The herald., 1895-02-27
HUNT|NGTON|S LOST CAUSE
No Chance at Any More Pacific
Railway Legislation
WHITE STANDS A BULWARK
Minority Report Opposing the Second
Reilly Funding Bill
II the Railroad People Win, the Conditions of
the Measure Would Be Antagonistic
to the Government

Washington, Feb. 26.-There seems to
be little prospect that any more attempts
at Pacific railway legislation will be made
in this Congress. Supporters of the bill
in the House went to the Senate to
make canvass of its chances, and were
told by Senator White of California that
half dozen Senators had resolved to see
to it that no legislation on the lines of
the Reilly bill should pass the Senate.
The members of the House Pacific Rail-
way Committee who are opposed to the
second bill for settling the debts of the
Union and Central Pacific companies
have presented to the House minority
report discussing the defects of the bill
from their point of view. The report is
signed by Representatives Snodgrass of
Tennessee Harris of Kansas and Cooper
of Wisconsin.
The report says: ''We call attention to
the following fatal defects of the bill.
While ostensbly providing for the pay
ment of the principal of the subsidy
bonds, amounting to $64, 623, 5l2, it really
gives to the debtor companies an option
which they may or may not accept, and
during which time the burdens of provid-
ing for the payment Of all sums, princi-
pal and interest, which may fall due or is
thrown upon the Government. Should
the propositions of the bill be accepted by
the debtor companies, it will result
in the transfer of the lien which the Gov
ernment holds as to the principal of the
debt to parties whose interests will be
entirely antagonistic to the Government
in the final payment of the net interest
advanced amounting to the sum of $75,
712, 429, which is, by the terms OF the bill,
expressly relegated to third place as a
security-which will be in effect no
security whatever as there will be no supe-
rior to the Government claim the sum of
$129, 247, 047, one-half drawing per cent
and one-half per cent. all of which
would be managed so as to destroy any
possibility of the ult mate payment of
the Government interest. Other objec-
tions mentioned are that the sink
ing fund must be kept intact for
twelve months and payment made by
the Government on the interest and prin-
cipal of the bonds that fall due, that COM
panies may declare dividends before they
have paid the debt to the United States,
a mention of the terms is admitted in
provisions for new mortgage, that per-
mission is given to portions of the Union
Pacific to be acquired by other corpora
tions; that all the companies are not re-
quired to comply with the provisions of
the bill and finally that it amounts to an
extension to the companies of one year
OH their debts. A bill designed to over
come these objections accompanies the
report.
Senator Stewart today gave notice OF an
intention to offer an amendment to the
general deficiency appropriation bill for
the appropriation of 81, $3.50, 5S3 to pay the
claims of the Southern Pacific Railway
Company against the Government allowed
by the Claims Committee, and OF 81, 276, 332
to pay the claims OF that company for
carrying mall passengers and freight
which have been allowed.