The morning call., 1895-01-15
SPLIT ON THE BONDS OF RAILROADS.
A Decision by The Council Of State That
Interest Must Be Paid in Perpetuity
Causes the Trouble.


in the matter of guaranteeing the interest
of the southern railroad lines.
It became generally known that NJ. Alex
ander Milne, the well-known socialist
Deputy and editor-in-chief of the Petite
Republique Franchise, would interpellate
the Government in regard to M. Barthou's
resignation, and that the Government
would reply thereto. Consequently large
crowd gathered in the Chamber to listen
to the proceedings.
1t was known that the position of the
Cabinet was not as sure as it might have
been, and the enemies of the Government
had hopes that the debate of the day would
result in its overthrow. These hopes were
realized. The question which led to the
overthrow of the Ministry is a wide one.
1t is really question as to whether the
Chamber is able to set aside the constitu-
ton at will.
In 1882 the Government made contract
with the Orleans and Midi railways, under
the terms of which, in return for certain IA
cilities, transportation of war material, the
Government guaranteed the interest on the
bonds of the railways. The Government
held that the guarantee expired in 1914,
but the directors of the companies took a
different view and construed the agree
ment to mean that the Government guar
anteed the interest in perpetuity. Suits
were brought in the courts to settle the
question.
In June last Mr.. Barthou ordered the
directors to indorse their bonds to the eff
feet that the guarantee expired in 1914.
The directors refused to do so, and the case
was then taken to the Council of State,
which in such matters is the final court
of appeal. The Council on Wednesday
last decided that the guarantee was
perpetual. This decision, which major
ity in the Chamber claimed the right to
reverse, was complete negation of the
contention of the Dupuy Cabinet and M.
Barthou's action on the railway guaran-
tees. Consequently, the latter yesterday
resigned, and the proceedings in the Cham
Der to-day led to the resignation of the
other members of the Ministry.
In submitting his Interpolation, NJ. Mil
leraud said it was not Barthou alone who
had brought before the Council of State
the conventions between the State and the
railroad companies, but the whole cabinet.
The decision of the Council of State, there
fore, affected the entire cabinet, but only
one minister, Barthou, had taken the cor
rect attitude and resigned.
The Ministry was also to blame for SUBJ
hitting to the Council of State question
which belonged to the Chamber of Depu-
ties to decide. NJ. Milleraud demanded
that an inquiry be held to determine
whether grounds existed for criminal
prosecution of NJ. David Raynal, who was
Minister of Public Works in the Ferry
Cabinet of 1885, in which year the Govern
ment entered into contract with the rail
ways.
NJ. Milleraud submitted to the House
resolution censuring the Government for
laying before the Council of State litigous
questions and demanding that an inquiry
be made into the conduct of NJ. Raynal.
Raynal agreed to the demand that an in
quiry be made into his conduct, and said:
81 am certain that | shall be able to con-
found those who are thirsting for scan
dals and hungering for calumnies.
Prime Minister Dupuy declared that
after Raynal's acceptance of the demand
for an inquiry the Government would not
oppose it. Referring to the order of the
day, Dupuy reminded the Chamber that
the question of the period during which
time the interest guarantees would remain
in force had already been raised and that
the Chamber had recognized the COM
potency of the Council of State to deal with
the question. Applause from the Center.1
Continuing M. Dupuy said:
"The decision has been given and we
cannot disregard it. The Council of State
has decided the principle. In case of pro-
test the Chamber must Judge whether the
Government is capable of continuing in
Office. M. Barthou resigned because he
regarded the decision of the Council of
State as personal slight. The Govern
ment did not have the same reasons for
adopting that course. If it had resigned
spontaneously it would have failed in its
duty.
''The Cabinet accepted the decision of the
Council of State, while regretting the Min
istry's defeat. NJ. Barthou was considered
by his attitude, speeches and statements to
have been more concerned than his col
leagues in the decision of the Council of
State. He resigned because the decision
established precedent from which the
railroad companies would desire to profit
He therefore declined to be Inundated be-
fore the railway companies
DR.. Chapui is, Radical Republican, SUBJ
mitted the following order of the day:
''The Chamber, regretting the erroneous
and dangerous Interpretation placed by
the Government on the decision of the
Council of State, passed to the order of the
day."
This was adopted and the motion of
Milleraud was then carried by vote of 253
to 223. Eleven other orders of the day
were submitted. Priority was given by a
vote of 293 to 231 to one calling on the Gov
eminent to vigorously defend the rights of
the State as affected by the decision of the
Council of State.
Dupuy declared that if this order of the
day should be adopted the Government
would resign.
A vote was finally taken on the latter
motion, with the result that it was de-
feated, the vote standing 246 in favor of to
264 against.
After several speeches and declarations
had been made, the Chamber voted on a
proposal to grant priority to a motion
made by Professor Trelat, Republican,
which of all the orde.s of the day was the