The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1896-12-24
BOTH HOUSES OF CONGRESS
WILL BE SILENT FOR TWO
WEEKS
: PACIFIC RAILWAYS BILL DISCUSSED
Senators Morgan and Pettigrew Made
Bitter Speeches, Charging Fraud on
an Extensive Scale-Legislativ
Bill Passed the House.

hacked and the reserve galleries comfort
ably filed. ...
Minister Hatch of Hawaii was among
the early arrivals in the diplomatic gal
lery. There was considerable disappoint-
rnent when word got about that Mr.. Vest
would not continue his remarks, which
were cut off by an objection yesterday.
The urgent deficiency bill was reported
and passed with minor amendments. 1t
carries 1884, 1856, the larger part of which
is for the continuance of the work OF
the navy department.
Mr.. Pettigrew (rep) OF South Dakota
called up his resolution appropriating
S10OOO,0O0 to take up the trust notes
Of the Union Pacific railway. lie said
this step was imperative to protect the
interests of the government against Il
scheme of those who held the notes,
whose purpose was to absorb the branch
lines of the Union Pacific. He declared
his belief, that the Union Pacific was not
and is not insolvent and that the Heating
debt was created for the express purpose
VI complcating and embarrassing the
government liens. o.
Hr. Pettigrew pointed out that in 1891,
while the Union Pacific had $28,OOO,O 600
NJ the stock of the branch roads in its
possession, with the earnings sufficient to
nay expenses, pay interest on the hrst
mortgage bonds and furnish surplus,
this floating debt of $8,70O,0OO was ere
ated. .
at turns up in the hands Of the officers
and directors and representatives OF the
road" said he, land the bonds and
vtocks of the branch lines were taken
by these officers and placed with Drexel,
Morgan & Co. as security for this float
ing debt. ~, tL-
"Now, it is well for the committee to-
ascertain how this floating debt came
into existence, the consideration received.
for 1t and everything connected with it,
in view of the fact that the road was
earning its operating expenses, interest
on its bonds and q surplus besides"
+ The senator declared that "these peo-
pie proposed to get control of $90,OOO,OOO
in stocks and bonds which control the
branch lines of the Union Pacific indie
pendent, absolutely, of the rights and
interests of the government. He said
these stocks and bonds are worth today
$50, 100000 on the market. Their appar-
ept purpose, he said was to divert the
business of the branch lines to other
q roads and thereby make the property
upon which the government holds this
security almost. worthless. At this
: order to prevent the accomplishment OF
this purpose, which was in line, Mr.. Pet
tigrew said, with the dishonest and cor
rupt acts of these men through life
time. I-. ......-...
The senator said an advertisement had
been placed in the Wall Street Daily
News, signed by j. G. Moore, James w.
Alexander and John #. Adams, n COM
mittee for the purpose OF carrying out
~. 10 nd 40
mittee represents the great estates which
control the Union Pacific Railroad. which
have made great fortunes out of the road
and have so managed 1t as to "swindle
the sinking fund" and caused great scan
dal in relation to the roads.
A part Of the plan was to have the re-
ceiyers appointed in the interest of the
men who controlled the road.
Mr.. Gear (rep.) Of Iowa, chairman of
the committee on Pacific railways, asked
If Mr.. Pcttigrew favored the operation
of these roads by the government.
The South Dakota senator answered
that certainly the government could not
possibly manage the Pacific roads worse
than they had been managed. 1t would
do away with the pools, combinations
ands discrimination in rates which made
1.-THE American railways a target for criti-
clsm.
uMr. Pettigrew urged that the govern
ment should embrace this opportunity for
AN experiment in government ownership
of q great continental line. He believed
the government should take possession
and operate the Union Pacific road and
it's branches.
Mr.. Platt (rep) of Connecticut spoke
OF the imperative necessity of consider.
ing the important question Of settlement
with the Pacific roads. The indebted
moss, reaching $115,000,000 was in dan.
ger Of being lost and yet this vast debt
and the peril of its loss seemed to dis
turb no one. He hoped it would be one
of the first subjects considered after the
Holidays.
Mr.. Morgan (dem.) Of Alabama said
the statement made by Mr.. Pettigrew
was of a most grave character. In Of
feet they meant that certain individuals
had made fraudulent combination &c
load down these Pacific roads so as tc
absorb them. 1t was difficult for any
fraud and rascality" that had made this
subject a perfect "saturnalia of fraud.
1t was, Mr.. Morgan declared, twir
brother of the Credit Mobilier frauds
carried on by the same methods of bri
berry and corruption.
The subject had been SO deeply burieC
in fraud and crime as to be almost be
yOnd the possibility OF intelligent consld
Grafton. As to the pending funding bill
Mr. Morgan said he opposed it and wher
II came up he would insist upon the full
est latitude of debate. ..,
He particularly desired to see the in
terests of the people of the Pacific coas
protected against this monopoly anC
against q combination of these two vas
inRuences-the Union and the Contra
Paeihc--under private control. No sec
tisn rof the country had been 80 boun(
and made subservient as those of the Pa
Gihc coast by this monopoly, He believed
Tint pending funding bills should be re
committed to the committee and NOR,
adequate remedy presented. The Unior
Pacific had enough in its treasury to pay
the interest ON the first mortgage bonds
and yet it came to congress- as n bank
rupt and mendicant asking for pity. l
was not only paying interest on its owl
bonds, but was paying dividends TO Brit
ish bondhoders.
These roads were pursuing what ha,
become a fixed policy in railway manage
ment in the United States-the running
down or wrecking of roads in order t
manipulate them.
Mr.. Vest (dem) of Missouri interpose,
at this point with n question as to tn
meaning of the president in his recen
message that unless congress acted o.
this question the executive branch woul
act by January 1.
Mr.. Morgan gave deprecatory gestur