The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-02-12
PACIFIC RAILWAYS.
a Hearing Before the House CONS
mtttee Yesterday.

mtttee Yesterday.
Washington. Feb. 1.-THE HOUSE
Committee on Pacific Railways gave a.
hearing today to Representatives Of the
companies. Ellery Anderson, receiver
and government director of the Union
Pacific: A. A. II. BosseVain, who rep
reSentS large foreign holdings of the
same company; and c. II. Tweed, Of
the Central Pacific. presented a propo-
sition of the corporations to settle
their government debts by the payment
of the principal thereon. an arrange
ment by which the Union Pacific will
pay the United States about $50, 500, 600
and the Central Pacific about S27. $780,
600.
Representatives of large interests in
New York City. among them President
Fitzgerald, of the Mercantile Trust
company; and ]. 2. Morgan, 4 member
of the reorganization committee have
sent dispatches asserting that the bill
authorizing the secretary of the treas
ury to accept payment Of the princf-
pal of the Union Pacific debt in full
satisfaction Of all claims upon it, will
be accepted and carried out by the
company. Proposition was formally
made by BosseYain for the Union
Pacific today. Anderson said that
the recommittal of the Reilly bill by
the House without action and the fall
ure of Congress to give the executive
branch any instructions as to the pro-
lection of the government interests. left
the whole matter in a very unsatisfac-
tory condition.
The Central Pacific representative,
Tweed, was not prepared to make the
same proposal in behalf Of that COM
pany, but said if the parties who might
advance the principal of the debt could
be protected by holding a government
lien as security for their advances, the
same terms could be carried out by the
Central Pacific. Such security was nee
| esSary, in his opinion, on account of the
existence of liens prior to the govern
ment lien. The result of such a plan.
ne argued. would be to protect the gov
eminent against its obligations TO paw
currency SKIES
Mr.. Anderson said that while there
was no emergency demanding addf-
t1Onal appropriations or giving cause
for alarm within two years, the gov
eminent should dispose of it's inter-
ests as soon as possible. There was q
slight exchange of cOurtesies when in
the course of his remarks he charac-
terized the action of the House in re-
committing the bill as unworthy OF
comment. Mr.. Boatner objected to the
criticism of the House. and Mr. An
derson said he would withdraw it.
The discussion was largely informal.
Mr.. Blair CRepubican), of New Hamp-
shire, suggested the temper of the
House upon the question was not IA
Vordble to any plan to remit the in
terest on the government debts. In,
quiry was made about the policy Of in
PRODUCING separate bills for settling the
debts of the Union Pacific and Gem
| trail Pacific, which Mr.. Anderson sug-
gested would be fairer test of the
opinion of the House upon the ques-
| ton involved than a consolidation.
| This proposal was proposed by Mr.
Tweed In Mr.. Anderson's opinion
| foreclosure could be avoided for three
years by securing stays in the courts
and paying the interest on bonds.
| Speaking TO an Associated Press re-
porter, Mr.. Anderson said the plan tn
pay the principal would be equivalent
in its financial results to the Reilly bill
at 2 per cent. instead Of per cent. in
the present condition of the money
market.