The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1895-02-08
MIR. REILLY YET HAS HOPE.
Believes the Funding Bill Will Come
Up Again.
As Was Predicted, a Proposition for
Cash Compromise Has Come From
the BOndhOlders.

WASHINGTON, Feb. THE House Cozl,
mittee on Pacific Railroads met upoa the
call of Chairman Reilly this morning. Mr..
Boatner was the only member of the min
ority present when the committee began
its deliberations. Harris of Kansas came
in later. AS predicted in THE CALL dis
patches last night the proposition to accept
cash to the amount of the principal of the
debts on both the Union and Central Paci-
fic railroads was preached to-day. In fact,
there is but little doubt that Chairman
Reilly called the meeting with this end in
view, for soon after the committee met he
| drew from his pocket letter from Mr..
| Boisevain, representing the Dutch stock
| holders of the Union Pacific, proposing to
| pay into the treasury the amount of the
| principal if the Government would let the
interest, amounting to more than the prin-
cipal, go, and give receipt in full. There
was no vote on this proposition, but it is
understood that the majority of the COM
mittee will favor it.
1t was decided by the committee to
again report the Reilly bill to the House.
but pending such action Chairman Reilly
was instructed to confer with Secretary
Carlisle and Attorney-General Olney to
ascertain whether, in their opinion, any
further action by Congress is necessary at
this time to protect the Governments in
terests.. Reilly has evidently already been
in consultation with Olney and knows
what the Attorney General will recon-
mend. Reilly claims that there must be
some further action by Congress immedi-
ately or else the Government will be called
upon to make good it's Endorsement of the
Union Pacific bonds at least, claiming that
default already exists and that unless there
is an extension of the debt or some COM
promise on cash basis Congress will be
called upon to meet these bonds by an
appropriation to the amount of its security.
AS for the Central Pacifc's bonds, some
of which have already matured and been
paid out of the general treasury fund, the
Acknowledgement is supposed to be still
wrestling with the question as to the ap-
plication of the sinking fund and the credit
for transportation services.
1t is predicted that Attorney General
Olney will, through Secretary Carlisle,
give his opinion to Reilly that the status
of this Pacific Railroad debt makes further
and immediate action by Congress impera-
tive for the protection of the Governments
interests, at least as regards the bonds of
the Union Pacific. Boatner says that he
believes that proposition of the roads to
pay 80 cents on the dollar would now be
accepted by the House. He does not favor
it especially himself, and will try and have
his modified substitute adopted if the mat
ter comes up.
There is very little probability that the
Rules Committee Will allow another day for
the consideration of the Pacific roads
debt question, unless Attorney General
OIney, as spokesman of the administra-
ton in this matter, opines that further
action at this time is imperative, in which
case Messrs. Crisp Catchings and Outh-
waite of the Rules Committee will hasten
to sound their cuckoo notes and the whole
question will be fought over again. Or, if
Senator Brice succeeds in having the cash
compromise proposition engrafted on
the sundry civil appropriation bill, it will
come up again when that bill returns to
the House for concurrence in the Senate
amendments.