Omaha daily bee., 1896-12-23
SCORE THE PACIFIC ROADS
Senator Pettigrew's Proposition to Buy the
Trust Notes.
MORGAN INSISTS ON VIGOROUS ACTION
Methods of the Past nnd Present Mans
ngcmcnt Viewed In the Light OF
system of Thicying
nnd Rnscnlity.

WASHINGTON, Dec. 22,-The senate was
unexpectedly diverted today from cuba 10
the Pacific railroad. An unusually larse
crowd was in the galleries. anticipating that
Mr.. Vest would continue his speech begun
yesterday on the attitude of MIR. Olncy
toward the Cameron resolution. The interest
this had awakened was shown by the pres
encc in the diplomatic gallery of First AS
sistant Secretary of State Rockhill who is
next in rank to MIR. Olney in state AFFAIRS,
and who has had special charge Of the re-
ports from cOnsus in Cuba. The foreign
delegations also were well represented. Soon
after the session opened Mr.. Peitigrew OF
South Dakota called up his resolution rela-
tive to the trust notes of the Pacific rail-
roads. The senator made a savage onslaught
on the Pacific railroad system in general.
charging that a private interest was seek
ing to absorb the road and close out the
government. This opened the entire ques-
tion and Mr.. Morgan of Alabama followed
with bitter arraignment OF the Pacific
roads, charging them with fraud and crime
on a gigantic scale. The speech lasted until
shortly before 9 O'clock when the morning
hour expired, thus sending over the Cuban
question until after the holidays. Mr.. Cali
secured the adoption of a resolution, asking
the secretary of state for information reia-
American citizen, by the Spanish forces in
Cuba. Further than this. the session was
uneventful. and the senate adjourned for the
holiday recess, lasting until January ..
DISAPPOINTED THE GALLERIES.
The large audience in the galleries was
considerably disappointed over the failure or
Senator Vest to make speech on the presi-
dents prerogatve on Cuban recognition, and
the consequent failure OF Senator Hill to
reply to him.
Il don't know" said Senator Vest, how
the impression got out that | would speak
today. l never said that | would
Il certainly cannot reply to Senator Vest
if he does not speak," said Senator Hill.
The senate became aware of this state OF
affairs early in the day, but the galleries
remained in ignorance during greater part
of the session, many retaining tioir seats
in the belief that they would DE RECALLED
with such a debate as the present session
has not witnessed. Tho diplomatic and pri-
vate galleries Of senators were both well
filed. The Misrepresentation as to the s5ra-
tors intentions grew out of the fact that
he had said that he would call up the
resolution today. He had said nothing OF
any intention to discuss the matter, but
every one rushed 10 the conclusion that he
could have no other reason for calling it
up. The other opponents OF the Cuban reso-
lutions assert that the Missouri senator's
failure to talk is due to the fact that no
has be5n induced to look into authorities
which do not sustain his views of the ques-
tion and that he has concluded TO inVesti-
gate further before speaking. The question
is one requiring close attention TO pnsoahanis
and the constitutional points, and all Teeog-
nize that 1t Is necessary to proceed with
care Senators agreed generally that II vest
and Hill did not sp5ak, the entire cuban
question should go over until after the hoii-
days
We've got them beat" said Senator Hale
setentiously. He spoke for the anti-Cuban-
ties.
ION a vote?" was asked
The reply was in the Affirmative
CHAPLAIN PRAYS FOR PEACE.
Chaplain Milburn In his opening prayer
referred to 1.-THE happy prospect that between
the government OF Great Britain and our gov
ernment there should henceforward be peace;
no appeal TO the horrors and nell OF war, but
the rule of reason and right feeling. God
grant that the example set by these nations
may be initiated and followed by all the
nations of the earth. so that the time shall
speedily come when the sword shall be beaten
into the plowshare and the spear into the
pruning hook"
The urgency deficiency bill was reported as
passed with minor amendments 1t carried
$SS4SS6 the larger part of which Is Tor the
continuation of the work OF the Navy de-
partment.
Mr.. Pettigrew, republican of South Dakota.
called up his resolution appropriating $lO,-
900 900 to take up the trust notes OF tho
Union Pacific railway. lie said this step
was imperative to 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
declared that the Union Pacific was not and
is not insolvent and that the foating debt
was created for the express purpose of COM
plicating and embarrassing the government
liens.
Mr.. Gear republican of Iowa, chairman
of the committee on Pacific roads, asked IL
Mr.. Pettigrew favored the operation of the
roads by the government
The senator answered that certainly tho
government could not possibly manage the
Pacific roads worse than they had been
managed. 1t would do away with the pools,
combinations and discrimination in rates
which made the American railroads target
for criticism Mr.. Pettigrew urged that
the government should embrace this OPP
portunity for an experiment in government
ownership of a great continental line. lie
believed the government should take pos
session and operate the Union Pacific road
and its branch lines.
Mr. Pettigrew pointed out that in 1891,
wblo the Union Pacific road had $2S 900 900
of the stock of the branch roads In It's pos
session, with earnings sufficient to pay eX-
peses, pay interest on the first mortgage
bonds and furnish a surplus, this fioatins
debt OF $1,000 900 wac created. 1T turns
up In the hands of the officers and directors
and representatives of the road" said he,
"and the bonds and stocks of the branch
lines are taken by these officers and placed
with Drexel, Morgan & Co. as security for
this floating debt. Now it Is well for the COM
mittee to ascertain how this floating debt
came into existence, the consideration re-
ceived for it and everything connected with
1t in view of the fact that the road was
earning its operating EXPENSES interest on its
bonds and a surplus besides"
STEALING THE ROAD.
The senator declared that these people
propose to get control of $93. 900 900 of stocks
and bonds which control the branch lines
of the Union Pacific Independent absolutely
of the rights OF the United States govern
ment." He said those stocks and bonds arc
worth $35 900 900 today upon the market.
Their apparent purpose. he said, was to d-
vert the bu usinCss of the branch lines to other
roads and thereby make the property upon
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.. Pettigrew said, with the dshOn-
est and corrupt acts of these men through
a lifetime. The senator said an anvertise-
ment had been placed in the Wall Street
Daily News, signed by j. C. Moore, Jamea
w. Alexander and John i. Adams, a COM
mttee for the purpose OF carrying out this
purpose. He understood this committee rep
resents the greatest estates which control
the Union Pacific railroad, which have made
great fortunes out OF the road and have so
managed as TO "swinde the sinking fund"
and caused great scandal In relation 10 tho