Evening journal., 1897-01-05
DEBT OF PACIFIC ROADS
Serious Charges Are Made by
Senator Pettigrew.
DAKOTAN USES STRONG LANGUAGE

The Senate commatter;, he Asserts, 1,
Packed In the Interest OF the People
who Control the Roads Useless TO Hope
For Favorable Report.
WASHINGTON. Jan. 5.-"The COMMITTEES
is packed in the interest of the people who
control the Pacific roads, and 1t is useless
to hope for a favorable report on my reso
luton.
Senator Pettigrew had been asked If he
thought the senate committee on Pacific
roads would make favorable report on
his resolution to appropriate SlO,000,oOo
to take up the Union Pacific Railroad
company's 9 per cent trust notes He re-
piled as quoted, and then he said:
"That is pretty strong language don
know that ought to use it. Still it is the
truth, and shall say It on the floor Of the
senate If occasion requires ! don't say
that every member of the committee is un-
der the control Of the roads, but do say
that a majority Of the committee is pack.
cd, and will not report legislation adverse
to the people controlling the roads.
"Take the Union Pacific road. The rich
est sources of its revenues are from its
branch lines. Suppose the business Of
these branch lines should be given to RI
val line paralleling the Union Pacific.
The latter would greatly suffer, would 1t
not If the government refuses to extend
the time of payment, it win foreclose. But
if in selling the main road the branches
are not included the prices which the
foreclosure would bring would be COM
paratively small.
"The prospect Of getting such small
price would have weight in inducing the
government to listen moro favorably to
the proposition TO extend tho time of pay
ment, even at a reduced interest There
FORE it is not surprising that these man.
ipulators should do whatever they can to
bring such an unpleasant prospect square
before tho eyes Of the government, espe-
cially when by SO doing they could feather
their own nests additionally well, even
should the government foreclose and sell
the main line to some other than the ma
nipulators to whom l have referred.
Row It Is TO BE Done.
"Now, how is this to be dones Just this
way. In 1891 tho Union Pacific Railroad
company issued its per cent gold notes
for IS, 500, O00 or, at least, the principal
and interest amount to that sum. To Sc
cure these notes the company deposited
the bonds and securities of the branch
lines as well as those Of the main line.
The notes have been past due for two
years. The interest has been unpaid
understand 1t is now proposed on the part
of the owners of these notes to fOreclosG
upon tho securities, issue bonds TO the
amount Of $40, 600, O0O and issue 50, O00 0Ol
worth of stock. and delivef the stock &c
the people who take the bonds and furnish
the money to pay these trust notes.
"These securities and bonds Of th'
branch roads, given for security of th,
trust notes. arc on their face worth S0I,
900, OOO Their market price today u.s.
am informed from $50, 900, coo to sl0,
600, 600. Yet it is proposed TO sell them tC
pay those trust notes. to get possession o.
the branch lines, and then, should th'
government take possession of the maiI
lines of the Union Pacific, divert thI
branch lines to the Northwestern or SOM
other road which nearly parallels the Tn
ion Pacific, and SO, besides enrichinl
themselves greatly decrease the value O
the government property, as can be ver.
easily seen.
my purpose is to have the governmen
propriate enough money to take NJ
these trust notes and so prevent the hold
ers Of the notes obtaining possession of tn
branch lines
But you say that these notes are pas
duee How can you prevent the holder
foreclosing before congress could appro
pirate the money necessary to take up tn
notes, even were congress so disposed"
We'll, the foreclosure has not take
place, and congress should take steps i'm
mediately TO appropriate money to take u
the notes. The whole scheme is one of tn
grossest outragcs ever perpetrated on tn
people.
What was the debt for which the trus
notes were issued contracted for"
For the notes, I should say. tn
branch lines were and are making mon
sy They could have paid the interest o
che notes and the principal too. My belle
Is that there was no need of the debt 1
fact, do not bslieve that any money wa
paid on the notes. It's all giganti
fraud, an outrage on the public -
"Bo you contend that the people VIII
Issued the notes are the same who no.
hold them and the securities"
"They all belong to the same crowC
They have been robbing this governmei
for years, and the pity Of it is that the GO
srnment continues to have anything to
with them"