The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-01-08
TUE HOUSE.
Confederation of the Pacific Rail
ronl Refunding niil.

| most important piece OF legislation which
| will come before congress at this session.
| came up today In the house. under a spa-
cial order which allows two days for gen /
eral debate and one day for amendments
and debate under the fiye minute rule, with
| provision for final vote on Monday next.
There was q great deaf OF interest In
| the measure and the members gave all tha
| speakers close attention. There were only
\ four speakers today. Mr.. Powers tRep.l oi
Vermont, the chairman of the Pacific rail-
road committee, who opened With an cx-
| haustiye two hours argument In support |
OF the bill; MIR. Hubbard tRepD OF Mis- |
souri,. the minority member CT the commit
tee. who has charge OF the opposition. and |
Mesgrs. Grow (Rcp) OF Pennsylvania and |
I Fell tDem.) OF Texas. who spoke respect |
lively for and against the measure.
Il Washington January T.-Despitc thel
fact that the house today entered upon the
consideration OF the Pacific railway fund
ing bill the attendance on the floor was
not large Grea, interest, however, was
manifested in the opening OF the debate by
those present Large maps showing the
routes Of the Pacific roads had been erect
ed in the arena in front of the speaker q
rostrum and were frequently referred TO
by the several speakers. Under the special
debate viii continue until Saturday even
. ing and the voting win take place Monday
Before the debate began bill was passed
to amend the act providing for civil gov
ernment IL Alaska as to create sur
veyor general at $1,000 per year TO perform
the duties oc registrar aud receiver of the
general land office at Sitka.
The resignation Of Governor Black OF
New York as a member OF the house was
read.
,t.. Do ,.al
! committee demanded the regular pro
| gramme under the special order and the
, house went into committee of the whole
tMr. Perkins of New York in the chair.
and took up the funding bill. Mr., Powers
said that Il had been arranged that tho
time OF discussion for and agains; the bill
, should be equally divided, ne to- control
the time in favor. and Mr.. Hubbard, the
member of the committee who made the
! minority. against. The house confirmed
+; this agreement.
Mr.. Powers then took the floor and made
the opening argument. He took hts posi-
ton in front of the chair. At the outset
= he declared that he proposed to deal with
the house with the utmost candor. The
bill which the committee presented to the
members for their consideration. he said.
constituted plain business proposition and
he asked the members TO consider IL as
such. lie then launched his argument in a
thoroughly exhaustive history of the Pa
II cfic reads. He described the necessity
: which existed in the early sixties for a
transcontinontal railway. the difficulties
~ which beset the undertaking at time
when the South WAS abinze With red war,
. private capital being unable to accom-
y plsh anything without government aid.
. and the determination Of the government
u to back the hazardous enterprises by large
. grants of land and by guaranteeing tho
bonds OF the road up TO 10000 per mile as
-. far as the Sierras and S32.OOO for the dis
tances across the mountains.
The government was 10 take first
. n ortgaec TO Insure the repayment of the
= bonds, But with this aid granted by 'he
act OF 1862, the projectors were unable to
i, | go ahead, and TO permit them TO raise
y money congress, in 1864, allowed them 10
n place first mortgage under the govern
= | nent's lien aud of an equal amount lie
reviewed The difficulties which beset the
G projectors as to the eastern terminus ow-
A ing to the competition OF the several cities
4 and how 1t was settled eventually by the
construction OF branch lines. The supreme
court had decided that the government 3
[ | second meeting now rested only on that
portion OF the road actually aided.
He stated the great hardship involved in
Y the work and the bountilul fruits which
flowed to the American people from open
y iuE the country to civilization. 1t strung
: towrs along its line like beads. 1t made
. | the States OF the West. II tho government
} would lose every dollar of the debts OF
2 these roads 1t could credit Itself and the
: American people with ten times MS much
;. In dollars and cents as they aggregated.
G Proceeding he explained the elements
D which reduced the estimated earnings Of
D | the roads and made IL unlikely that they
= could meet the bonds when they came due.
The governments interests In 1852 was
| estimated at 81, $50 600. At that time the
q army and navy transportation ana me
\ | postal service TO the Pacific coast cost the
- af .ltNxt III
y | ing tho vast increase in the government
. | TRANSFORMATION TO tbs Pacific coast. the
rates OF compensation paid by the govern
A ment to the companies were reduced so
low that instcad of receiving an amount
: double or even equal to the interest on Inc
a | subsidy bond. they were left debtors an
| nunlly to the interest account III large
/ amounts,
: DO YOU claim that this bill is just and
proper with those who have done what
e they could TO discharge their obligations
II TO the governments" asked Mr.. Doalher
tDom.) OF Louisiana.
II do. repliod Mr. Powers. He proceed
a cd IL say that he knew Mr. Boainer re-
n gaIdcd the Pacific railway projectors as a
G sct of rascals because they had gotten rich.
Is But he asserted that ii they had dis
>. charged ali their obligations TO the gov
l. ernment and had gotten rch In other ways
- it was nobodys business. This, ne SAID,
. they had done.
:. He then gave a computation OF the pres
e ent Indebtedness OF tho road on January
II / 1897, at S53,7i5,40s on the Union Pacific
and Kansas, and s57, 6Sl, 5Ii on the Central
Pacific anu Wostern Pacific. The time
, had come he said, when the government
= must act The government could fore
- close or II could seize the road under the
y law. II either OF these courses was pur-
" sued the government would be Obliged 10
Immediately pay the outstanding first
mortgage bonds. amounting in the aggre-
Ia gate 10 SOL 1881 900. Was this advisable
10 with the present condition Of the treas
lie ury?
l. But this was not all he said. II the gov
ID | eminent took the road. II was an inside
road" without terminals. Not train could
Il he run into Omaha, The government could
Is not operate 1t without terminals, 1t could
not sell II without terminals TO advantage
a In case OF the attempt to sell the property
l. ID would be at the mercy Of the owners Of