Evening star., 1896-12-31
PACIFIC RAILROADS
Funding Bill to Come Up in the House
Next Week.
Fate OF THE MEASURE DISCUSSED
Representative Danford Will Fight
1t to the End.
M EN- A n d Nj E 7 II o d S

There will be interesting scenes in the
House next week, when the committee on
rules gives time to the Pacific railroads
committee fer the consideration of the
Powers funding bill. 1t is doubtful If any
representative who is not on the Pacific
railroads committee will have an oppor-
tunity to speak. because all of the time,
which Is limited, has been spoken for, days
ago; or. if any others do speak. they will
be among the Californian delegation. The
fate of the bill affords subject for lively
discussion among the congressman who
have remained in Washington during the
recess. and have little business outside of
department routine to occupy their time.
Will Fight the Bill.
Il will fight this bill as hard as 1 can"
said Representative Danford of Ohio. in
conversation with The Star reporter, but
L have not prepared to make a speech, be-
cause understand the time will all be con-
sumed by the committee which reports the
bill; neither do 1 propose to print any re-
marks. but 1 shall do all else in my power
to kill the bill. / am tired of seeing this
Pacific railroad item carried in our month
ly account of debts. A lot of schemers
started In to beat the government and
they have become rich at their game. Now
1 hope the government will have the good
sense to refuse to hold the bag any longer.
If 1 knew absolutely nothing of the
facts in this Pacific roads case l would be
moved TO vote against the Powers funding
bill by what / know of the men who are
advocating its passage and their methods.
While L was here in the Forty-fourth Con-
gress Huntington came on to fight Tom
Scott. Scott wanted Congress to give HIM
certain ISnd grants, for he wished to paral-
lei the Southern Pacific. Huntington spent
considerable time here. and succeeded in
beating Scott in committee. The power
which Huntington had over Congress at
that time was not one-fourth much as
he Is bringing to bear now for the passage
of the Powers bill. and l am somewhat
afraid that he may win over us.
Huntington's Methods.
When Huntington went into this Pa
cific railroad scheme with Stanford, Hop
kins and Crocker he was running a little
hardware store at Sacramento, and was
worth perhaps 10000. His partners each
had about as much. Today their estates
are reckoned to be worth s2OO.OOO,OOO.
Originally these men, constituting the
Central Pacific company, issued first mort
gage bonds. the payment of which the
federal government guaranteed After
while a law was passed releasing these
bonds from their status as first mortgage
liens, and the company issued a second lot
of bonds that became a first mortgage
lien and were not guaranteed by the fed
eral government. The Indebtedness in
each instance was nearly 10000. 600. Now,
the government has been paying the inter-
est on the debt which ii stood good for,
and the amount has grown to over $780,
0O0.0OO. 1t is this debt which Huntington
wants refunded.
When these bonds that were guaranteed
by the government were sold Chinese la
bor was employed and the road was built
for very little more than the proceeds of
the sale The organizers got rich, but the
government was the loser. If this first
mortgage lien was cleared off the govern
ment might hope to get something out of
the road But with conditions they are
we have little to hope for, and the scheme
which Huntington proposes is rotten clear
through The business OF the Central Pa
cific and the Union Pacific has been
wrecked TO promote other schemes. If the
government will foreclOse now it may get
something: If 1t doesn't il never will get
anything IL will be a great pity if the
funding bill passes.
VIII Settle by March 4.
II am Informed by men who ought to
know that this administration will clear
up the Pacific railroad matter in some way
before March 4, and not leave 1t as leg
acy to the Mckinley administrat ton. Pres
fdent Cleveland and Attorney General Har-
mon have been examining the law on the
case. and If Congress does not do some
thing very promptly they will foreclose the
mortgage and sell the road, whether they
get anything out of the sale or not. They
hnd abundant authority for foreclosure
under the law drafted by the late Allen G.
Thurman while he in the Senate and
j believe chairman Of the Pacific railroads
committee. about the year 1875 The re-
port which Senator Thurman drew up to
accompany the bili was very exhaustive
and was carefully prepared Not the
slightest flaw can be found in the law hut
II Is silent to the court in which fore
closure proceedings shall be brought / be-
heye that II II became necessary to fore
close the suit would be brought In the Dis
trfct courts.
Feeling I'm the House.
II fear the House will pass the Powers
bill II the Senate delays action OIL it or
the opposition undertakes to talk it to
death, IL Is possible the administration NAV
begin foreclosure proceedings at once with
: out waiting any longer on Congress But
In the House, among the members with
whom i have talked on this subject, 1 find
that some are in favor of the Powers hill
as reported by the committee; others will
support the minority report by Bell with
MS amendment providing per cent ex-
tension, instead of per cent on the con-
dition that the companies arrange to Sc
cure the governments debt by a first-class
mortgage on the property. and a great
many more Will vote against both proposi-
lions and advocate immediate foreclosure.