The San Francisco call., 1896-04-07
The Bill Proposes to Extend the
Time Beyond the Life of
the Corporations.
THERE WILL BE OPPOSITION
Morgan and Mcguire to Prepare a
Measure in the Interests of
the People.

WASHINGTON, D. c., April 6.-The
joint subcommittee on Pacific railroads
met to-day and agreed on the bill printed
in last Tuesdays CALL, the only changes
made being as follows: The payment to be
made by the Central Pacific during the
first ten years is 1855, 900 instead of $780,
600; and $3.50, 900 during the second ten
years instead of $780, 600; and for every
ten years thereafter, until the debt is dis
charged, $500 is to be paid.
Another change provides that "the COM
panles shall at all times afford to all other
lines of railroad, equal and reasonable
facilities for making connections with
them, or either of them, and equal facili-
ties for transportation of passengers anG
freights thereon"
This amendment was adopted so as to
make it appear that there would be no dis
elimination by the roads hereafter.
The bill was submitted to the full COM
mittees of both houses to-day. 1t is al
together probable it will be reported to
the House first. The Senate committee
does not meet again until Friday. There
is disposition by certain members OF this
committee to increase the payments to be
made by the Central Pacific, but, as Hun
tington drafted the bill. and as it has been
swallowed at a gulp by subcommittee,
there is little doubt but that the bill will
remain as it is.
The measure was either drafted by
Huntington in toto, or else Powers. Sulzer
Faris and other members of the sub-com-
mit.ee lied. 1t was known by THE CALL
correspondent one week ago that bill
n rod nd
ers, Sulzer and Faris of the comm ittee de-
clared emphatically that they had drafted
no bill, nor had they seen the draft of any
measure. They either lied or allowed
Huntington to draft the bill and then ac-
cepted it without any salt. THE CALL cor
respondent has good reason to believe that
the bill was got up by Huntington and
Senator Frye, and that the ''s1nall fry"
members of the subcommittee spoke
truthfully when they said they had not
seen the bill. They were not liars, but
they were Huntington tools and accepted
his dictum without murmur.
Representative Mcguire was asked by
| by THE CALL correspondent tonight what
he thought of the new funding bill, and
| said:
| "The funding bill said to have been re-
| ported by the joint subcommittee Of the
Committee on Pacific Railroads this after
| noon is worse than the Reilly bill for the
| United States Government and just as bad
| as the Reilly bill for the people of the
Pacific Coast. Everything that was said
against the Reilly bill in the Fifty-third
| Congress can be urged with equal force
against the new bill. There is one feature
of the new bill which is patentable for its
novelty. l refer to the provision extend
ing the corporate life and character Of the
Central Pacific Railroad Company for
thirty-six years beyond the period of ex-
istenee as absolutely limited by the con-
stitutional laws of the State of California,
| under which it was incorporated.
'The corporation is an artificial person
created under the laws of the State, by
which the life of every corporation is abb
solutely limited to period of fifty years
7 his attempt on the part of the Federal
Government to brush aside State laws. to
override the public policy of the State as
declared in those laws. and to take away
vested rights of the stockholders as others
who have dealt with the corporation upon
the assurance embodied in laws (under
which the corporation was organized) that
at the end of fifty years from the time of
it's incorporation they would enjoy an ab-
solute right TO have it's assets sold and the
proceeds, after the payment of debts,
divided among the stockholders. is an act
of usurpation on the part of the Federal
Government. For this there is no prece-
cedent in Federal legislation. But Mr.
Huntington wants it done, and what
do the constitutional rights of State
amount to when they run contrary to his
wish?
| "Now that it is certain that the funding
bill is to be reported to the House at this
session of Congress and perhaps voted
upon the course to be pursued by Repre-
sentatives of California Is made clearer.
Heretofore we have taken the position
that no affirmative legislation is required
| for settlement of the Pacific roads debts,
that the foreclosure of mortgages and
sale Of railroads 10 satisfy their debt to the
Government are amply authorized by
existing laws. We have not asked for any
affirmative legislation because the request
would be a tacit admission that
affirmative legislation is necessary
and would tend to precipitate
| the consideration of the Pacific
roads bills in the House. That, of course,
was undesirable as long as we could pre-
vent it. Now that the matter is to be
brought up for consideration we will en-
deavor to agree with Senator Morgan and
other opponents of refunding upon such
measures as will be likely to command the
strongest possible support in both Houses.
Senator Morgan has furnished me with an
outlined draft of bill following the gen.
eral scheme covered by his resolutions,
modified somewhat to meet some of our
views, and think it probable that we can
all agree to support bill framed on those
lines and to antagonize the funding
scheme in both Houses with such bill
|
| Of Interest to the Coast.