The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1896-12-26
WRECKERS OF RAIL WAYS
SENATE TOOK UP PETTIGREW,s
RESOLUTION TO buy NOTES.
Allegation That Government Goes
Begging While British Bond
holders Get Dividends.

were filled in anticipation of hearing
Senator Vests speech on the Cameron
resolution, and disappointment was ex-
pressed when 1T became known that he
would not continue his remarks, cut off
| by objection yesterday.
The urgent deficiency bill was reported
from the committee with a minority re-
port. 1t carried 1854. $50, most of which
was to continue the work of the navy de-
partment.
Senator Pettigrew called up his resolu-
ton to appropriate $4,000 600 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
1891, while the Union Pacific road had
$2S, 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 a sur
plus, this floating debt of IS, 900. 600 was
created
1T turns up in the hands of officers
and directors and representatives of the
road" said he, land bonds and stocks
of branch lines are taken by these Off
GERS and placed with Drexel, Morgan &
Co. as security for this floating debt.
Now, it was we'll for the committee to
ascertain how this floating debt came
into existence, the consideration received
for it, and everything connected with 1t,
in view of the fact that the road was
earning its operating expenses, interest
on these bonds and a surplus besides"
hot
pie propose to get control Of 1893, 900 900 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
| S35, 100000 today upon the market.
Their apparent purpose, he said was to
divert the business of the branch lines
to other roads, and thereby make the
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
a lifetime. The senator said an adver-
| tisement had been placed in the Wall
| Street Daily News, signed by ]. c.. Moore,
| James W. Alexander and John f. Ad-
ans, 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
IT, TIT 81.
controlled the road, and better facilitate
| the defeat of the governments claims
| buried in Fraud and Crime.
| Senator Plat said the indebtedness OF
the Pacific roads, amounting to 5000, 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 was or a
most grave character. The subject mad
| been so deeply buried in fraud and crime
al to be almost beyond the possibility OF
intelligent consideration. AS 10 the pend
| ing funding bill, Senator Morgan said ne
opposed it and when it came he would III
sist on the fullest latitude of debate. I1e
particularly desired to see the interests q
the people OF the Pacific coast procsctec
| against this monopoly, and against &
| combination OF those two vast influences
| the Union Pacific and the Central Pa
| cif1c-under private control. No section o.
the country had been so bound Ind i1adC
| subservient as the Pacific coast by thii
| gorgon Of monopoly. He believed tn,
pending funding bill should be rec lnjnit
| ted to the committee and a more adeuuat,
| remedy presented. The Union Pacific haC
enough in Its treasury to pay the interes
on the first mortgage bonds, and yet 4
| came to congress as a bankrupt and {
mendicant for pity. 1t was not only ray
| ing interest on its own bonds, bat il wa!
paying dividends to British bon iholders
These roads were pursuing what had be
come a policy in railway management II
the United States-the running down an,
wrecking of railroads in order to martp
ulate them.
Not an Interpreter.
| Senator Vest interposed at this pOin
with a question as the meaning Of IN
president in his recent message that un
less congress acted on this Pacific rail
| way question the executive brancnes
| would act by January 1. Mr. Morgan
gave a deprecatory gesture and said
Now, in all Egypt there was only ON
man, and he was divinely inspired VIII
could interpret the dreams of Pharaoh
The senator ought not to ask me 10 in
terpret the presidents message. If an.
man is capable of interpreting that mes
sage it is the senator from Missouri.
am not stopping to interpret the mes
sage
Senator Vest, with the message in nj
hands, desired a more exact answer, an
proceeded to read the presidents words