The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-12-23
FRAUD DIRECTLY CHARGED.
DONE BY MR.. MORGAN, OF ALA
BAMA.
CUBAN QUESTION LAID ASIDE.
Expectation OF Debate Between
Vest and Hill Drew Ont a Large
Audience.

Cuba to the Pacific railroads An I'M
usually large crowd was in the gal
leries anticipating that Mr.. Vest would
continue his speech begun yesterday
on the attitude of Mr.. Olney to-
ward the Cameron resolution. This in
terest was shown by the presence in
the diplomatic gallery Of First Assist
ant Secretary of State Rockhill, who is
next in rank to Mr.. Olney in state af-
fairs, and who has had special charge
of the reports coming from cOnsuls in
Cuba. The foreign delegation also was
well represented. Soon after the ses-
sion opened Mr.. Pettigrew, of South
Dakota, called up his resolution rela-
tive to the trust notes of the Union
Pacific railroad. The senator made
savage onslaught on the Pacific rail-
road system in general, charging that
a combination of private interests was
seeking to absorb the roads and close
out the government. This opened the
entire question. and Mr.. Morgan (Ala.)
followed with a bitter arraignment of
the Pacific roads, charging them with
fraud and crime On a gigantic scale.
The speech lasted until shortly before
o'clock, when the morning hour ex-.
pred, thus sending over the Cuban
question until after the holidays.
Mr.. Call secured the adoption of
resolution asking the secretary of
state for information relative to the
killing of Charles Gavin, an American
citizen, by the Spanish forces in Cuba
Further than this the session was un-
eventful, and the senate adjourned
until Jan. s.
When Mr.. Pettigrew Rep., 8. d.
called up his resolution appropriating
$lt,OO0,000 to take up the trust notes
of the Union Pacific railway, he said
TINS step was imperative to protect
the interests of a government against
a 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 Pa
cine was not, and is not insolvent. and
that the floating debt was created for
the express purpose of Completing and
embarrassing the government lines
Mr.. Pettigrew pointed out that in 1881
while the Union Pacific road had $2S,-
eO0,000 of the stock Of the branch roads
in its possession, with earnings suf-
f1clent to pay expenses, pay interest on
the first mortgage bonds and furnish
a surplus. this floating debt of SIS, 00O, 600
was created.
1t turns up in the hands of the Of
hcers and directors and representa-
tives of the road" said he. land the
bonds and stocks of the branch lines
are taken by these officers and placed
with Drexel, Morgan & Co. as
security for this floating debt Now, it
is we'll for the committee to ascertain
how this floating debt came into ex-
iStence, the consideration received for
it and everything connected with it.
in view of the fact that the road was
earning its operating expenses, inter.
est on its bonds and a surplus be-
Sides
The senator declared that these
people propose to get control of $685.
eO0000 of stocks and bonds, which con-
troll the branch lines Of the Union Pa
cifie, independent absolutely of the
rights and interests of the government"
He said these stocks and bonds are
worth 600 today upon the mark
ct. Their apparent purpose. he said
was to divert the business of the
branch lines to other roads and there
by make the property upon which the
government holds this
SECURITY WORTHLESS.
At this juncture prompt action was
required in order to prevent the accom-
plishment 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 advertisement
had been placed in the Wall Street
Daily News, signed by j. G. Moore,
James W. Alexander and John Il.
Adams, committee for the purpose
of carrying out this purpose He UNI
derStood this committee represents the
great estates which control the Union
Pacific railroad which have made great
fortunes out of the road, have so man
aged it as to "swindle the sinking
fund' and caused great scandal in re.
lat1on to the roads. A part of the
plan was to have receivers appointed
in the interest of the men who con.
trolled the road and better facilitate
the defeat Of the government claims.
Mr.. Gear (Rep, TO-, chairman of
the committee on Pacific roads, asked
If Mr.. Pettigrew 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 com,
binatiens and discrimination in rates
which made the American railroads a
target for criticism Mr. Pettigrew
urged that the government should en-
brace this opportunity for an expert
pnent in government ownership of a
great continental line. He believed the
| government should take possession
and operate the Union Pacific road and
its branch lines.
Mr.. Platt Rep.. Comm spoke of the
imperative necessity of considering the
important question Of settlement with
the Pacific roads. The Indebtedness.
reaching Sis, 000, 900, was in danger Of
being lost, and yet this vast debt, ana
| the peril of it's loss seemed to disturb
no one. He hoped 1t would be one Of
/ the first subjects considered after the
holidays.
Mr.. Morgan Oem, Ala) said the
| statements made by Mr.. Pettigrew
! were of a most grave character. In
| effect they meant that certain indi-
! viduals had made a fraudulent com
/ bination to load down these Pacific
| roads so as to absorb them. 1t was
! difficult for any single mind to grasp
the labyrinth of fraud and rascaIity''
that had made this subject a perfect
'saturnalia of fraud" It was. Mr..
Morgan declared, twin brother to the
Credit Mobilier frauds carried on by
the same methods Of bribery and cor
ruption. The subject had been SO
deeply buried in fraud and crime as
to be almost beyond the possibility of
! intelligent consideration.
AS to the pending funding bill. Mr.
Morgan said he opposed it, and when
| it came up, he would insist on the
fullest latitude of debate. He partic-
ularly desired to see the interests of
the people of the Pacific coast protect
ed against this monopoly, and against
a combination of those two vast in
! fiuenceS-the Union Pacific and the
/ Central Pacific-under private control
| No section of the country had been so
bound and made subservient as those