The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-03-10
MORGAN HAS A PLAN
PACIFIC RAILROAD REORGANIzA-
TON ITS OBJECT.
Provisions for Refunding Outstanding
Bonds and for a Sinking Fund--Dnec-
tioR for the Governments Taking Pos
session of Roads and Operating Them
Certain Classes ExcIeded From Service
on the Operating Boards of Directors In
Case of Government ControI-Central
and Union Pacific as Ono Line.


Washington, March Ex-senator Morgan
today introduced in the senate long doc
ument in the shape of a resolution en-
bodying his ideas of a plan for the reor-
ganization of the Pacific railroads. II in
structs the committee on Pacific railroads
to report the bill introduced by Mr.. Nor
gan, giving jurisdiction TO the court OF
appeals of the District of Columbia IN
cases brought by the United States in
volving government liens on railroads.
The resolution also instructs the commit
tee to report bill, either as an original
bill or an amendment, containing provi-
sions for refunding the outstanding Pa
cific railroad bonds held by bona fide own
erS who are not indebted to the United
States, and also the first mortgage BONDS;
the refunding bonds TO run for thirty years
at the option of the government, and sub
ject after ten years to be called in and
paid by the United States, and TO bear in
terest at the rate of per cent. The re-
funded bonds are to be held by the United
States treasury and be exchangeable for
the old bonds. They are 10 be secured as
the present bonds are. A sinking fund Is
provided for, to be deposited by the COM
panies at the rate of per cent per an
mum, to pay the interest of the bonds II
not paid by the railroad companies. Di-
rection is also given for taking possession
of the roads by the government under the
provisions of the act of 1886. In that
event the United States is to operate the
roads as its property, the present board
of directors in each road to be superseded
by others consisting of nine citizens to be
appointed by the president. No person
now an officer or a stockholder of the
roads or of any railroad or transporta-
ton or telegraph company, or a member
of congress, or an official of the govern
ment is to be appointed on these boards.
The board Of directors is to manage the
Central Pacific and Union Pacific and
branch roads as one line and have power
to fix rates. No dividends are to be paid
on unregistered stock, and the stock is all
to be reduced to correspond with the value
of the property. The functions of the
present officers of the roads are suspend
ed and the books, papers, contracts, deeds,
etc, are to be turned over to the new
boards of directors on penalty of fine and
Imprisonment for refusal to turn them
over. The document closes with q de-
claration that the government is possessed
in its own right of all the property of the
Pacific railroads; that ii holds it as the
means and instrumen tally of national
government and of interstate and inter
national commerce.: that il is necessary
that the roads should be consolidated as
one through line; that the government
will preserve the property as far as is
consistent with justice for the payment
of all lawful demands and when the roads
are freed from debt will permit the own
erS of stock to share in the ownership
according to the value of their property.