Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-11-23
Senator Thurston Outlines Plan of
Adjustment.
One CONTINUOUS line INTENDED
Differs From the Government d.
rectors in Procedure.
OTHER TOPICS DISCUSSED

railroads, and he is looked upon as one of
the most important figures in the United
States Senate in connection with the settle
ment of the governments claim, so long
standing. Oh this railroad property.
Senator ThurSton was seen by Star re-
porter today. When asked what he pro-
posed to do in the Senate in connection with
the settlement of the governments claim,
he replied:
II shall probably introduce a bill early in
the session, and this bill will represent solely
my own ideas of the solution of this ques-
ton. The result to the government and to
the property would be very much the same
under the bill propose to introduce as I'M
der the plan proposed by the government
directors in their late report. About the
only matter in which my views differ from
the views OF the government directors Is In
the character of procedure to reach the re-.
suit.
One Continuous Line Intended.
Il think the Pacific line from the Missouri
river to San Jose. California, was intended
by the government to constitute for all prac-
teal purposes one continuous line, to be
operated as such, without any division at
Ogden or elsewhere, whereby one part could
cause any injury or destruction to the other
by dlverting its freight under through ar
rangements with other lines. With a view
of restoring the through line to the condition
contemplated by the original act, my idea is
for the government to ascertain what the
entire Indebtedness of that through line to
the government will be on July l next. That
would be ascertained by taking the amount
paid by the government and deducting from
1t the government credits for transportation
and the amount in the sinking funds. Then
let the Secretary offer that claim, as one
claim, to be sold to purchaser Is one claim
and sold to the highest bidder, who will
o1er, say, 30 per cent of the entire amount.
Perhaps it might be well to put the mini
mum at 40 per cent, so as 10 insure sale.
l think it is certain that public offer Of this
sort would arouse such competition among
the great railroad interests OF the country
that the government would obtain certainly
all that its claim is or can be worth or that
could be made out of any forced sale of the
property. or through any other disposition
OF It, In view Of the fact that there is very
large first mortgage ahead of the govern
ments claim on the entire line.
The Foreclosure Proccedfnxs,
My plan is to provide that the DUR
chaser OF this government claim shall take
all the rights of the government against
the property, including its lien, its right of
entry and of foreclosure. Also, that some
one court OF the United States, presum-
ably the Nebraska district, should have
foiw ard foreclosure proceedings of that
claim by the purchaser as against the en-
tire property, so that foreclosure suit could
be commenced and carried through and the
property sold under proc edure in one court
without complicatins the proceedings by
seven or eight suits in separate United
States courts. Then provide that n sale
should be made on foreclosure proceedings
to committee of trustees not less than
ten In number, and their names should be
returned to the court with report Oh
the order of sale. This measure should
provide that that committee of purchasers
together with five commissioners nominated
by the President should constitute a cor
poration in the same manner as the orgi-
nal individuals and government commits
siorers We're named a corporation under
the original Pacific railroad act.
These individuals should be given
right to organize and perfect a corporate
body under the name of the Union and
Central Pacific Railway Company. and we
should confer upon that corporation all
the powers rights franchises and CORE
spending liabilities and obliga tons of the
two companies under the original act of
Congress.
The result of this plan would be that
the government would receive almost at
once in cash whatever its second lien
against the properties is fairly worth in
the market under competitive bidding. 1t
would result in speedy foreclosure and
reorganization of the two railroad lines as
one CORPORATION, and, best of all, in final
settlement of the question that has been
veXing the western people for So many
years.
This outline of my proposed plan is, Of
course, subject to modification or change
before l formulate my bill. but l think it
is substantially in outline what shall pro-
pose.
Differs in Procedure.
This plan differs from the government
- n 1ta lint cir
in procedure. Their plan looks to a car
rying on of foreclosure proceedings by the
COVE ment itself and disposition of the
property at the end of those proceedings
to the highest bidder, who will give at
least a maximum price to be fixed My
plan, I think, is much simpler because 1t
secures to the government all that 1t can
hope to get, without further responsibility,
and leaves to the purchasers of the gov
ernment claim the burden of carrying on
all the foreclosure proceedings and plan of
orcal iZation."
What would be the minimum the gov
eminent would receive by this plan?" the
reporter asked.
Il should say the government would re-
ceive from forty-6ve to fifty-ive millions of
dollars"
do you think this measure can be got
ten through the coming Congress-
A Practical and Feasible Plan.
Il cannot tell that. and could not say
what the strength of this measure would
be in the Senate. 1 think, from my famil-
iarty with the Pacific railroad property
and the whole situation, that the plan I
have outlined will be practical and feasible,
and that it will secure to the government
all it can hope to get, and will give the peo-
pie of the country much better railway
cervice, perpetuate what the government
intended to provide fora continuous line
of railway operated under one manage
ment from the Missouri river to the Pacific
coast I have not the least idea whether
any of the former owners of the Union Pa
cific or Central Pacific would undertake to
enter the field as bidders for the govern
ments claim. The field would be open.
Any capitalist or combination of capitalists
could become bidders. and I imagine the
strife to secure that great property under
these conditions would be great, and most
likely would result In bid considerably
more than the governments claim 1 do
not care what interest secures that prop
erty so that it is organized as one line so
that our western people could secure the
benefit following from such a course and
the government could be divorced from this
disputed and contentious matter"
Not u Doubtful State.
win Nebraska be doubtful state in the