St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1896-02-15
PURCHASE BY vANDERBILTS OF
THE SIOUX CITY & PACIFIC
STRONGLY OPPOSED
BEFORE SENATE COMMITTEE.
COILS p. HUNTINGTON SAYS THE
ROADS SHOULD BE SOLD
SEPARATELY.
A New Company to Acquire the
Properties at a Fair Estimated
Valuation.

WASHINGTON, Feb. 1.-THE hear
ings by the committee on the Pacific
railroads was continued today, with Mr.
Combs, an attorney for the Credit Com
mutation company, en- the stand. He
objected to the sale of the Sioux City
& Pacific railroad except on condition
that another road be built by the gov
eminent. He said the Sioux City road
was the only outlet from Fremont, the
terminus of the Elkhorn road. which
was the only competing line of the
Union Pacific running east and west,
and suggested this as the reason for the
desire to secure the sale Of the Sioux
City. The Vanderbilts would thus come
into the control of about one-tenth of
the railroad mileage of the United
States, and about per cent of the as
sessed property valuation of the world,
so that they would be able to combine
with ninety-nine other families in like
fortunate circumstances, and say to
the remainder Of the population: I'VE
own the earth; you get off,"
Hon. David Littler, speaking for the
Chicago 81 Northwestern, replied briefly
to Mr. Coombs. saying there was moth
ing in Mr.. COMBS plea except that he
wanted the United States government
to step in and help a lot of bankers
who had made a bad investment at
Sioux City, out of their dilemma. Mr.
Littler also asserted that the Chicago
q Northwestern proposition to buy the
Sioux City line had been made entirely
independently of the propositions as
made in behalf of the Union Pacific
and Central Pacific
c. P. Huntington took the stand next.
He said the promoters of the line
WE'RE REGARDED AS CRAZY.
When the road was completed. the
assets were not sufficient to meet the
obligation Of the road by several mill
ions. The road had benefited many and
injured none. Among other things it
had vastly enhanced the value Of the
lands through which it passed Reply
ing to the charge that the Central
Pacific had not shown a disposition to
cooperate with the Union Pacific so as
to form continuous line, ne said that
the charge was without foundation.
Continuing, he denied with emphasis
the assertion that compulsion was used
to get the California business for the
southern racine, and said that COM
pany obtained it's business by going in
to the competitive field for it, He as
| serted that the Union Pacific had it.
self initiated the competition on the
oregon Short Line, which was owned
by the Union Pacific, and by charging
eXorbltant rates on business done for
the Central Pacific, while the Central
Pacific had stood by the Union Pacific
on all through business where it could
do so without injuring the public well
fare. Mr.. Huntington expressed the
| opinion that consolidation of the
Union Pacific and Central Pacific, as
contemplated by Senator Thurston's
bill, would be injurious to the interests
of the owners of both lines. In con-
Guiding his statement, Mr.. Hunting
| ton said that while this government
| obligation was not a personal debt of
| his, he felt as great interest in it as
| if 1T were such, and he was anxious
! that an advantageous arrangement
! should be made for all parties. He sug-
gested that the debt should be re-
funded at the rate of ~ per cent, and
provision made for the payment Of a
fixed sum, say every six months, I'M
! til the debt should be wiped out.
PLAN OF REORGANIZERS.
Wilson S. Pierce, acting for the re-
| organization committee Of the Union
Pacific railroad, submitted to the SEN
ate committee on Pacific railroads the
reorganization committees draft Of a
| bill for the reorganization of that road
| This bill provides for the appointment
by the president, subject to approval
OF the senate, of a commission of three
members to investigate, determine and
report to the president the fair cash
value of the claim and lien of the
| United States; authority to the com
missioners to subpoena and examine
witnesses and to have process OF
courts: the report of commissioners OF
q majority subject to the approval Of
the president is to be conclusive as tt
the sum which may be paid for the
claim and lien of the United States
the secretary of the treasury upor
such payment to execute the instru
ment of assignment of the lien anC
claim, reserving a sinking fund; au
thority to purchasers to organize
new company, empowered to acquir,
and operate the lines and the property
of the railway company with suci
corporate powers as are necessarily in
Volved; the repeal of the provision
of prior acts which would be inappli
cable to the reorganized company un
der the new conditions, and reserv
Ing the governments preferred RICH
for the transportation of mails, troops
munitions of war, etc; authority an,
direction of the attorney general il
default Of payment of the amour
fixed by the commission, to foreclos
the lien of the government and upol
sale to bid the amount of the indebted
ness to the United States reserya
ton of the remedies to the Unite
States. and of the power to alter