Evening star., 1897-01-11
OPPOSED TO THE BILL
Nj. Bartlett's Speech Against Funding the
Pacific Railroads Indebtedness.
The Government in q STRONGER POSI-
tion Than Ever Before-Nr,
Swanson's Opposition.

Mr.. Bartlett of New York made one Of
the five-minute speeches against the Pacific
railway funding bill in the House Saturday
afternoon. He said:
THE committee in their report say that
additional security is given by the govern
ment lien covering unsold lands. If you
will examine the bill you will find it espe-
cially provided that the lands unsold shall
be sold for the benefit of the holders of the
first mortgage. So that the security Is not
additional In fact. it is of but little value
today, because, as l am informed, the lands
are covered by millions upon millions of
land-grant bonds.
Position of the Government
The reason 1 am opposed to any extern
sion of the payment of this debt is that the
government of the United States is in a
stronger position today with reference to
these railroads than it can ever be at any
future time. The hour of deliverance, thank
God, has at last come. For thirty years
the government of the United States has
been powerless to enforce the payment of
the interest on it's debt. And now it is pro-
posed that instead of a mortgage at 8 or
ol2 per cent, the lowest just rate according
TO the market rate of interest generally
"hen the security is undoubted, we shall
scale down the interest, SO that by a reduc-
ton of l or IL per cent on the interest the
whole of the principal shall be Cancelled and
eiAS government OI the Cn1teQ states shall
receive in reality nothing whatever on ac-
count of the principal of the debt
ire rights of the United States are con-
dlt1oned on upon the maturity of the bonds.
that II these mortgages are foreclosed that
In SO tar as the Union Pacific road is con-
cerned, the government would receive some
s!6,ooo,ooO. That is the whole of it's prin-
c!pa! ana 3f2 per cent interest on that prin-
clpal. But why do l SO believe? l believe
II, gentlemen. because the various PROPOSE
tlons offered by the Union Pacific in the
past show that enough bonds-that is to
say. bonds of the value of forty-seven or
1orty-elght millions of dolars-would be
set aside in their plan of organiza ton with
"mch TO provide for the payment of the
government liens.
Moreover, 1t must be borne in mind that
neither In the act of 1862 nor in the act of
1864, nor at any time by any act of Con-
gress, has the United States abandoned its
privilege as sovereign not to be sued by
the subject, SO that without the govern
ments consent, without voluntary ap-
pearance in the suit by the Attorney Cen
eral on behalf of the United States, no fore
c.osure by the first mortgage bondhoIders
can give good title, no plan of reorganiza-
tfon can be efficacious or successful. In
other words. before the railroad can be re-
Glaiand Grganzea ct, IT must first settle with the
United states by guaranteeing an upset
Price which shall be satisfactory to the
government. and shall protect sufficiently
the lien of the United States.
The Genital Pacific.
NOW. so far as the Central Pacific is con-
cerned. if you pass this bill you do not ben
ef,t the innocent stockholders of that road.
Do they come here and ask for legisla ton?
NO; it Is another corporation. 1t is the
Southern Pacific which desires to throttle
the Central Pacific.
Were tha; road to be sold under fora
closure proceedings, there would of neces-
SHY De three or four great bidders for the
property. We should have the stockholders
Sl .ne central Pacific, we should have the
southern racine, we should have the reor-
sanlzed Union Pacific, and we should prob
ably have the Denver and Rio Grande to
pld. so, as business proposition the road
can be now sold for the best advantage of
tne government and the people of the
United States.
NOW, Mr. Chairman, a word further,
.i Whlie l do not believe, an initial propo-
sltioIi, i'll the government ownership of rail
roads, L do not believe any more in suh
venton. aid or subsidy paid by the govern
ment of the United States to the railroads
put ,hls was a great national work ma
tional undertaking, born of national ne
cessity, and if to protect our riphts-the
rights OF the people of the United States
we nave to buy the lines, l say it will he
Lar better than to fund this debt under the
provisions OF this bill. We are not to blame
Tor the misfortunes of the past for anv
icss thus far entailed upon the Tinted
otates' put we are rsponsible for any un-
SiSiolioH III tne present, and we shall
,., ne neiu accountable by the people as their
trustees for any loss or damage which NAV
come IN the future by reason of the nass
age OF this bill or the enactment of The
proposed law" - ILLS
Mr. SwansOn's Opposition
Mr. swanson Na) also opposed the bill
ne saio: MI Chairman, this proposition
can be sustained only on the ground that
the government has an additional secnritv
or receives an additional security for the
$zl'UoooO In the Union Pacific and s24
Vo'Vo IN the case of the Central Pacific
which Is made prior lien to the govern
ment lien on the main line of the road.
1t seems to me that if the House IN
oerstood the proposition they would read
ny ooncede that this is the yery worst
ment of the obligations of these roads.
Inc proposition is wholly untenable
NOW, we have lien subject to this sol
WooOo worth of bonds, on the 394 miles of
the road, on the Omaha bridge, and on the
land This bill simply provides for a
second mortgage on all this prop, rty,
subject to the existing claims; and
we Will give these people the right Of
putting $21.Oo,OD Of mortgage, prior to
ours, on the 1,425 miles Of road that they
have not particle of lien On today.
Now. the United States gets its len
by the ninth section of the Thurman act,
which says that the United States shall
nave lien on all the assets, all the estate
real, personal and otherwise, of the Union
Pacific Company: and consequently these
gentlemen do not give US a single addi-
tional lien on the termin ais, the Omah ha
bridge, or the unsubsidzed portion of the
railroad. but We waive our lien on ,425