The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-01-09


it was far too favorable to the com
panies. The Union Pacific had made
much more advantageous proposition
to the government than that contained
in the bill. That corporation, too,.' ne
said, was much more liable to comply
with the requirements of the pending
bill than was the Central PACING, ana
he could not understand why they
should be put upon an equality The
average member of congress, he SAID,
could not determine from any data
available to him, intelligently, the
ability of the roads to satisfy the de-
mands of the bill. For himself, how
ever, he believed the companies were
able to do much more and better than
the majority of the committee on IA
cific railroads had proposed. The roads,
he was convinced, could comply with
the terms of the present law, and that
was much better for the government
than the proposed measure. He had
prepared a substitute for the bill, ana
would ask the house to consider II;
making tie secretary of the treasury,
the secretary of the interior and the
attorney-general a committee with full
power to investigate and settle the
debt of the Pacific railroad companies,
subject to approval by the president.
His reason for transferring the settle
ment of the debt was that it was prac-
gress to thoroughly inform themselves
upon the condition of the corporations.
This was in accordance with the re-
commentator of President harrison
and of the present railroad commits
sioner and his predecessor. The prlnci-
pal duty devolving upon congress now
was action of some kind.
DICTATED BY RAILROADS.
Mr.. Boatner Oem.), Louisiana. who
opposed the bill, said the house was
asked to accept the terms OF a settle
ment dictated by the railroads them
selves, and based upon their alleged
poverty, because the government had
a mortgage security for its debt upon
disjointed portions of railroad sys-
tenn. If section of the Thurman act
was not in contravention of the consti-
tuition, the government did have a
substantial lien upon the entire prop
erty of the railroads and, in the face
of this fact, proposition was adVo-
Gated here to accept the companies
offer of a settlement on the theory that
the government was helpless creditor
of insolvent corporations, whose buSl-
ness had been so nanged as TO divert
all their assets beyond the power OF
recovery. Mr.. Boatner reviewed the
history of TIE companies to prove his
assertions that the stock of the cor
BOGdliOllS 1idQ .DGCU IlCSdilg lSo0Co "
the officers and directors, and that the
members of these boards were individ-
ually liable to the United States for
the value of the stock thus fradu-
lently and illegally issued after the
ability of the corporations to meet the
government debt had been exhausted.
IT was the duty of the law officers of
the government to proceed against
these officials and directors and any
member who voted for this or any
other funding bill simply Eoted TO quit
claim the governments right to pro-
coed against the men who had violated
the laws o. congress and to confirm
them in the holding of their illegally
gotten wealth.
NOT HALF so GOOD.
Mr.. Swanson Dem Va,) asserted
that the bill was not half so good an
offer for the government as Senator
Rrice reported that Alexander E. Orr,
chairman of the Union Pacific reorgan-
ization committee, made to congress |
two years ago. Then it was proposed |
to extend the government debt at ,
per cent, the company TO retire prior
and give the government a |
first mortgage. The present bill, the !
declaration of the gentleman from |
Vermont (Mr. PoWerS) to the contrary |
did not give the gov |
while it increased the princi- |
pal of the Union Pacific debt so, 900, 900 |
and of the Central Pacific $24, 900, 600. |
Mr.. Swanson insisted that the railroad |
could do much better for |
the government than the bill proposed, |
and ought to be made to do so. Union
Pacific stock, subject to an assessment |
Of SIS a share, was quoted today at
$3.50 and SO in the New York Herald,
showing that the stockholders of the
company were willing to assume the
payment of the first mortgage bonds
and the government debt and put SIS |
| share more in the treasury.
AS CALL SEES IT.
Mr. Call (Rep. Mass.,) desired to
BRING one thing to the notice of the
house. The reports of the committee
IN this bill and of the previous COM
nitteeS in congress were based upon
he assumption that the supreme court
lad decided that the government had
10 lien upon the terminals of the
DAD, especially upon the Omaha
bridge. This was, in his opinion, an |
,rror. The court had decided in the
Kansas Pacific railroad case that the
government was entitled to demand
)er cent of the net earnings only of
hat portion of the road which had
eceived government aid in its con-
truction; but in the case of the United
states VS.. the Denver Pacific, de-
ided the same day and by the same
Justice. the supreme court held in ex-
,ress terms that the earnings of the
omaha bridge and terminals were to
,e included in making the calculation,
pecifically declaring under the rule in
he Kansas Pacific case that the gov
rnment did have a lien upon the
omaha bridge and terminals.
Mr.. Mccall said he was in sympathy
With the proposition that the debt of
he roads should be refunded, but he | :
elieved the proposition in the bill was |
ot as favorable to the government |
S il should be. The government |
ught not to expect that it's second
mortgage would be eXacted for first ,
Mortgage, but he submitted that if the ,
entieman from Vermont would move
0 amend his bill by making the rate
I interest on the government debt 3 ]
er cent. instead of 2, he would be 5
DING justice to the United States and
o injustice to the companies.
NOT BUSINESS.
NJ. Wheeler Dem Ala.,) spoke :
gainst the bill as not a good business
ropositlon, and was followed by Mr.. :
ohnson (Rep. CALI in a speech for
ne bill full of bitter sarcasm directed :
gainst the gentleman who had i
harged that the projectors of the =
pads had made money out of the l
obstruction of the enterprises. He (
rev a humorous picture of these men :
the place Of the builders of the road
)ming TO Washington after the work
I'D been completed and turning over 7