The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-01-21
HUNTINGTON HAS
A NEW SCHEME.
Statesmen Being Sounded
on the Debts Of Pacific
Railroads.
LOBBYISTS GROW BOLD.
Advocating Measures to Extend
the Time of Payment Fifty
Years.
VARIOUS PLANS OF EVASION.
California Congressman United in the
Fight Against the Funding
Bill.

WASHINGTON, d. c., Jan. D.-The
Huntington lobby has at last shown its
hand. The CALL correspondent learned
tonight that John Boyd, chief lobbyist of
the Southern Pacific, is sounding" Sen
ators and Representatives on proposition
that will be sprung soon. The railroad
viii have several measures, and will put
them forward one at a time.
The first will be to extend the debt for
100 years. The second will be to pay in
stallments of principal and interest at
stated periods until both principal
and interest are fully paid (as under
the Reilly bilD. II these measures
shall fail, or it shall appear that they
are likely to fail, after being proposed to
Congress. they Will come forth with their
last proposition. Their last resort will in
brief be proposition to give the Govern
ment first mortgage on both the Union
and Central Pacific, the bonds to run for
fifty Tor perhaps 1907 years at per cent in
terest. The present first mortgage bond
holders would then hold the second mort
gage-changing places with the United
States. The Pacific railroads believe that
the first mortgage bondholders will be
willing to do this. A United States Sena-
tor with whom John Boyd talked to-day
says that they base their belief on these
premises:
First, the bonds are not scattered among
tom, Dick and Harry" but have been
gathered into the hands of few men-a
syndicate of foreigners-who have got to-
gether for their own protection. They are
fearful that in a suit at law it might be de-
cided that their hrst mortgage is not to
have precedence or prior rights Tin fore
closure proceedings) as against the Gov
ernment's second mortgage. They may
be and probably are willing to
take q second mortgage, the Southern
Pacific Railroad OF Arizona, on behalf of
the Central Pacific, becoming surety for the
payment of the principal and interest of
these second mortgage bonds, and the
branch lines of the Union Pacific (kansas
Pacific and others) guaranteeing their
payment on behalf of the Union Pacific.
They believe that the earnings of the
Union and Central Pacific in fifty (or 1907
years time viii be sufficient to meet the
interest and principal on both the first and
second mortgage bonds.
1t is believed the Southern Pacific and
the branch lines of the Union Pacific will
be willing to become sureties and that the
present first mortgage holders will accept
this proposition rather than risk losing
their money by decisions of the courts.
The Senator said:
Il am pledged to vote against any ex-
tension OF this debt, and shall do so. At
the same time 1 must admit that this lat
est proposition OF the Pacific roads will ap-
peal TO Congress as a most business-ike
way out of the difficulty 1t is certain
that Congress will pass no Government
ownership bill. The Democrats are almost
a unit against it, and many Republicans
also will argue that if we can secure first
mortgage on the roads, even if we must
extend the debt for another period of fifty
or 100 years, we should do so rather than
run the risk of sacrificing a large part of
the whole. The railroads proposition is
certainly plausible one, and l predict
that it will meet the approval of Congress" !"
Many members of Congress are greatly
incensed against Mayor Sutro for sending
circulars here insinuating that Congress
men might be influenced by Huntlngton's
sack. They are all asking about Sutro
One member said if the Mayor was here
he would break his cane over his head
Members Of Congress from California diff
fer as to the effect Mayor Sutro's circulars
are having. Some contend that they make
the funding bill opponents appear as
socialists and 'sand-lotters, while others
declare that the Sutro literature is attract
ing general attention TO the subject, and
in this way will accomplish good.
The House Committee on Pacific kail-
roads to-day considered two propositions
presented by representatives of the Union
Pacific Company, and decided to hear
arguments on both propositions Monday
next Those desiring to be heard on any
proposition relating to the Central Pacific
are invited TO be present on that day The
committee will fix the time for hearing
such further arguments as may be pre-
sented by both companies. The commit
tee will hold daily sessions after next
Monday
Representative Mcguire was present to-
day. He states that several members of
the California delegation, including him.
self, desire to be heard on that occasion,
and also other citizens of California.
Grove i. Johnson stated that ex-Con-
gresham Thomas J. Geary of California
had expressed desire to address the COM
mittee Monday Mr.. Johnson understood
that both the Union and Central Pacific
companies propositions would be heard
together.
Mcguire asked Cha irman Powers if any
proposition by or on behalf of the Central
Pacific Company had been presented. Mr..
Powers said the Committee on Pacific
Railroads had not received or heard of any
such proposition. Mcguire then said it
had always seemed to him that the Union
Pacific questions were essentially distinct
and ought to be considered and heard sep
arately.
johnson then turned to Mcguire and