Kansas City daily journal. [volume] (Kansas City, Mo.) 1892-1897, 1895-02-12
BY PAYING The PRINCIPAL,
PACtrIC ROADS OFFER TO SETTLE
WITH TIE GOvERNMENT.
Proposition to Wipe Out the Indcbt cdncss
by Paying the Principal but Not
the Interest Before the
House Committee.

WASHINGTON, Feb 1.-THE house commit
tee on Pacific railroads gave a hearing to-
day to representatives Of the companies.
l.. Ellefy Anderson. receiver and govern
ment director Of the Union Pacific, 4. A.
II, Boisevan, who represents large foreign
holdings of the same company. and G. II.
Tweed, Of the Central Pacific presented
the proposition of the corporations to set
tie their government debts by the payment
of the principal thereon, an arrangement
by which the Union Pacific would pay the
United States about Sa, ,5DO.OOn and the Cen-
trail Pacific about $2Ljoo,OOo. Representa-
tivcs of large Interests in New York city
have communicated with Chairman Reilly,
among them President Fitzgerald, OF the
Mercantile Trust Company. ana j. T.. Nor
gan, member OF the reorganization COM
mlttco. whose dispatches were read to-day,
asserting that a hill authorizing the sec-
rctary OF the treasury to accept cash pay.
mcnt Of the principal of the Union Pacific
debt in fun satisfaction Of all claims upon
itwould bo accepted ana carried out by the
company
Mr.. Boscvaln for the Union Pacific to-day.
Mr.. Anderson said that the reconmttal Of
The Reilly bill by the house without action.
and the failure OF congress to give the eN-
ecutivo branch of the country any in
structions as to protection of government
interests, left the whole matter In very
ciilc representative, Mr.. Tweed, was not
prepared to make the same proposal in
behalf Of that company. but said Il TIA.
parties who might advance the principal of
the debt could be protected by holding the
government lien as security for their adj
vances, the same terms could hc carried
out by the Central Pacific. Such security
was necessary, In his opinion, on account
of the existence of the liens prior to the
government lien. The result of such Il
plan he argued. would be to protect the
government against its obligations to pay
the currency 6s
MIR. Anderson said that while there was
no emergency demanding additional apprO-
priations or giving cause for alarm with
in two years, the government should dis
pose of its interests as soon as possible
There was slight exchange Of Courtosies
when. in the course of his remarks. he
recommitting the bill unworthy of COM
ment. Mr. Boatner objected to the crti-
cism OF the house, and Mr.. Anderson said
he would withdraw 1t.
The discussion was largely Informal, Mr.
Blair, of New Hampshire. suggested the
present temper of the house upon the
question was not favorable to any plan to
remit the interest on the government debts
Inquiry was made about the policy of in
PRODUCING separate bills for settling the
Pacific; which Mr.. Anderson suggested
would be a fairer test of the opinion of the
house upon the questio involved than con-
Solidation This proposal was opposed by
foreclosure could be averted for three years
by securing stays in the courts and paving
the interest on the bonds
Speaking to an Associated Press reporter
Ny Anderson said the plan TO pay the
principal would be equivalent in its imam
cial results to the Reilly bill. at . per
cent, instead of 3 per cent, in the present
condition of the money market.