The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-04-22
FUNDING BILL.
Views OF Mr.. Morgan Submitted to
the Senate.

views OF MIR. Morgan Submitted to
the Senate.
WASHINGTON, April 21.-Tbe views
of Senator Morgan on the Pacific rail-
way funding bill were submitted to
the senate today. The senator takes
position decidedly antagonistic to the
bill reported to the two houses and be-
gins by sharply criticising the joint
meetings of the subcommittee of the
two houses for the formulation of the
bill.
Taking up the bill, the senator says
the proceeding proposed is one of bar
gain and sale in disposition of the
property and rights of the government
and is novel because hitherto congress
has not engaged in that line of bust
ness.
Senator Morgan says an examination
of Mr.. Huntingtons testimony taken
before the senate committee on Pa
cific roads will disclose q most extra
ordinary condition of affairs relating
to the Central and Southern Pacific
railroads and other roads connecting
with them, and continues. without at
tempting in this paper to array the
evidence of fraud and peculation which
Huntington's testimony vainly at
tempts to conceal, attention is drawn
to the fact that his evasions of the
truth, as it is thoroughly established,
are his main reliance for misleading
congress in his effort TO capture the
Central Pacific railway, after it has
made him and his three or four as
sociates enormously ricn, on the plea
that his pride impelS him to save the
road from bankruptcy. to which his
fraudulent dealing seems to have
driven it,
He says the bills offered propose a
total change of the existing laws, as
they affect the right of the United
States, the creditors of these compan-
les and the stockholders and bondhold-
ers and such alteration is provided for
in most elaborate and complex legis-
lation.
MANY of the proposed features of all
these bills affect in the most question
able way vested rights that are threat
ened with violent disturbance"
He proposed as a substitute bill
adding a power that is now provided
by law that will enable the govern
ment to liquidate debt that is
falling due on the subsidy bonds the
first mortgage bonds of these COM
panies and to provide for the collec-
ton of the debt paid for interest upon
the subsidy bonds and to apply the
income of the corporations to such
purposes.
Senator Morgan says in continuing
his remarks: 1.-The United States has
a great and active rival in the Can
adam Pacific railway that is virtually
owned by Great Britain. 1t is rival
in commercial competition as we'll as
in governmental service. If we per-
NIT this great national highway to be
severed as is about to be done, the
eastern half with the Oregon Short
Line to pass under the control of a
European syndicate and its west
half to fall into the vortex of
the monopoly which is represented by
the Southern Pacific company, not
only win the plan established in 1925
be lost and the hope of the govern
ment blasted that have cost the coun-
try so much, but the control of our
transcontinental commerce will be
also lost and the government Will be
a beggar at the feet of native and for
eign railroad kings for favors where
we now have rights.
There is plenty of money in the
hands of the people of the United
States. seeking such investments to
take every bond at per cent. that
we will issue to refund and reduce
these railroad debts
He lays down as fundamental the
following propositions:
"Ffrst-That no creditor of those
companies, other than the United
States, has the ability to handle this
great mass of Indebtedness resting
upon these roads so as to preserve the
Just rights of all concerned.
Second-That these charters We're
not granted, nor was government aid
given to these roads, with intention
expressed or implied, that the char
tiers should ever expire or that they
could be destroyed by judicial decree,
or that the control of them as instru-
mentalities of government should ever
be taken out of the hands of congress.
Third-That no court has power to
sell, dissolve or wind up either OF these
any more than a court
could dissolve and wind up bureau
in one of the executive departments
of the government.
He asserts that under fair and hon
est MANAGEMENT the roads are able to
pay their debts.
He charges Mr.. Huntington with di-
verting the earnings of the Central
Pacific to the Southern Pacific.
The senator proposes the joint man
agement of the Central Pacific and the
Union Pacific as a continuous line
under a board of government directors,
saying that until the roads can be
again RENTED to the care of stock
holders under conditions that are safe
to the property, the government and
the people, they should be kept under
the legislative supervision of congress,
when 1T will soon appear whether it
Is best that the government had re-
linquished into private hands the great
duty of controlling this highway of the
rem bile :"