The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1897-01-16
TO Be REFERRED
TO A COMMISSION
Senate Committee on Pacific
Railroads Agrees on a
New Bill.
Similar to the Substitute for the
Funding Bill Offered in
the House.
Senator White Declares the New
Measure Is a Plan Arranged
by Huntington.

W AC111NG4ON, u. ~ Jan ~ IL
Senate Committee on Pacific Railroads
after q long session this morning agreed
to report favorably the Gear bill providing
for a commission, consisting Of the Attor-
nev-General and the Secretaries of the
Treasury and Interior, for the settlement
OF the debts OF these roads. The bill is
similar to that introduced in the House
and is identical with the substitute which
was offered in the House by Harrison on
Monday when the refunding bill was de-
feated.
At Morgan's suggestion the following
proviso was added at the end of section 1,
which fixes the basis of settlement, and
with this agreed to the bill was ordered
favofably reported by unanimous vote:
THAT SAID Commissioners, in making
any settlement under this act, shall re-
serve TO Congress the right to regulate or
prescribe the rates of tolls or charges for
the transportation OF ireights or passen-
gers to be charged on any or all of the
said railroads ana all other rights and
pow ers in respect of said railroads and
railroad companies as they now exist"
Concerning the bill for commission to
settle the Pacific railroad debts, which
was reported favorably to-day by the Pc
cifc Railroads Committee OF the Senate,
Senator White said tonight that he was
convinced that this was Mr.. Huntington's
plan. He does not favor it and is re-
solved that 1t shall not pass the Senate if
he can help it. The fact that Senator
Morgan has been brought around to the
support OF this proposition is rather dis
couraging to the Californians. but there
are other good men in the Senate, such as
Senators Allen and Pettigrew, who can
be depended upon TO assist Senator White
in his fight against the bill.
1t is understood that Senator Morgan IS
not Irrevocably committed to the Harri-
son bill, although he sug zested an amend
ment to it at the committee meeting to-
day. Senator Morgan and Judge Mcguire
Will have conference and may decide to
press the bill authorizing aud directing
the Acknowledgement TO bring suits in the
Court Of Appeals IN the District of CO.
Iumb'a.
The CALL correspondent to-day inter
u
House on the proposition for commits
sion, and finds that the new bill, il IL Is
reported to the House, will meet with
practically the same opposition that the
funding bill encountered. 1t might prob
ably prove 4 little stronger than that bill,
but il Is doubted. The assertion is made
to-day by well-posted men that the Pa
cifc Railroads Committee of the House is
wasting time in attempting to agree upon
a new bill OF any kind.
A heavier proportion OF the opposition
also comes from men who do not want TO
bother with the question again, and who
assert that there is sufficient law on the
statute-bcoks now to protect the interests
OF the Government and the roads.
: some quarters the new bill is char
.acterized as the last efforts OF the railroads
to delay settlement with the Govern
mem. The charge Is made that a COM
mission would take some years in reaching
q settlement, il II could reach it then.
The roads, it is said, are as able to settle
now as they viii be at any future period.
II it IS ascertained that the opposition to
the new bill is about as great as to
The former one it is doubtful if the Com
mittee on Rules will agree to day or two
for consideration of the measure They
will take it as useless waste OF time.
Representative Meiklejohn OF Nebra ska,
who opposed the funding bill, states that
he Will also oppose the new measure be-
cause be is satisfied that the Government
can f0reclose its mortgages and get all or
most Of what is due. He believes that
there would be bidders for the property.
These bidders, he thinks, would represent
Eastern roads which want a through Inc to
the PacIfcC Coast. Representative Pendleton
and Cockrell of Texas both expressed op-
position to the new bill, stating that it is
unnecessary. Judge Cockrell says that
commissions for such purposes are wort h
less affairs. Judge Pendleton thinks that
the Government can get at least two
thirds OF the amount due 1t under fore
closure proceedings.
Concerning the report that a New York
syndicate has made an offer for The Union
Pacific the Post says this morning:
In addition to the announcement made
Yesterday morning Of the efforts Of the
New YORK syndicate to gain possession of
the Union Pacific road the Post is enabled
tins morning to present The exact details
OF the proposition which has been made 10
the Government. The net balance due
the United States by the Union Pacific is,
in round numbers, $53 000.0O0. In addi-
ton TO this there IS the sinking fund of
$1,000 600. The syndicate proposes TO
make its first bid at $28 COO 900. or if the
value of the sinking fund is desired by the
Government 10 be covered into the treas
urv SO 600, 600 will be offered. In either
event the total is $25. 00J eco less than the
net debt or the net debt and the sinkinc
fund com bined. or course if there should
be another bidder at the sale, either repre-
senting home or foreign interests. the
syndicate would be prepared to raise its
figure.
Il is learned that the syndicate, which
is an open one, includes Morgan, the
Vanderbilt interests and large number
OF financial leaders and trust companies
of New York, and has already secured the
underwriting of about $40, 000, coo in the
fnrtherance OF its enterprise. Nothing
viii be done by the Attorney-General IN
the direction of instituting foreclosure
proceedings until he is thoroughly salts
fed that he had guarantee Of the largest
bid which can be obtained. In other
words, he will not institute proceedings,
and have the sale of the road declared.
only 10 find that the Government inter
ests have been sacrificed. Foreclosure
proceedings are mandatory under the law