The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-02-12
THE UNION PAUlslo DEBr.



Washington City. Feb. 1.-THE house
committee On Pacific railroads gave a
hearing today TO representatives OF the
companies. Ellery Anderson. receiver and
government director OF the Union Pa
cific: A. A. II. Boissevain. who represents
large foreign holdings in the same COM
pany. and G. Fl. Twee1 g the Central
Pacific, presented the proposition o. the
corporations to settle their government
debts by the payment of the principal
thereon. an arrangement by which the
Union Pacific would pay the United States
ss3. 800 900 and the SvIsF Al Pacific about
s27.5oo.0so Representatives of large inter-
ssts in New York city. among them Presi-
dent Fitzgerald OF the Mercantile Trust
Company and ]. r. Morgan, member OF
the reorganization committee. have sent
dispatches asserting that the bill author
izing the secretary of the treasury to ac-
cept a cash payment OF the principal OF
the Union Paciic debt In full satisfaction
of all claims upon ii. viii be accepted and
carried out by the company. The propo-
sition was formally made by Boissevain
for the Union Pacific today. Anderson
said that the recongniftai Of the Reilly
bill by the house without action, and the
failure Of congress to give the executive
branch any instructions as to the protec-
ton OF the government interests. left the
whole matter in a very unsatisfactory
condition. The Central Pacific representa-
tive. Tweed. was not prepared to make
the same proposal in hehaif of that conf
pany, but said that = the parties who
might advance the principal of the debt
could be protected by holding a govern
ment lien as security for their advance,
the same terms could be carried out by
the Central Pacific. Such security was
necessary. In his opinion, on account Of
the existence of liens prior 50 the govern
ment lien. The result OF s6ch plan, he
argued. woum be TO protect the govern
ment against its obligations to pay cur
rency skies.
Mr.. Anderson said that while there was
no emergency demanding additional APP
proprlations or giving cause for alarm
within two years. the government should
dispose of It's Interests as soon as possi-
BILE. There was a slight exchange of
courtesies when, in the course Of his re-
marks, he characterized the action of the
house In reconmstf,ng the bill as un-
worthy OF comment. Boatner objected
to the criticism OF the house, and Mr..
Anderson said he would withdraw II.
The discussion was largely informal.
Blair said that the temper OF the house
upon the question was not favorable to
any plan 10 remit the interest ON the gov-
ernment debts. An inquiry was made
about the policy OF Introducing separate
bills for settling the debts OF the Union
Paclfic ard Central Pacific. which Mr..
Anderson suggested would be a fa!rer
test of the opinion OF the house upon the
question involved than . consolidation.
This proposal was opposed by Mr. Tweed.
In Mr. Anderson's opinion. foreclosure
could be avoided for three years by se-
curing stays In the courts and paying
the interest on bonds.
Speaking to an Associated Press re.
porter Mr.. Anderson said the plan 10 pay
the principal would be equivalent In is
financial results 10 the Reilly bill at
per cent. instead o. per cent. In the
present condition Of the money market
Boise. Idaho. Feb. fi.--By a vote OF IS 10
Is tie house passed today memorial 20
congress asking for the appointment OF a
sole government receiver for the Union
Pacific railroad.
Washington City, Feb. 1.-THE presi-
dent today appointed ]. II. Nelson Pat
rick. OF Omaha, government director OF
the I'aton Pacific