Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1897-01-08
FIFTY-FOURTH CONGRESS.
WASHINGTON, January s.
GENATE

SENATE.
The Senate was not in session to-day,
having adjourned yesterday until Mon
day.
HOUSE.
Upon request of Mr.. Turner a reso-
luton was agreed to instructing The at.
torney general to add to his last an
nual report full copies of all cores.
pondence and kilograms between the
department and public officers and all
persons relative to the great railroad
strike in Chicago in 1894 and the action
of the government in suppressing the
same.
The House then went into commit
tee of the whole to further consider
the Pacific Railroad funding bill.
Mr.. Patterson opened the days pro-
ceedings in brief speech supporting
the bill. He said he did not subscribe
TO the theory of tile sentimental side of
the controversy-that the builders Of
these roads were great public benefac-
tors, opening up vast territory 10 the
growth of the improvement and pros
perity of the nation. There was
another side which might be called the
popular side that held these men up to
scorn as public robbers. He did
not subscribe to that view either.
He endorsed fully the provisions of the
bill as constituting just, reasonable
and business-like basis for settlement,
in view of the earning capacity of the
corporations.
Mr.. Harrison followed in opposition
to the bill. He believed that the time
had come for Congress to take action,
but could not support the pending
measure because it was far too favor
able to the companies. The Union Pa
citic had made much more advan-
tageous proposition to the government
than that contained in the bill. That
corporation, too, he said, was much
more able to comply with the require
ments of the pending bill than was the
Central Pacific and he could not under
stand why they should be put upon an
equality. He believed the companies
were able to do much more and better
than the majority of the committee
on Pacific railroads had proposed
The fact was that the government had
loaned it's credit to the companies by
the issue of its bonds, taking as security
for the repayment of the money thus
advanced second mortgages upon Ger
tain property. The bonds issued
amounted to something over sixty mil
lions, and the security was second
mortgage upon about 5000 miles of
the railroads, an assertion, Mr.. Patter
son said, that was in harmony with the
opinion of the Supreme Court, and
| of the Attorney General of the United
States as we'll. The obligations resting
upon the railroads, in addition to the
government lien, amounted to about
500, 600 mile, which together
with the causes mentioned by Mr..
Powers yesterday, made it impos-
sible for the railroad companies to
earn and pay the interest on
their debts, not to speak of the princl-
pal of the obligations, amounting alto
gether to about S175 100000. The ques-
ton was, "What is the government 60
ing to do with this enormous indebted
ness?" But two practical propositions
presented themselves, he said. One
contemplated government ownership
and management of the railroads; the
other, and only alternative, was set
Element with the owners. To the first
be was unalterably opposed, prcferring,
be said, that the whole debt should be
cancelled rather than that Congress
should take the roads. "All my public
life," MIR. Patterson said, II have been
trying to get the government to go out
| of the banking business, and | most
earnestly protest against its going into
the railroad business.
Mr.. Boatner, who opposed the bill,
said the House was asked to accept the
terms of settlement dictated by the
railroads themselves, and based upon
their alleged poverty, because the gov
ernment had mortgage security for
its debt upon disjointed portions of q
railroad system. If section of the
Thurman act was not in contraven:ion
of the constitution, the government did
have substantial lien upon the entire
property Of the railroads, and in the
face of this fact, a proposition was ad
vocated here to accept the companies
offer of settlement, on the theory that
the government was helpless creditor
OF insolveut corporations, whose bust
ness had been so managed as to divert
all their assets beyond the power OF re-
covery.
Mr.. Swanson asserted that the bill
was not half so good an offer for the
government as Senator Brice reported
that Alexander E. Orr, chairman of
the Union Pacific reorganization COM
mittee, made to Congress two years
ago.