Omaha daily bee., 1896-02-24
THE PACIFIC FUNDING SCHEME.
speech by senator pcttigrcw Dc-
livcrcd In the senate, February IL.

speech by Senator rcttigrcw de-
livcrcd In the SENATE, February IL.
THE stockholders and owners Of the FIRST
| mortgage bonds of the Union and Kansas
Pacific railroads have appointed a COMMITTEES
to reorganize the road and settle with the gov
eminent for its second mortgage upon the
property.
'Thia reorganization committee proposes to
issue one-hundred million OF ifty-year per
cent bonds on about 900 miles of road They
also propose to issue seventy-fve millions Of
preferred stoclo upon this 1000 miles of road
ana assess the present common stock OF tn eSe
companies, watch amounts to $50, 900, 900, at
10 per cent, and thus raise 80 900 900.
The prescribed stock represents nothing.
All Of 1t but 500 900 900 goes to manipulators
Of this proposed swinde. II this plan is
carried out we will still as a government be
In partnership for fifty years with the same
men who have been our partners for the past
thirty years
"As our partners in the past they have
swindled, stolen our property, bribed, de-
Dauched and dsgraced our servants. plumb
cred people along the line of the road by
tortionate rates, while at the same time by
a system of rebates and discrimination they
have enriched favored few; and where these
favored few were private persons they wero
men who, 1t was supposed, had influence in
the community where they resided, and could
influence public opinion; but usually their
taVors were showered upon corporations en-
gagged in trade, who were stockholders and
officers and directors of this road.
I'VE are now asked to continue this part
nership. to continue to have relations with
tn h-se same men, and upon what basis? Upon
the basis OF fraud upon a plan by which
this government is to be a party to an issue
of stock for which no consideration is paid
and upon which the public will be called
upon to pay interest. There are 300 miles
of read, 100000 900 Of bonds. s75 900. 900
of preferred stock and $50, 900 900 Of common
stock-in all, s235. 900 900 of bonds and stock
or s123. 600 per mile.
This 1900 miles of railroad can be re-
produced for s2S,6O0 per mile, and yet the
government Of the United States Is asked
to go into partnership with party Of dis
honest men and bond and stock the road
for S123OOO per mile and the public whom
this road serves Is to be called upon to pay
interest upon this vast sum. That any SET
Of men could come to congress with any
such proposition as this and expect 1t to
be ratified by the representatives Of free
people is an impeachment of the integrity
Of the people of the United States.
But these men have so learned the habit
of making corrupt propositions to each other
by which the public shall be plundered and
robbed in the reorganization OF overstocked |
of every sort that they do not
hesitate to make the proposition now in the |
open daylight to the American people, and
it seems to me It is matter for severe |
comment and censure that committee of
either body Of the congress of the United |
States can be found which will entertain |
1t for a moment
FIN this way the government would rea-
lize every dollar the roads owe. The in |
terest charge would only be 3 per cent on
800. 1000 900 of bonds. or $4,000, 900 per annum
instead of $7,75O.000 under the plan proposed
by the organization committee. The rates for
freight and passengers would be
much less. There would be no incentive
for discrimination OF persons and places.
Every man and every town would have an
equal opportunity and the scandals of our
government with the Union Pacific manage
ment would disappear from the pages Of our
history"