New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-01-09
THE INTEREST INCREASING.
SECOND DAYS DEBATE ON THE PACIFIC
RAILROAD FUNDING BILL.

49, 20 n,scr-ssrn FROM A BUSINESS POINT OF
WIN, w,rr OCCASIONAL. OUTBREAKS OF PER-
soNArITIEs-MR. JoHNsoN's ATTACK On "''
HEARST ANSWERED. by Mr. COOPER
vvosh,rs,o, Ian. S-The second days d'sous',o"
NJ the Pacific Railroad Funding Dill oy ~" ,,,orcst
of Representatives developed "u''
from a popular point OF view ,,o DAYS pro-
Mr. Patterson Dem. TENN ope"eo w. hul He
ooodrcc in a br,ef speech supporting the o ,h.
said that he did not subscribe 10 inc W ~ hu,ld-
sentimental side of the controversy ,actors
ers of these roads were great pun" III NJ inn
opening up n vast territory 10 .ne ,h.rc WAS
provement and prosperity OF the Na''" .na ropular
arotber side which might be calico '"e .,h,,c
ANIME go ~, ,hoso men I'D to scorn as puo"'
h,or. He aid not subscribe to that view ..o
rbere was no use. nc said. In discuA'e rhe fact
| bevond the mower Of remedy by ZINC ,,s credit to
was that the Government had ioa"e, - taking
| the companies by the issue Oh 10 .o money thus
as security for the repayment Oh ~. rroperty
,.s socond mortgages on certain 30 cen .
| T, ,onas ,ssuod amounted to someth'"e 49, 80 on
nm 0Oo and the security was se.o .r,yaqe did
about 1000 miles Of railroad. i,.a as-on asser-
not ,ncude the terminals OF the ram ,, with
ton. Mr. Patterson said. that "'s " nd If the At
| tho onipions of the Supreme Cour' anu rou The
W. cn.ral ~ the United States az 49,, 90
,u.,ous resting on the railroads III "u" -. NO
| Tho Government lien. amounted 10 a." ,ar,ioncd
,,uo which together with the 49,, ro,rood
| nv Mr. Powers made 1t mpossoe ~, 49,, or their
| comnonies TO earn and pay the mt ,ho obIipa-
~. % sneak OF the principal OF inc oo'e"
| -, ,o,rt,ny altogether TO ABOUT s'''o
~ uas,ion was What Is the Govern,''en. w.. ,o
| to do with this enormous ihoeo',' .,amsevcs he
| practical propositions preseh'eu arsb,r and
~, o. contemplated Government owner s",P o."
sa'u' o'' y. 49, roiroads: the other. ana ohIy
,..,.o ,ras a settlement with the OWN
., o., n. was unaterably opposed
| TINT the whole debt should be cah'o a IAN
,b,r that Congress should take INC ,.. hoor
my public life." Mr.. Patterson ss'o' -, tho
,r,,ng n get the Government to 20 ou' y,
u!'"s ~ and 7 most earnestly protest
-. a.. ooi,g into tho railroad business. Inv
~ ,r,nortant and cssentia! element III 'nc So
| ,lomcnt of the question. per'ou VI -. .r-
| length should be accorded to the coni' or
| ob,e them 10 pay the debt; In return 'o' ,,ni,
| osson the companies should INCLUDE within w. ,
| 'o'' j.. ,ho Government all their properly
| .,,,a,n, terminals and about 1000 additional NM
a, road he fully Endorsed the provisions % Wv
| hill as constituting n just, reasonap' an a.,ro
| like basis for settlement. IN we" vi '"0
| capacity Of the corporations. .s,,,or
| A. Harrison Dem Ala.) followed In oPpoSi'o"
| . A., IN, 10 believed that the time had come
,or corgrcss IN take action. but coulc not SuPP''
| the pending measure because 1t was iar 700 i",o
ahls 10 the companies. The Union rao''', nav
made a much more advantageous propos'.'o', "
the Government than that contained ]" .''o
| That cornoration too he said. was niue" "'
able TO comply with the requirements vi '' -
ing hill than was the Central Pacific. ana ne cou''
| not understand why they should he put OH a."
| equality The roads. he was convinced cou'u .o''.
| NV with the terms OF the present ia" an" ''
was much better for the Government IMAM '"e P'
| rosed measure lie had prepared SUBSTITUTE ior
| ,bo hill, and world ask tho House to consider IT,
| making the Secretary OF the Treasury. the secre-
| tary of the Inferior and the Attorney-'eheIa' d
| committee with full power to Investigate ana set
tie the debt Of the Pacific Railroad companies SUD-
ject 10 approval by the President
THE GOVERNMENTS LIEN.
| Mr.. Boatncr Dem.. La. who opposed the BILL
said that the House asked to accept the terms
| NJ settlement dictated by TIE railroads them
selves and based on their alleged poverty. because
the Government had mortgage security TOT It's
,bt on disjointed portions OF railroad system
II Section of the Thurman act was not In contra
vertion OF the Constitution. the Government "u
bava q substantial lien the entire property OF
the railroads. and in the face OF THIS iact props
siton was advocated here to accept the companies
offer of a settlement, the theory that the 'oV-
eminent was a helpless creditor of insolvent corpo-
rations whose business has been sc mortgaeeo a.
TO divert all their assets beyond the power OF re-
cover Mr. Boatrer reviewed the history OF the
comnanies to prove his assertions that the STOCK OF
the corporations had been illegally issued 10 the OF
fcers and directors and thai the members OF those
boards were individually liable I? the tnlteh S'i'es
for the value of the stock thus rauGilcnty ana IL
legally issued. after the ability OF the coTloraoh
TO meet the Government debt had been ekhaus teu
Mr.. Swanson dem. Nal asserted that tne o
was not half good an OFF, for the uover n s
| ne Senator Brice reported that Alexander e. OFT
chairman of the Union Pacific REORGANIZATION Com,
| mittee made to Congress two years ago men y
was proposed to extend the Government deb, az .
per cent. the company TO retire prescott ana Pi,ol
obligations and give first mortsags TO .he 10y o.
ernmen: The present bill. the declaration OF tn'
gentleman from Vernon, Mr Powers, ito .he so SHa
Of additional security to the Government while II
increased the principal OF me unon q. rSe n NJ
swanson insisted that the railroad companies couiS
do much better for the Government than the Dill
nronosed and ough: to be made TO DO so.
Mr. Mccall Rep. MassD desired to bring on
thing the attention Of the House TN report !,
Congress on this bill were based on the assump.iof
the s So%r naa OF the road
especially the Omaha bridge This was In m:
nroposi,ion that the debt OF the roads should be re-
| funded bu. he believed the proposition IN the oil
not favorable TO the n as
that its second mortgage would be exchanged lor
rs mortgage but he subms oy ,nat n me ss b
bv making the rate of interest on the Government
tice to the United States and no Injustice to th'
companies.
MR.. JoHNsON'S SARCASM
Mr.. Wheeler Dem. Aa) spoke against the bill NJ
| net good business proposition. and was Followed
by Mr. Johnson CRep Cali in a speech for the bill
full of bitter sarcasm directed against the men VIII
had charged that the projectors OF the roads hat
. made money out OF the construction Of the enter
nriser He drew a humorous picture OF these men
in the place of the builders of the road. coming Il
WASHINGTON after the work Rad been completed, am
turning over TO tie Treasury the money which the
tl ,,;rocu,ously made I'm their project "Wou
,bev hav. done it," he asked incredulOusly.
The practical question before tic House to.da
was how couli the Government get It's money? ]
the roads forced to sale. II was demonstra
blc fac. that the proceeds Of the sale would no
nav the first mortgage. let alone satisfying III
! GOV, rnmer. indebtedness. The only feasible an
practicable thing to do was to give 10 the com
nn,nies time In which 10 pay their debts. The
we're no worse off Mr.. Johnson said. than the Gov
eminent Of the United States or National banks !
!. G,Jeciors which could not pay their debts n a
their obligations should be presented at once Their
! was no sense he said in trying to force debtc