New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-12-09


subject at once. what should be done7'
For years Congress has had under considera-
ton numerous refunding bills replied the Sen.
ator differing somewhat in detail but all pro-
posing refund.ng or the Government debt by
issuing second mortgage Government bonds
at low rate OF interest with periodical payments
running through n long term of years. All such
plans have far been rejected by Congress; and
in view OF the present practical insolvency OF the
companies and the great falling OF in railway bust
ness, It Is believed that any OF the present
owners or stockholders OF either the Union or
Central Pacific companies are now in a condition
to accep: comply with the terms o! any such
retunding scheme 1t is safe, therefore. 10 as
sumo that settlement or adjustment can como
about through the passage OF any act 10 refund or
extend the Government bonds.
WANT THE WATER WIRING OUT.
There are many people the West who prefer
the mortgages the Pacific roads foreclosed
and the Government claims entirely wiped out For
they believe that this would result in what they
term 'wringinG the water out Of the property and
securing its reorganization upon reasonable capt.
talzation. enabling the company to establish
lower tariffs II this result were certain to follow.
I should favor an appearance by the Government in
the present foreclosure proceedings which would
result; in the speedy sale OF the roads o, the Union
Pacific TO the highest bidder on foreclosure sale
from which sale ! imagine the Government wouIa
receive little II anythhg IN my } pia oa nov W
ever. any purchaser OF the Cnlon facinc Io . -
the foreclosure sale would reorganze 1t and recap
taZe II exactly 10 me same cAttIt d. "vHiO tlc
purchaser OF the property under any other
theory OF settlement thai can be or mas peeh pro-
the amount which tae Government secures IN set
Element OF its claim VII have little II ANYTHING. 10
The plan proposed by the Government directors
dera in its char@c'sr from o any n Of ,ba se
plan with any degree Of hopefulness%'
he 70 err ha of Ppsna P P
poses OF the Pacific railway legislation by consoda-
the Central Pacific. thereby forming continuous
through line operated by one company rom IN Ih,
which the Government directors aim to reach meets
win my near @ rSs, can e'i in nv idsment ne
s!mplifed. and, so FAR as the Government is con
gest that the United States, as the owners OF
second mortgage begin foreclosure procee9nGs. anu
DEGREES can b. entered and sale made. The Gov
orrrnan, is 70 ntrchase or redeem from the first
,porrgage and resell 70 the highest BIDDER who will
pay not less than stated minimum percentage on
This procedure would throw the whole burden Of
compei il TO meet ito own maturing bonds and pro
vide moneys snrl''e be t,e3,ou5 DELAYS and un-
certantes of court procedures in which me rep,r5
ssmanGs can nterpose conpcaied issues and It is
doubtful it the Government could IN that way
finally G iRe am &c; PG reazed for its calm the
foreclosure cases We're finally passed upon ny the
Government can sell its second mortgage claims
9 ne eye nsde oa could nope to make out
OF the property in any other way that has ever
been proposed
VALUE OF SECOND MORTGAGES.
"Au other second mortgage railway bonds have
market price which is determined from time 10
time bv the busine ss Judgment OF the monetary and
commercial world and which represents the faif
cash value Of the second mortgage interest IN me
the 6r, Tsss b5GSS on
PsciAc roads. those bonds would have a certain
m nnesdn by h holders ard BY proposed pucha
ers as their real value and any se'tenenl o. ~ tb
market prce Of the bonds That Is the ony Lsir
basis upon which business men a can Gsgose gwav
securities or settle their claims asais- """'
companies or any other mortgage propeT' ;, ma
"Tjo the securities Of tle GoVsrr ny ,llIear. MD
terially from those Of the private indivduaiZ ,,a
II see no reason why me n-tea an 'indyiduai
Wou.a ~, i, tSn pscsfN r5ads Ito second mortgage
~ IN are Tortn lust exactly what they can be
sold for in the open market There are many pur-
eRasers ready to BID every dollar that the Govern
ment claim is actually worth Congressional m
genuity has not yet suSeest@o any va! III VIII"
the Government can secure moT .,,ro ,ory with the
original ncorpora;srs or with any o,ner OF me Con-
trHIIed the Pacific roads. The properties are con-
I snSSonG mortgages II the Government offers lis
calm for sale TO the hlshseC H. 1bs fPacidc
roads stand exactly on a par with al others VINO
may desire TO compete ior me RropSeN ~ relief
FOR the payment OF the second mortgages
SENATOR THURsTON's PLAN.
.rn nv Judgment there is only one simple. clean
practical and business way for the Government 10
troceed: To offer It's second mortgage clam asalfs'
each road TO the highest bidder and sell Ii for what
ever IT will bring The desire OF great capitalists 10
s,cura control o. these properties will insure DDS
far all the properties are worth. Provide by act OF
Congress that the purchaser % the Goyernment
C Of the toveTnmea including is len its Eq y. ,S of
entry and It's privilege OF ioreclosute' b,I fair
nrce bv comforting upon some one circuit court Oh
he United States full jurisdiction to carry on lore
closure proceedings as 70 me ehtIe tIIIo anu ,r
ale the purchaser at the foreclosure SAFE INTO cor
ect all the obligations ana dqte7 coierfe' IT, Ti,
imposed by the original Pacihc Kall"ay az ne
Goyernmcnt would In this way get cash al an cary
a.. for tho ful market vs.ue OF its claim, and the
ultimate character OF the Pacllc roauS a. 1871
ment agencies for all puoAc business anu eHie'se"
cies would be preserved ,,-.,u -. -.,,,,, In
Might there not be a combination OF raiiroai IN
,orasfs 70 prevent competition?
"In order that combination OF railroad Interests
could be formed. remote as such ssbilty Is, 70
nrevent competition and fair bid al the proposed
sale of the Government interest, II would De wen
20 AMOUNT due the United States below which
no bids would b. received FROM the Drei outMle
of my proposed bill on this subject some OF me puD
lie prints have assumed that the pan contempiaIrs
that the Government take bne bonus 81 f S1e NV
chaser. Of the new company 20 pe lo!iI t, oI
the purchaser in payment OF the amount pa,
have never had any such idea think we nave
passed the point where extension Of the Govern
ment debt under any new BOND or 9'her 10TH n, Oh
Indebtedness be further considered II the Gov.
eminent sells its claim to the highest bidder that
bidder must pay cash .,.u al. -, ,,,,r5
with the necessary millions IN his pocket WIN whicn
TO make a cash payment But in my Judgment IL
would not be a difficult matter 10 organize "A COM
mittee which could successfully handle the matter
| Of a cash payment. The committee, buying sec
ond mortgage from the Government, could issue 10
each contributor 10 its purchasing fund certifcate
showing the amount Of MS holding IN the mortgage
security which would take the same place IN MS
safe or In the market bond issued under a
second mortgage OF the same character. Capital
ists who would contemplate the purchase or the
Government calm and reorganization OF the Pa
cidc properties. either sng.y whole, could
readily settle all such OF detail among them
selves But so far as the Government is concerned
the sale must be absolute closing out OF its claim
for cash
rately?"
SEPARATELY OR TOGETHER.