The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1896-12-16
IN THE HOUSE.

In the house today under agreement m ade
last week, Mr.. Powers, Republican of Yer
mont, called up the bill to define the rights
and privileges of the purchasers of the At
Iantic and Pacific railroad and franchises
under. the foreclosure Of the mortage
authorized tobe placed on the property by the
act of 1871. Mr.. Powers explained the
necessity for the proposed legislation. When
Congress authorized the mortgage of the
real property and franchises Of company, it
was supposed the act was broad enough to
carry with the sale under foreclosure the
right to the purchasers to be a corporation.
In two litigated cases the Supreme court
decided that such act did not carry the right
to be a corporation and this bill was neces-
sarv that the purchasers under the mort
gage indicated, might incorporate them
selves and take the property and franchises.
He said the bill gave the new corporation
no privileges not possessed by the OLD com
pany and held it to strict fufilment of all
its obligations.
An amendment by Mr. Moody, Republican
of Massachusetts, was agreed to limiting the
issue of stock to the amount of the unpaid
mortgage debt at the time of the sale and
providing that additional stock may be
issued with thesapproval of the Secretary OF
the Interior for cash paid in and limited to
$100, ,000, 900.
A letter was read from Joseph H. Call,
special United States attorney in the htiga-
ton against the Pacific Railroad company
urging the passage of the bill. The letter
said the bill sufficiently guarded the in
terests of the government and the prompt
reorganization of the company was demand
ed in Justice to the people along the line of
the road.
Mr. McRea, Republican of Arkansas, pro-
posed substitute for the Senate bill, going
into minute detail to enforce the liabilities
and obligations Of the Atlantic and Pacific
Railroad company upon the successor COM
pany, requiring the sale of all lands within
its grants when reasonable price" is
offered Pending consideration of the bill,
the legislative, executive and Judicial ap-
preparation bill for the year ending June Q,
1898. was reported and placed Oh the calen-
dar.
Mr.. McRea, supporting his substitute for
the pending bill in answer to questions by
members as to the necessity of all the pro-
visions he had set forth, said that II the
House wanted to protect the creditors OF the
Atlantic andPacific railroad, its workingmen
and others, it would put it in the BOND,
.for'' he said the history of that corporation
for forty years shows that it has violated
every pledge it ever undertook to keep.
McRea's substitute was rejected, yeas, 7o'
nays, 1853.
An amendment to the committees Dill was
agreed to requiring the new company 10
become incorporated in 1he several states
through which its line runs.
Mr. Cooke, Republican of Illinois, moved
an amendment requiring the purchasers as
precedent to organization. within SIX
months of the passage Of the bill and be-
fore it shall take effect to file with the
Secretary Of the Interior a satisfactory relin-
quishment of all claim to that part OF sthe
land grant adjoining the uncompleted por-
| ton of the road.
MIR. Powers said a suit to enforce the for