The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1896-04-28
MINORITY'S SUPPORT
Arguments Against the Committee Re-
port of the Pacific Railroad Bill.
TO PREVENT MoNoPoLIEs
The Main Line of the c. p. and u.
=. should Be United. So says
representative Hubbard-va-
rious Reasons Given.

Washington, April 27.-The minority
report ON the Pacific railroad bill was
submitted to the house to-day by
Representative Hubbard of Missouri.
IL deals exhaustively with the finan-
cbal conditions OF companies concerned
In the proposed funding plan 1t ar
sues that the majority bills should not
be adopted for three reasons: First.
the committee has not learned enough
or the affairs of the debtor companies
TO be able to tell the house what IL
best to do Second, the companies
made offers before the committee and
are undoubtedly ready 10 concede
terms very much better for the gov
eminent than those embodied in the
Dill. Third, the propositions in the bill
are neither good nor safe for the gov
ernment
Under the first head ii is contended
that most OF the parties who appeared
In the committee were Interested in
the resolution; that every disinterested
voice advocated foreclosure proceed
ings. not with the view that the gov
eminent should operate the railroad.
out TO protect the government as a
preliminary step.
In regard to the Central Pacific the
report says: 1T was advanced before
tne committee, as an open secret, that
the Central Pacific Is saved from de-
fault only by the purchase of its SUBJ
sidy bonds by its friends who carry
them without interest TO prevent their
presentation to the government for
payment. pending this settlement. AS
10 which Of the two companies showed
the most strength-the negotiation Of
iering the same terms To each-was
carried 10 point where the Central
broke down and the Union stu stood
up; Under the Powers bill the princi-
pal Indebtedness would be reduced to
about $23,000.000. while under no other
plan could ii be less than s35. 00O. 600
exclusive OF the S20000.0 900 preferred
stock, IL that were taken Instead of
that amount of second mortgage in
stallment bonds. So that most OF the
debt. all of the time, and ali OF the
oebt, most of the time. would be se-
cured as part of a first mortgage in
stead or a second mortgage, all the
time, as proposed in this bill.
hubbard holds that for the protec-
ton OF tho interests of the government
uhese conditions are necessary to any
Dill: First, the main lines OF the Gem
tral and Union Pacific should be united
for the support OF the common security
winch the government must take on
both. Second, the United States should
never again rely upon a Junior encum-
orance. Third. bill which purports
10 constitute contracts by the United
States with other parties should deal
with foundation title and the holders
Of them.
Additional argument Is made against
the committee bill that IL Is In conflict
With THE principles of the antitrust
law and will create two of the greatest
railroad monopolies In the country and
That IL Is contrary to the interests of
california and that of Nebraska, which
require that stock be issued for values
>nly. IL Is said that Union Pacific re-
committee. having or
sanized the first mortgage bonds. Is
pressing for foreclosure. which would
,ar the governments secondary lien
70 prevent this the Morgan Brice bill
y recommended.