Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-03-10
Senator Morgan's Proposition to
Solve the Problem.
DISFRICFCOURTS FOHAVE JURISDICTION
Secretary Of the Treasury to Take
Full Possession.


ton of Mr.. c P. Huntington before the
Pacific railroads committee last Saturday,
and yesterday he introduced resolution
that may be taken as his proposition to
solve the troublesome problem presented
by the affairs of the Union and Central
Pacific roads. There are two fundamental
ideas in his plaza refunding of the bonds,
botn the government and first mortgage,
ana foreclosure of the claim of the gov
eminent on the possession of the roads and
their property. Naturally, the scheme Is
stated at great length, but is not put at
present in the formal language of an act
OF Congress, but in the shape of resolu-
ton Of the Senate, directing the Pacific
railroads. committee to report bill en-
bodying the various features set forth by
Senator Morgan. When he presented it
yesterday he asked to have it lie upon the
gable, and gave notice that he would call
II up for action at a later date. 1t is prac-
tcaily certain that he will make a speech
OF some length when he moves the passage
OF the resolution, which will embody all
his views on the subject. and will probably
analyZe In vigorous manner the volumi-
nous testimony given by Mr.. Huntington
In his recent examinations.
Provisions of the Resolution.
The resolution first directs the committee
to report to the Senate the bill (S 113D
heretofore referred, granting to the Court
of Appeals of the District exclusive juris-
diction over any and all suits that may be
brought by the United States to enforce or
obtain other relief upon any lien on any
railway or property belonging to railway
corporations, wherever such property may
be situated.
statute the proposed plan is then set forth
in twenty-three provisions, which the COM
mlttee is instructed to report an original
bill or as amendments to the bill already
noted. The first provision is for refundng
the outstanding bonds. held by bona fide
owners not indebted to the United States,
that have been heretofore issued by the
United States to the Union Pacific Railroad
Company or any of its branch railroads, or
to the Central Pacific railroad Company or
any OF its branches. and also for refunding
the first mortgage bonds that are first
lien upon the railroads or their branches,
and upon any other property of either Of
the companies.
These bonds shall be refunded in the
bonds of the United States to mature after
thirty years, at the option of the govern
ment, and subject at any time after ten
years to be called in ami paid by the Uni
ted States; and to bear interest at 3 per
cent.
To Take Possession.
In accordance with the fifth section of the
act of July l, 1862, aiding the roads con-
struction, the Secretary of the Treasury is
to take possession of the whole line of the
railroad and telegraph, together with the
rolling stock, fixtures and property of every
kind and description in possession of the
Union and Central Pacific Railroad compa-
MES, and equipments of every sort, that
were built under the provisions of that act
of Congress, or any amendment thereof, to-
gether with all their rights, functions, i'm
munitias and appurtenances, and also all
lands granted to and belonging to either of
the railroad companies that have not been
conveyed to bona fide purchasers. Until
Congress shall otherwise direct, the property
shall be held and controlled the property
CT the United States, to be administered in
conformity with the general uses and pur-
poses for which the railroad companies were
instituted, and under the laws regulating and
the companies.
The bill is to create fer the railroad COM
panies a board of directors to control and
manage 10th of them. who shall supersede
the existing boards of directors in each of
said railroad companies in full direction and
control. This board of directors shall con-
sist of nine citizens of the United States, to
be appointed by the President, by and with
the advice and consent of the Senate. They
snail be competent business men, four of
whom shall reside in states lying east of the
Mississippi river and four west of that river.
The President of the United States is to
designate one of the appOinteeS as president
OF said board of directors, and he may be
appointed from, or reside in, any part of the
United States
Present Officers to he Suspended.
The offices of president, vice president
and treasurer, as they now exist in each Of
the companies, are suspended as to the
present incumbents, and as to all their
functions, and the president of the board of
directors and the general treasurers shall
exercise such duties as appropriately be-
long by law. or by the bylaws of the COM
panies, to such officers. The board of di-
rectors are empowered to alter the bylaws.
All ether officers and employees of each of
the companies are continued in office and
employment until they are removed by au-
thority derived from this act; and the
president of the board Of directors is en-
powered to remove any officer or employee
in the service of either of said companies
except the directors and general treasurers.
No Dividends Until Debts Are Paid.
No stakeholder in either railroad COM
pany shall receive any dividend on his
stock until the debts Of the company, the
payment of which is not secured by this
act, shall have been paid, nor shall such
stakeholder receive any dividend on his
stock, in either of said companies, until the
interest is paid upon all bonds for which the
United States or the company that issued
such stock is liable. and until the said sink
ing fund is fully paid for the fiscal year in
clared.
The government of the United States"
the last provision reads, thereby declares
that 1t stands seized and possessed in it's
own right of all the property to which this
act relates, the control and administration
of which is provided for in this act and in
the laws which are herein amended; that
it holds said property a means and in
strumentality of national government and
of interstate and international commerce;
that it is necessary, in the present condi-
ton of said property, and for the execution
of the original purposes of the grants of
property. credits and powers to the Union
Pacific Railroad Company and the Central
Pacific Railroad Company, these said COM
panies should be hereafter consolidated and
conducted as a through line from the east
ern terminus of the Union Pacific railroad
to the Pacific ocean. and in such manner as
Congress shall hereafter provide; that it is
necessary for the accomplishment of these
purposes CT government and for the welfare
of the people, that the authority of the
United States over said through line of
railway should be maintained as it has
heretofore existed, and is enlarged and con-
frmed by this amendatory act; that the
government Will preserve, as far as is con-
sistent with justice and the general well
fare. this property, for the payment of all
lawful demands of the creditors of either
OF the said railroad companies, and when
the same is freed from debt will admit the
owners of stock in each company upon
their compliance with this act to share, ac-
cording to the just value of said property
al, in prOncrton n the stock bol6 J,xya Oh,