Red Lodge picket. [volume] (Red Lodge, Mont.) 1889-1907, 1896-12-26
WRECKERS OF RAIL WAYS
SENATE TOOK UP PETTIGREW'S S
RESOLUTION TO BUY NOTES.
Allegation That Government Goes
Begging While British Bond
holders Get Dividends.

4 were filled IN anticipation OIL nearing
| Senator Vests speech on the Cameron
| resolution, and disappointment was eX-
| pressed when it became known that he
would not continue his remarks, cut off
| by objection yesterday.
| The urgent deficiency bill was reported
| from the committee with i minority re
| port. 1t carried $SS4,SS most of which
was to continue the work Of the navy de-
| partment.
| Senator Pettigrew called up his resolu-
| ton to appropriate $4,000 900 to take up
| the trust notes of the Union Pacific rail
way. He believed the road was not in
| solvent, and the floating debt was Gre
ated for the purpose of complicating the
/ government liens.
Senator Pettigrew pointed out that in
1881. while the Union Pacific road had
| SIS. .G00,o 600 of stock of branch roads in its
! possession, with earnings sufficient to
pay expenses, to pay the interest on first
mortgage bonds, and to furnish Il sur
plus, this floating debt of $S,0000oo was
| created.
| 1T turns up in the hands of officers
and directors and representatives Of the
/ iot''t, Setitt Ilc anu tOlitS tliI StOCh5
| of branch lines are taken by these otIi-
GERS and placed with Drexel, Morgan &
| CO. as security for this floating debt.
| Now, it was we'll for the committee 10
| ascertain how this floating debt came
/ into existence, the consideration received
| for it, and everything connected with It.,
| in view of the fact that the road was
earning its operating expenses. interest
on these bonds and a surplus besides. I.
The senator declared that these peo-
PIE propose to set control Of $93000,000 Of
stock and bonds which control the
branch lines of the Union Pacific, indie
pendent absolutely of the rights and in
terests Of the United States government.
He said the stocks and bonds are worth
$}5, 900 today upon = the market.
Their apparent purpose, he said. was to
divert the business of the branch lines
property upon which the government
holds this security almost worthless. At
this juncture prompt action was requir-
ed in order to prevent the accomplish
ment Of this purpose, which was in line,
Mr., Pettigrew said. with the dishonest
and corrupt acts of these men through
q lifetime. The senator said an adver
tisement had been placed in the Wall
Street Daily News, signed by j. G. Moore,
James W. Alexander and John T. Ad-
ans, a committee for carrying out this
purpose. He understood the committee
represented the great estates which con-
troll the Union Pacific railroad, which
have made great fortunes out of the
road. and have SO managed it as to
swindle the sinking fund and cause
great scandals in relation to the road.
A part Of the plan was to have receivers
appointed in the interest Of the men who
controlled the road, and better facilitate.
the defeat Of the governments claims.
buried i'm Fraud and Crime.
Senator Platt said the Indebtedness of
the Pacific roads amounting to S15,0Oo,0Oo
was in danger of being lost, and yet the
fact seemed to interest no one.
Senator Morgan said the statement
made by Senator Pettigrew Of
most grave character. The subject mad
been so deeply buried in fraud and crime
as to be almost beyond the possibility of
Intelligent consideration. AS 10 the pend
ing funding bill, Senator Morgan sain ne
opposed it and when it came he would ln-
sist on the fullest latitude of debale. de
particularly desired to see the interests CT
the people of the Pacific coast pro- tcted
against this monopoly and against q
combination of those two vast influences
the Union Pacific and the Celtral I'a
citic-under private control. No section Of
the country had been so bound ;.nd rlaGc
suhservient as, the Pacific coast BY this
gorgOn of monopoly. He believed the
pending funding bill should be rec Oln. nit
ted to the committee and a more adequate
remedy presented. The Union Pacific had
enough in its treasury to pay the interest
on the first mortgage bonds and yet it
came to congress as a bankrupt dnI Il
mendicant for pity. 1t was not onll Fay
ing interest on its own bonds, but it was
paying dividends to British bon 1hol7ers.
These roads were pursuing what had be-
come a policy in railway management N
the United States-the running down and
wreckng of railroads in order to marip-
ulate them.
Not Interpreters
Senator Vest interpOsed at this polnt
with Il question the meaning of :he
president in his recent message that un-
less congress acted on this Pacific rail-
way question the executive branches
would act by January l. Mr.. Morgan
gave a deprecatory gesture and said:
Now, in all Egypt there was only enc
man. and he was divinely inspired. who
could interpret the dreams of Pharaoh
The senator ought not to ask me to in
terpret the presidents message. If any
man is capable Of interpreting that mes
sage it is the senator from Missouri. L
am not stopping to interpret the mes
sage
Senator Vest, with the message in his
hands desired a more exact answer, and
proceeded to read the presidents words.
but he was cut off, amid laughter, by
Senator Morgan'S earnest rem AK: Il
wish the senator would not bother me
with that message.
Senator Morgan proceeded at cOnsi1 1er
able length, urging that it was of supreme
Importance that these roads should not
| fall into private hands. particularly the
hands of foreign bondhoders. 1t Was
coming to the point that an American
stockholder in an American railroad as
| a curiosity who ought to be put in a SIDE
show.
Senator Gear interrupted, citing the IN
stance of an American road, 1850 miles
long not only owned by Americans, but
by American women who held a majori-
ty of the stock And who owns the
bonds?' inquired Senator Morgan. SHOW
me the man who holds the bonds and l
will show you who controls the road.
Ii was but a few minutes before tie eX-
| piration Of the morning hour when Mr.
| Morgan closed.
| other Business.
| Senator Gear spoke briefly. urging
| sDeedv action on the Pacific railroad
| question. and saying he would seek to
| secure some headway Immediately after
| the holidays. He announced that If a
quorum of senators was here during the
recess. meetings would be held to inquire
| into the questions which had been raised.
| Senator PettigreW's resolution was then
referred to the committee on Pacific rail
| roads.
/ Senator Call secured adoption Of the res
! olution requesting the secretary Of state
| for information as to the killing of Chas.
| Gavin, a United States citizen, in Cuba.
u lin