The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1895-02-24
PACIFIC RAILROAD DEBTS.
REILLY FAVORABLY REPORTS THE
COMMITTEE COMPROMISE
MEASURE.
BOATNER SUBMITS A MINORITY
OPINION, BUT FAVORs THE
New BILL.

WASHINGTON, Feb. 23.-Chairman Reilly
to-day reported to the House the bill re-
Gently agreed to by the committee regard
ing the Pacific railroads debt.
The report says that since the action of
the House in recommitting the original
bill, the committee has given the subject
still further consideration. While a ma
iority of the committee are still of the
opinion that the original measure reported
was perhaps the best solution looking to
an adjustment of the affairs of the
Government with the Pacific rail-
ways that could be attempted, the
action of the House and the apparent ne
cessity that some action should be taken by
Congress at this session, have given rise
to other propositions of a settlement,
which the committee have carefully con-
sidered, Representatives of the various
companies have appeared before the COM
mittee since the action of the House and
expressed their anxiety to have some legis-
lation enacted looking to the adjustment
of this Indebtedness to the United States.
The proposition that the companies settle
their Indebtedness by payment of the
principal sum OF the subsidy bonds
seemed, the report says, to meet with some
favor generally, but the committee has not
seen proper to assume the responsibility of
fayorably recommending an adjustment
upon any such terms, which involved the
remission of one-half or more of the
Governments claim.
From statements made by representa-
tives of the various companies and from
the investigation made by the committee.
Ill, ~
present bill can be and will be carried out
by the companies, and if so, in view of the
fact that it will save the treasury from
being compelled to pay out the large
sums necessary to discharge the subsidy
bonds at maturity, that the payment of
the balance of the Governments claim
under the terms of this bill is insured. con-
sidering the great interests involved in
these properties by United States citizens
and others in foreign countries and the
Importance and necessity of attempting to
secure some plan of adjustment, the COM
mittee reports that it has agread upon the
bill submitted for the consideration of the
House
The committee points out the necessity,
in any plan of adjustment, of making pro-
vision in some way for the first mortgage
debt, and says that unless some provision
is made for the settlement of the first mort
gage debt and first mortgage bonds, the
claims of the United States would be
placed in great jeopardy as in the event of
default in payment foreclosure proceedings
may be instituted.
In the adjustment the new bill abso-
lutely secures every dollar to the Govern
ment against the companies yet the
feature of the present bill that commends
itself is that the treasury viii be relieved
from the necessity of paying out the large
sums necessary to discharge the subsidy
bonds at maturity.
Representative Boatner submitted a
minority report heartily concurring in the
| recommendation of the committee that
the bill reported be passed, but saying
that he does not concur in the view ex-
pressed by the majority that the recon-
mitted bill was more advantageous to the
Government than the one now reported