New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-01-15
PACIFIC RAILROAD PROBLEM
A NEW PHASE OF 1T COMES UP IN THE
SENATE
AN INQUIRY AS TO WHETHER THE ROADS ARE
NOT ALREADY GOVERNMENT PROPERTY
PROPOsED-THE COMMISSION PLAN
FAVORED RY TILE IOI,sE
COMMITTEE.

COMMITTEE
Washington. Jan. IA new phase OF the Pacific
Railroad problem was presented in the Senate to-
day in the form OF resolution offered by Mr.
Morgan Oem.. Ala) instructing the Judiciary
Committee to inquire whether by the very fact that
certain OF the bonds of the Union and Central
Pacific Railroad companies had fallen due and were
| rot paid The property OF those companies had not
become and was not the property OF the
United States The resolution went over without
action.
The House Committee on Pacific Railways at its
meeting to-day demonstrated beyond doubt that
in its opinion the better plan OF settling the long
standing Indebtedness OF the roads to the Govern
ment would be through commission having power
to send FOR persons and papers. This conclusion
was reached as the result OF a motion made by
Mr.. Harrison. OF Alabama. that a subcommittee
OF five should be appointed 10 formulate plan of
settlement by commission OH the general lines OF
the substitute offered by him in the House several
days ago when the Powers bill under discus
sion The Harrison substitute provided for COM
mission consisting OF three members of the Cab
met. who should have power TO settle the indebt-
edness OF all the bond-aided railways to the Gov
eminent subject to the approval OF the President.
Mr. Harrsons motion caused a general discussion
which showed that the members with practical
unanimty approved the commission idea, the only
difference OF opinion being TO the number OF
members Of the Cabinet who should constitute it.
should consist Of more than three Cabinet officers.
while others objected to including the Secretary OF
the Treasury. the ground that the duties OF his
Department onerous that he could not give
such consideration TO the work ii deserved.
That however was a matter OF detail which
left to a subcommittee TO settle.
1t was agreed, therefore. that a subcommittee
consisting of five members should be appointed to
draft a commission bill and 1t decided to
include in their work plan for the adjustment OF
the Indebtedness OF the Sioux City and Pacific
Railway to the Government the bill now before
the committee for this purpose leaves the settle
ment OF this matter with the Secretary OF the
Treasury The subcommittee consists OF Messrs.
Powers OF Vermont Harrison of Alabama! Hep
burn OF Iowa: Patterson. OF Tennessee, ana Hun
bard OF Missouri They will hold several meetings
I'm the next few days. and the belief was expressed
to-day that before the meeting OF the full com
mittee on Wednesday they would have prepared
bill which. in their judgment. will not only meet
the approval OF the committee. but OF majority
OF the House well.
The bonds of the Sioux City and racine roau
mature January l. 1895 the amount Oh INC
original indebtedness is N.S0e". which, with 'he
accrued interest. aggregates $V".VD Inc rodo
now forms Iart Of the Chicago and Northwestern
Railway system and Mr.. Brown. of the nrm Oh
Rritton e. Gray. Of this city. who are the couhse'
for that company. appeared before the committee
this morning and briefly stated the iacts co"oe'"
ing the original construction OF the roau anu w,
issue OF first mortgage bonds az $1,000 mile wn M
forms a prior lien the Government lssus ot d
similar amount. Mr.. Brown explained that t's ae
Sire Of the company is to avoid foreclosure nen
ynar hv authorizing the Secretary OF the lreasus
70 make A settlement Of the Government mdeu c
e1rnSs and on payment thereof TO give iust A.
or;,torce He added for the information Oh ny ~,
t'nn,i,t.o that the bill does not waive OF ILL.,
co.i'nt ~ rho Goyernment's legal rights or remedes
a. ~ me settlement proposed fails OF accomplish
ment H.. 4. ossociated with John &.
Cpcd,ts Communication Company. composer VI oT
hanLs which has $l00cO.UW invested IN rd ,ho o
,rnr.rtv in Sioux City opposed the Dill vi, ,his
proPf'! III ,h ~ Congress ought not 10 pass TINS
Iii mntil II had made some settlement OF .le ,nsnd
t t,an nuestjon The banks he represehte1 .ou,u
RAT their railway property IN 1doun ,,cbs were
n,dad for lis value the facilities " li ts 10
ptd 70 sioux city by the Union pacihc &c ro an
- ,rara meagre For three sessions OF AIN,
wnch he continued these banks had been senag
srtss ti,es 10 Washington 10 secure an ai"e I
iepl no Pacific funding bills which woiu sl' ,
neilt ctn,x civ road fair treatment anu d la.
10 t ~ The traffic provided II punt rVau G,
aiiu 90, 30 miles southwest 10 JunVton VII IL
Slo"N Hrinn Pacific main line at North ,s
ttncIr admitted that the failute OF VIZ I'D
iianhls Committee make such provision nau
Rai,mS in strong opposition from me ~
resulted u, which I'm fact had constituted inc
ton Oh ""nr@anized opposition to the measure