Kansas City daily journal., 1896-04-28
THE PACIFIC RAILROAD BILL.
CONDEMNED ny MINORITY REPORT
SUBMITTED TO THE House.
Missouri Pacific VIII Issue n New
Time Card-Troubic Between East
crn and Western Roads over
n Division of business.

Washington, April 27.--The minority re-
port on the Pacific railroad bill was SUB
mitted to the house to-day by Representa-
tive Hubbard. Of Missouri 1t deals eN-
haustiveIy with the financial conditions ot
tho companies concerned in the proposed
funding plan. II argues that the majority
bin should not be adopted for three rea-
sons
First-The committee have not learned
enough Of the affairs Of the debtor com
panies to be able TO tell the house what
1t Is best TO do.
Seconi-The companies made offers be-
fore the committee and are undoubtedly
ready to coucc5c terms very much better
for the government than those embodied
in the bill
Third-The propositions in the bill are
neither good nor safe foI the govern
mcnt.
t'ndcr the first head It is contendel that
most OF the parties who appeared before
the committee were interested IN the ran
roads. that every disinterested voice ad-
vocatcd foreclosure proceedings, not with
the view that the government should oper-
a.e the roads but TO protect the govern
nent as a preliminary step. II was not
considered whether the government has
a lien on all the assets under the Thurman
act. either in view Of the acceptance OF
that act by the companies or ms a matter
crrmeut otherwise Is in much doubt
The report compares the statement OF
central Pacific earnings made by its at
torrey Mr Tweed. with the statement IN
poors Manual. from lSD 70 1921 IN the
nent was SSiS 90: Poor's 'eo6iesi: IN the
last year Tweeds $4,000; Poor's AS4ii..
The report declares that there Is r2 az, az
because both companies arc iusolveni anu
their undertakings IDLE. that 80 lar as nv
Union Pacific Is concerned, 81 iS an oplloh
TO the companys successors. unlimited IN
time and binding on. the government. N
regard 20 the Central racine, ~ say 4.
was advanced before the committee az sh
open secret that the Central Is saved from
default only by the purchase OF It's SUBSIDY
bonds bv its friends who carry them
without interest to prevent their preseuta-
tion to the government Tor payment pena-
INK this settlement. As to which OF the
the negotiation Offering the same terms 10
each was carried to point Nhefe the
Central broke down and the Union sun
I'nier the Powers bill the principal in
dcbtednoss would he reduced 70 about S-a;-
| eN.Va. while under no other plan coulI u
be- less than S35.V1un. exclusive OF w.
Opl.ppp preferred stock. III that were taken
Instead OF that amount OF second mort
gage installment bonds. so that most Of
the debt all the time and all OF the debt
most Of the time would pe secured as parii
OF first mortgage instead OF y r'coua
mortgage ali the time as proposed IN this
bin"
Assuming tNNf fne SlnkluE lufll lTuNlrlNH
| In the bill would pay the Union facinc
| debt in eighty cone years. the report as
serts that the company would pay, $4,000 :
r1 i'm principal and interest while under
| the rompanys hrst oncr II would have
paid In interest during the same time on
| tS5.VpOnp { per cent bonds, sllS,~eh In"
or.r the committee rejected Is said "a be
| SIS. .Wp go better than the bill under winch
1t is held the Union PaIihc company WI,
'M Mr Hubbard holds that for the protec-
he EfN 4F ne
these conditions are necessary TO the bill:
Fir-t-..The main lines OF the central ana
Union Pacific should be united for N"
support OF ;hc common security which the
governm.ut must take on both.
second Tho United states SHOULD never
| again rely upon a junior ehcumbtaHcr.
Third-A bill which Pnrpor's TO ,onsth,
| tutc contracts by the United states WIN
| ton titles and thy holders Of them.
| There is an exhaustive contention OF q
,bN Kansas pacihc iivisi6n. II Is held that
| with this lien established ami the central
| Pacinc freed from us lease TO the south
| their old prosperity and the ahihty To sat
| izfy the governments claims be assured;
| Keutucy, il Is held that the business
| into which some OF the states has fallen
| of selling charters for extra territorial
| operation, IL a manifest evil"
| The additional argument Is made hsalhst
| the committee hill that IL II in conflict
| with the principles Of the ANTITRUST law;
| and will create one Of the greatest railroad
| monopol-s in the country. that II u con,
! trary to the constitution Of California, ana
| that of Nebraska, which requires that
| stock be issued for values only.
| II is said the Union PaCNc reorganiza-
tiou committee, having assembled three
fuuTths of the first mortgage bonds, Is
pressing for foreclosure, which would bar
| the governments secondary lien. To pre-
vent this the Morgan Brice hill Is recom-
mtudtd.
The report concludes that the secretary
| Of the interior, having held that the gov
! crnmrur claim IL good and should not be
/ discontinued over ~ per cent the attorney
1 ~ neral assisted by Governor lioail"y'
having drawn "a hin 10 determine the gov
/ ernmrut lien. which hill Is supported by
Senators BrtDe and Morgan when the gov
eTumtnt directors have said the roads are
| worth much more united have a plan to
unite them, and assure congress that capi-
| tai H. waiting 10 hid for the property IN
| that shape. II would he unwise 10 pass a
bill which G-larvs the government lien 10
| be- limited when the Thurman act said II
| should not he.