The Indianapolis journal., 1896-12-23
SENATE PROCEEDINGS.
Mr. Pettigrew's Attack on racine
Railways and BOndhotders.

WASHINGTON, Dec. 22.-The Senate was
unexpectedly diverted to-day from Cuba to
the Pacific railroads. An unusually large
crowd was in the galleries. anticipating
that Mr.. Vest would continue his speech,
begun yesterday, on the attitude or MI.
OIney towards the Cameron resolution the
interest this had awakened was shown by
the presence in the diplomatic gallery of
First Assistant Secretary of State Rock
hill who is next i'm rank to Mr.. Oney i'm
state affairs. and who has had special
charge of the reports coming from consuls
i'm Cuba The foreign delegation also was
well represented Soon after the session
opened Mr. Pettigrew, of South Dakota,
called up his resolution relative to the trust
notes of the Pacific railroads. The senator
made savage onslaught on the Pacific
railroad system in general. charging that
a combination of private interests was seek
ing TO absorb the roads and close out the
government. This opened the entire ques-
ton. and Mr.. Morgan, of Alabama, fol-
lowed with a bitter arraignment of the Pa
cifc roads, charging them with fraud ana
crime on gigantic scale. The speech
lasted until shortly before 2. O'Clock. when
the morning hour expired, thus sending
over the question until after the holidays
ton asking the secretary of state for in
formation relative TO the killing of Charles
Gavin. an American citizen. by the SPAN
ish forces in Cuba. Further than this the
session was uneventful, and the Senate ad-
journed until after the holidays.
Chaplain MilburnS opening prayer at
noon referred to the happy prospect that
between the governments of Great Britain
and our own country there should hence
ror and hell of war, but the rule of reason
and right feeling. God grant that the ex-
ample set by these nations may be initiated
and followed by all the nations of the
earth, that the time shall speedily come
when the sword shall be beaten into the
plowshare and the spear into the pruning
hook
The urgent deficiency bill was reported
and passed with minor amendments. IL
carries $sS4,SS6, the larger part of which is
for the continuation of the work of the
Navy Department.
Mr.. Pettigrew then called up the resolu-
tion appropriating Sl0000.0 900 to take UP the
trust notes of the Union Pacific Railroad
He said that this step imperative 10
protect the interests of the government
against a scheme of those who held the
notes. whose purpose was TO absorb the
branch lines of the Union Pacific. He de-
clared his belief that the Union Pacific was
not and il not insolveiit, and that the float
ing debt was created for the express pur-
pose of complicating and embarrassing the
government liens Mr.. Pettigrew pointed
out that in 1891, while the Union Pacific
read held IS 900 of the stock OF the
branch roads in it's possession with earn
ingS sufficient to pay expenses, pay interest
on the first mortgage bonds and furnish a
surplus. this floating debt of S.. 600 600 was
created. 1t turns up in the hands of the
officers and directors and representative,
OF the road" ne said and the bonds and
stocks of the branch lines are taken by
these officers and placed with Drexel MOI.
gan * Co. as security for this floating debt
Now. Ii is well for the committee to ascer-
tain how this floating debt came into exist
ence, the consideration received for it, and
everything connected with it, in view of the
fact that the road was earning its operat-
ing expenses. interest on its bonds, and
surplus besides
PLANS OF ALLEGED WRECKERS.
The senator declared that "these people
propose TO get control of $93. OOOO0 Of
stocks and boads which control the branch
lines of the Union Pacific. independent abb
solutely of the rights and interests of the
government. He said these stocks and
bonds are worth $35. COO 600 to-day upon the
market. Their apparent purpose. he said
was TO divert the business of the branch
lines to other roads and thereby make the
property on which the government holds
this security almost worthless AT this
juncture prompt action was required in
order TO prevent the accomplishment of
this purpose, which was in line Mr. Pet
rupt acts OF these men through a lifetime
The senator said an advertisement had
been placed In the Wall Street Daily News
signed by j. G.. Moore. James w. Alexau-
der and John +. Adams. u committee, for