The San Francisco call., 1896-04-21

plan OF legislation indicated in that reso-
luton, but because there is more of detail
IN that formula than is necessary to de-
velop the sense of the Senate as to the
merits OF the measure upon which ask
for instructions to the Committee on Pa-
clfic Railroads. To reach the real sub
stance of what am contending for now
offer this substitute:
Resolved By the Senate, That the Committee on
Pacific Railroads is instructed to report the
same to the Senate with such amendments II
any as they choose to offer thereto, "a bill re-
lating to the jurisdiction OF the Court OF Ap-
peals OF the District OF Columbia"
Be it enacted that the Court OF Appeals OF
the District OF Columbia is hereby given Juris-
diction over any and all suits that may be
brought by the United States to enforce or OBJ
tain other relief upon any lien or liens on any
railway or railways or on any property belong
ing to one or more railway corporations, wher-
ever such property may be situated.
Sec. 9. That separate liens upon different
railways or railway properties may be enfor ced
by the United States in the same suit when
such railways constitute, or were intended to
constitute, through line, or part of or con-
nected with through line or general system
of railways. The court shall have power to
make such orders concerning the sale of said
protection OF all parties concerned.
Sec 8. That said court shall have power to
issue process, means and final, which shall run
into any district and be served other like
process by the Marshal of such district and to
enter all proper orders, DEGREES and mandates,
including orders, DEGREES and mandates for the
payment to the United States of any deficiency
arising upon sale under such lien.
Sec. 4. That holders of liens on any such
Ic ho nod
such suit or may intervene if not made par
ties, and said court may order any and all
proceedings by any party or parties in other
courts having jurisdiction OF part only of the
property involved to be discontinued or stayed
until the termination of such suit by any dis
trict
And said committee is further instructed to
report, in connection with said bill, an origi-
nal bill, or amendments to the foregoing bill,
which will embodv substantially the following
provisions:
First-To pay for the refunding of the first
mortgage bonds and subsidy bonds of the
Union Pacific and Central Pacific railroad
companies outstanding in the hands of per-
sons not indebted to the United States in
per cent bonds of the United States, to run
thirty years and subject to call at the pleasure
of the Government.
Second-To provide for sinking fund to pay
the companies, respectively.
Third-To provide for the priority of the
United States in the payment OF any sums
that shall be due the Government out of the
net receipts OF such company without the de-
duction from the sinking fund.
Fourth-To provide for the taking possession
OF property OF every kind and franchises of
each OF said companies in accordance with the
provisions OF existing law, upon any default of
said companies respectively that is provided
for by law; such property and franchises to
inure to the use of the United States.
Fifth-To remove from office the presi-
dents and vice-presidents and treasurers OF
each OF said companies and to provide for the
exercise of their power by officers appointed
under an act TO be reported by the committee
under these instructions. 81 a- 49, ts55
Sixth-To provide for q board of directors to
direct, control and manage the said companies
under their existing powers as amended, who
shall act for each company, but shall operate
the two railroads and their branches as one
continuous system, such directors to be ap-
pointed by the President of the United States
and confirmed by the Senate. and to have and
exercise all powers conferred by law upon each
OF the present board of directors. including the
repeal or amendment of existing bylaws
OF said companies respectively.
Seventh-To provide for the proper adjust
each railroad in all matters that relate to
through transportation from one road upon
the line of the other.
Eighth-To provide for the appointment of
trustees for each road by the President of the
United States and the manner of their account
ing.
Ninth-To provide for the payment of the
debts OF each company out of its net income in
subordination to the debts owing 10 the United
States.
Tenth-To provide for the cancellation of
stock OF each company and reissue of stock
graduated according to the actual value of the
property of each company.
Eleventh-To provide for the continuance OF
the control of Congress over the two COM
panies and their property under corporate
powers and systems now existing ss they shall
be amended from time to time or until Con-
gress shall otherwise direct.
Twelfth-To provide for the appointment of
all officers not herein named and the employ
ment of all persons in the service of the corpo-
ration by board of directors or under their
direction, without interference, advice or sug-
gestion of any officer of the United States or
OF any State.
Thirteenth-To provide that any lawful debt
or any damages incurred by either company in
the course of its current business, when the
same has been paid, shall be charged to the
the gross income of such company; but no
debt shall be created by the directors or agent
or employees of the companies. or either of
them, nor any damages arising out of their
conduct or transactions shall in any case be-
come debt, obligation or liability of the
United States.
"In the course of legislation on this SUBJ
ject. SO far as have seen, the bills
that have been offered propose a total
change of the existing laws as they affect
the rights of the United States, the
creditors of these companies, and stock
holders and bondholders, and such altera-
ton is provided for in most elaborate and
complex legislation. Many of the pro-
posed features of all these bills affect in a
most questionable way the vested rights
that are threatened with violent dis
turbance.
"Ali of these proposed measures call for
radical changes in the charter powers of
these corporations as being necessary be-