The Coeur d'Alene press. (Coeur d'Alene, Idaho) 1892-1907, 1897-01-09
THE POWERS DEFEND IT
PACIFIC RAILROADS FUNDING BILL
BEFORE THE HOUSE.
The Opposition Points Out That the
Measure In Poor saIve for n
Bad IntaFy.

Before the debate began a bill waA
passed to amend the act providing for
civil government In Alaska. 80 as to Gre
| ate surveyor general at a salary OF
1900 per year
The resignation OF Governor Black as
| a member Of the house from New York
| Was read.
The house then went into committee OF
| the whole, with Mr.. Payne Of New York
IN the chair. and took up the funding
bill.
Chairman Powers, Of the Pacific railroad
! committee. made the opening argument.
He said that the bill constituted plain
| business propositions. He described the
necessity which existed In the early CO..
for a transcontinental railroad and the
L difficulties which beset the undertaking
at the time. The government was 10
| take nEst mortgage TO assure the pay
| ment OF bonds granted But even with
l this aid. granted by the act of lSdz. the
proprietors were unable to- 90 ahead and
| to permit them TO raise money. congress.
at their solicitation, In 1874. allowed them
| to place a first mortgage under the gov
erRment's lien. and Of an equal amount
He reviewed the difficulties which Be
set the projectors. as 10 the eastern ter.
/ minus. owing to the competition Of sew
eral cities. and how II was settled even
tually by the construction OF branch
lines. The supreme court had decided
that the governments second mortgage
rested only upon that portion OF the
/ road actually aided. He sketched the
great hardships involved in the consum-
nation OF the work and the bountiful
| fruits which followed to the American
people from opening the continent 10 civ
| illzauon. 1t strung towns along its line
like beads; It made the states of the west.
1 II the government should lose every dol
lar Of the debts OF these roads IL could
| credit itself and the American people
with 10 times as much in dollars ano
cents as they aggregated.
Proceeding. he explained the elements
which reduced the estimated earnings OF
the roads and made II unlikely that they
could meet the bonds when they became
due. The governments interests IN lSS
were estimated at s, SO, 600. AT that time
I the army and navy transportation anc
the postal service 10 the Pacific coasi
cost the government 81, IS, 73l.
Yet. Notwithstanding the vast increas.
= In the government transportation to thu
> Pacific coast. the rates Of compensation
= paid by the government 10 the com
y panies were reduced so low that instead
8 Of receiving an amount double, or even
= equal to the interest on subsidy bonds
Il they were left debtors annually TO IN
J. interest accounts in large amounts.
S DO you claim this bill is a judiciou
a and proper arrangement with those VIII
4 have done what they consider the dis
n charge OF their obligations to the govern
mentl" asked Mr.. Boatner.
Il do" replied Mr.. Powers.
= He proceeded TO say that he kne'
a Mr.. Boatner regarded the Pacific railroa
!, projectors a set of rascals. becaus
they had become rich. But they asserte
y that II they had discharged all their OF
!. legations TO the government and had got
ten rich In other ways IL was nobody
~ business.
m This. he said, they had done
The Present Indebtedness.
T He then gave a computation of the pre-
81 eni Indebtedness OF the roads on Janusr
/. 1880. at SsS.57A ts7 for the Union Pacif
and Kansas Pacific, and SS7 ,sSl-5ii on II
Central Pacific and Western Pacific. Al
time has come. he said. when the go'
a | eminent must act The roads had j.
fauiied. The government could forecloi
or Il could seize the roads under Il
Ne law. II each OF these courses was pu
IL sued the government would be obng'
a to Immediately pay the outstanding fir
mortgage bonds. amounting in the a
= gregate to &6l, SIS 600.
Was this advisable with the prese
condition OF the treasury? But this W
not ALL he said. II the government to-
~ the roads Il would have an inside road
n W1thou; terminals. Not a train could
run into Omaha The government cou
., not operate Il without terminals: Il cot
"a not sell 1t without terminals to advl
-, tage- In case of the attempt TO sell. {
" property would be a; the mercy OF ;
NoRuSFN OF ASSNAlltlcAAH- ne RAstA VIII
- i the Pacific railroad committee pPopos
-, he said. was 20 extinguish the remaini
debts OF these companies by periods
- pa ymenis with interest upon the defer
payments AZ per cent. These debts.
hill provided, should be secured by 5
-, ond mortgages made by the companl
IN. | which should embrace not only subsidii
Iparts of the roads on which the COVE
'e~ ment has now a second lien. but also
all their branches. terminals, lands
,re Equipments TO which the lien of the &
ing eminent does not now extend.
ON. The bill provides for the issue of
10 lcompany's bonds for the governing
,ese balance OF sll2 10000 at per cent,
ems for annual payments by each company
sort account OF principal OF xlSS0o annu
,esn for 10 years: $4,000 for 10 years and
ave balance at the rate OF $4,000 annually
&C II this bill was passed and the gov'
meui should eventually be Obliged to I
his | the roads. Mr.. Powers said, Il would ;
anne have a railroad to operate, not n por
the o. a railroad. He said the bill was
jectionable to both roads and he did
know whether they would accept its
YEA. visions.
In reply to questions, Mr. Powers
sf the committee had calculated on 81, @
tannually as the net earnings OF the 10
a. why do you allow per cent on
az. stock OF the company" asked Mr.. La
- ITO tempt the stockholders TO c
"a. into the arrangement We could not
.orth them to so In with no prospect OF
, In dend."
o. What Is the present value OF the :
tho on which you propose to pay per &c
= 70 asked Mr.. Moody of Massachusetts.
The Central Pacific is worth Is.
eau. Union Pacific Is NIL"
will Can the Companies Comply
"Can the companies comply?" asked
McCreary OF Kentucky.
,AuA, That Is the vital question" replied
VAIN Powers. I'VE think they can. The
-. dition of the roads could not well be
than It has been during the last
years. Figuring the net earnings o
rious. roads at sL0oO.OOO each, the charge
United lowing for interest on FIRST mort
norm | against the Central Pacific wou
Ulcers q, 80. $50 and against the Union L
They SaeS7, SIS"
Z the Mr.. Powers, In reply to a QueA ton
'thern gard to the security OF the go7erI
trip under the proposed new lien, sat
er che Pacific railroad company six year
least, estimated the value of the addition
curity at sS2.ooo,OO0
In conclusion. Mr.. Powers said TIL
swept Pacific railroad commission had {
ort Of a plan which had BEEN sanctioned
of the cry committee OF the house or sena;
ocean had investigated the subject. The
wreck sQueesed the roads 10 the last Ger
nth Il reached the verge of the ability
roads to pay.
THE question Is" said he, Ssh,
IN. undertake to collect those debts or
the Or lessly throw them awayS You wo
-. RECALLED with bitter attacks on lndiv
to,s~ have tried to forfcnd against thi
have nothing to do with the fight b