The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-01-12
Its Defeat Due tn the Bold Horde OF
Behalf Of the Pacific Railways.
FORECLOSURE NOW PROBABLE
PRESIDENT CLEVELAND MAY SOON
ISSUE a PROCLAMATION.
Lively War Between the Huntington
and Vanderbilt Intercsts-How the
Indiana Members Voted.
Special to the Indianapolis Journal.

| Special to the Indianapolis Journal.
WASHINGTON, Jan. 1.-THE big news Of
| the day and for that matter OF this session
| OF Congress up 10 date. is the defeat OF the
| Pacific Railroad funding bill this afternoon
| by the decisive vote Of los 10 102, majority
| of sixty-six. The surface cause OF the de-
| feat the presence on the floor OF the
| House of a horde of lobbying ex-members
acting i'm behalf OF MIR. Huntington, of the
| Central Pacific. and the presence In the
halls and corridors and committee rooms
| OF a great number of professional lobbyists
| Things came to such a pass that it was
| hard for "A self-respecting member. however
| much he may have been predisposed in fa-
| vor OF the bill TO vote for Il with these no
torious corruption agencies surrounding it
and urging its passage. The influence OF
| the House organization and mana cement.
! and OF whatever force there is i'm favor OF
standing by the reports of committees. was
massed in favor of the bill, and IL may have
been the best thing for the government
and the people TO have passed ii, but the
| surroundings were too vicious and the in
| fuences openly advancing IL on the outside
were too VIGOROUSLY bad TO permit Of its
| adoption by the House.
The vote to-day marks a new era in the
relations between the government an6 the
! Pacific railroads. Ii means the practical
| abandonment of all attempts TO secure an
| extension of the Indebtedness of the COM
panies and the further involvement of the
| government i'm this scheme. which has
| proved financially disastrous up 10 date. Z
| There is not one chance i'm thousand tina
Congress will ever commit the governruqE
| to railroad ownership. The only otheJ/ai-
| tentative. therefore is foreclosure, lei the
consequences BE what they may. The or
| organization committee of the Union Pa
cific stands pledged to go into the open
| market and bid an amount equivalent TO
the principal of the company's Indebted
ness to the United States. and the con-
| trolling interest connected with that reor-
| ganization committee are known TO be
| ready to compete with Huntington for the
| ultimate ownership and control OF the Gem
trail Pacific from Ogden on to San Fran
| cisco.
| The vote to-day also marked the begin
| ming Of open war between Huntington and
| the Vanderbilt interests. backed by Gould.
| Sage and Dillon side and the Dutch
| and English bond interests on the other for
the control of the Central Pacific. dictated
| from the beginning 10y Huntington. Mr..
| Huntington is now almost eighty years OF
| age, and has only short time to live. He
| is very rich man. but the odds are against
| him. The opposition is so constructed that
it will endure through unnumbered years.
| and it has dollars where he has dimes. The
| day is not far distant when the Pacihc
coast so long dominated by him in traffic
| way, will be opened and the great popula-
ton of the SLOPE with it's teeming indus
tries. will have a free outlet TO the Atlantic
/ markets.
i rbo NJ mill in all
probability be followed by the issuing of a
| proclamation by President Cleveland di-
recting tho Department OF Justice to begin
| foreclosure proceedings against the Central
| Pacific and Union Pacific railroads under
foreclosure. The President has intimated
that he would do this ina public utterances.
| and information from the White House this
afternoon is to the effect that the matter
| will be brought up at Cabinet meeting to-
| morrow and final course OF action de-
cided The beginning OF the end Is IN
| sight. Within the next two or three years
| the Pacific Railroad troubles will be cleaned
| up and the matter eliminated from the felo
| of discussion and controversy.
The incident OF the defeat Of the bill to-
| day was attended by many exciting circum-
stances. a mass OF people looked on while
the vote was being taken and hundreds OF
men,. by their excited activity. confessed
TO a very lively pecuniary interest I'm the
outcome. Two or three preliminary votes
| taken on amendments were misconstrued by
| those who were not fully acquainted with
| the inside of things into ind ications favorable
| to the bill. and after each vote more than
a hundred individuals crowded around the
| telegraph offices TO send dispatches that-s7e
bin was sure to pass. After the final vote
was taken some Jokers proposed TO Eold
fees and the disappointed hopes under the
| hammer
HOW HoosIERS VOTED.
Messrs. Faris, Hardy. Hatch. Leigh;y.
Ovelstreet and Royse voted for the bill. and
Johnson and Steele against IT, Messrs.
| Henry. Hanly. HemenWay. Watson and
Tracewell were paired. and their votes were
not recorded.
According To the treasury figures OF Jan.
| 10. the net amount due TO the United States
by the bond-aided roads, after dedacting
| the amounts credited on account OF trans
portation service. Is sl2l 0S76. the original
| principal OF which So. .e235l2 In ad-
| dition 10 the amount owing 10 the United
States the companies. under the authority
granted by the act OF 1864. issued bonds
amounting TO S6LGls.oo0. which since have.
| by act OF Congress- become first lien on
the roads. 1t is the opinion OF many that
| before the government could institute fore
| closure proceedings IL would be compelled
| to secure the interests OF the nrst-licn
holders. This. however. is not the opinion
OF Assistant Attorney General Russell. who
holds TO the opinion thar Congress can ie-
galy declare a forfeiture of the land grants
and property Of the roads on the ground OF
conditions broken. The supposed objection
TO this plan. Mr.. Russell assumes. would be
that the government has made the second
mortgage bonds prior lien u the govern
ment's original mortgage. and possibly be-
cause IL might seem like ineluitable con-
struction OF the law against the present
prior lien holders. Neither OF these obJec-
tions Mr.. Russell thinks, should stand.
The act OF July I. lS6a. Section 6. referring
10 the grants 20 the Union Pacific and Cen
tral Pacific companies, says that the grants
are made up on the condition that the COM
panies snail pay the bonds at maturity.
This, Mr.. Russell maintains. II a condition
subsequent and has been broken. He there
fore sees nothing 10 prevent the government
from exercising its right OF forfeiture Tor
. what Is known Ia the law IS condition