The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-02-03
THE GREAT FORECLOSURE
Congressional Efforts to Stop
the Proceedings Debate
in the Senate.

IN t1e senate.
WASHINGTON, Feb. 8, 1ss7-An enor-
| nous floral structure, consisting of two
| tall columns OF white roses connected
| on top by a bar of white chrysanthe-
NUNS, on which the word Honor, was
marked in purple, and with profusion
of large red roses scattered along the
base, stood upon the desk of NE. Du-
bois (Rep., Idaho). who had just return
| ed from his unsuccessful campaign for
reelection, and who was warmly well
coined back again by Senators from all
parties
bill permitting Major General Alex.
M. McCook and Captain George Schriver,
u s. A., to accept medals from the Rus
sian Government was passed
| The resolutions heretofore offered by
Mr.. Allen Pop., Neb.) looking to the
delay or prevention of the judicial sale
of the property of the Union Pacific Rail-
road Company, were taken up, and Mr..
Thurston Rep., Neb) addressed the Sem
ate on the subject.
| He quoted decisions of the Supreme
Court of the United States, to the effect
that the Thurman Act applied only to
those portions of the Union and Central
Pacific roads on which guarantee bonds
had been issued. The Government of the
United States, he said, had never issued
guarantee bonds on the Kansas Pacific, or
on the Denver Pacific, whose united lines
extended from Kansas City to Cheyenne;
and, therefore, in dealing with the pres
ent situation there was but one corporate
three separate and distinct legal situa-
tions. As to the Omaha bridge and it's ap-
proaches, a new Act of Congress had au-
thorized the Union Pacific Company to is
sue two and half nillion dollars in bonds
for that purpose. The bridge had cost
about that sum; but new double track
| bridge costing about one million dollars,
had been built nine or ten years ago.
| These bridge bonds had been paid from
time to time, until now only about one
million dollars of them were due.
L therefore happened that the Omaha
bridge and all the approaches on the east
side of the Missouri River were not COW
cred by any government lien; and that all
the terminals, all THE sidetracks, and all
the bridges were covered by the first
mortgage bonds of the company. The hen
of the government, Mr.. Thurston assert
ed, was subordinate to the lien of the
first mortgage, which had the right of
e.
sion of the property. He had no doubt
that the United States could supplement
its lien subrogating itself for the mort
gage. But that was to be looked at
from a business point of view. The en-
tire first mortgage lien on the 1,032 miles
of Union Pacific road was over $4,000, 900
dollars and that sum the United States
would have to pay before it could take
the property But the United States Was
promised that there would be bid on the
that would the Cnvarnnnnut
little over s45, 100000 That included the
sinking fund of the company; so that the
ury would be about s29, 900 900 The amount
of the original Indebtedness was about
SO, ,oo0, 900; and the interest paid by the
made the whole Indebtedness to the Gov
ernment about ,000
Mr.. Smith Dem., MI inquired whether
the amount stated as interest included in
terest on the amounts paid from year to
year.
Mr.. Thurston replied that it did not
and that no department of the Govern
ment had ever held that it should.
Mr.. Smith insisted that the Government
was entitled to it, and that if allowed
it would make the Indebtedness $ss, ,Oo0, OOo
Mr.. Thurston went on with his argu-
ment. The offer made to the Govern
ment, he said would amount to some Sc
or 81 per cent. of its entire claim and the
question was whether it would not be bet
ter to accept that offer than to pay $780,
100000 for 1.032 miles of railroad in order
to go into the railroad business.
Mr.. Morgan (Dem., Ala.) asked Mr.
Thurston whether he held that the Execu-
tive branch of the Government had the
rlgnt TO make any bargain or agreement
such as had been suggested.
Mr.. Thurston said he made no such
claim; and he went on to state the legal
statue of the several foreclosure suits
viii which el had been begun, he said, three
whether Congress could now create
new Federal corporation to operate the
was wa to run through the territories of The
United States. Now all those territories
the sf aass Saa States and in some Of
promotions against the ownership of
Iairoaas laha; or bv the anv operation cratic Of
domestic corporations. '-i
Mr.. Stewart Pop., Nev) asked how that
would affect the Government ownership of
the road
Mr.. Thurston replied that he did not
states were ready, or would be ready, in
his lifetime, to enter upon the government
ownership and operation of railway lines.
In discussing the question of the fore
closure Suits he was asked by Mr.. Allen
(Pop., Neb) whether the Attorney-Gene
had right, by virtue of his Office and
without any authority from Congress, to
bind the Government by putting in an an
pearance in those foreclosure suits
The reply of Mr.. Thurston was that
the right of the Attorney General to APP
pear in any suit in which the Govern
ment had an interest was absolutely be-
yond question, irrespective of any legis-
lation on the subject. He added that the
government could be brought into court
by order of the Court and that that had
been done in these foreclosure suits He
admitted that Congress might take juris-
diction over those suits from the Circuit
Court. but what a wanton unauthorized
despotic use of power that would be.
Now, when the uttermost rights of the
Government were in possession Of it's own
courts, who was it, or what business in
teresJ was it that said, mo, no.. bring
this back into Congress- Make it once
more theme of political and general agi-
tation.
PACIFIC AVENUE BRIDGE OPEN.