The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-01-09
hHE PACIFIC RAILROADS.
,y0IHER DAr's DEBATE IN THE
: UOusE ON THE FUNDING BILL.


,yoJUER DAY,s DEBATE IN THE
UOUSE ON THE FUNDING BILL.
..u,r-on OF Tennessee Prefers TO Cancel
,,r Drbt- Rather Than Take the Roads
-Boatner say. stock Has Been HE.
ssliy Issued TO Omccrs and Directors.
WASHINGTON. Jan. s.-The second days dis
,,.lon Of the Pacific Railroad Funding bill by
IAe House OF representatives developed much
uote interest from n popular point OF view.
Mr.. Patterson dem, Tenn opened the days
Locccd.nys in q speech supporting the bill. lie
IA that tho obligations resting upon the rail.
I'D. In addition to the Government lien,
rnoun,cd to about s55. 900 a mile. which made
4. impossible for the railroad companies to earn
.,d pay tho interest on their debts,
-, 10 speak of the principal OF the
,hleations. amounting altogether to about
hi 5000 600. The question was. What 10
hs Government going TO do with this enormou
sdebtcdnessy ?" But two practical propositions
L,een,ed themselves. no said. One contcm-
lated government ownership and management
THE railroads; the other and only alternative
r.a settlement with the owners. To the first
.uas materially opposed. preferring that the
rhole debt should DO cancelled rather than
nat Congress should take the roads. "All my
Lubic lie" Mr.. Patterson said. IL have been
ring to get the Government to go out OF the
k,nkins business. and | most earnestly protest
s,lnst its going into tho railroad business" lie
pdorsed fully the provisions OF the bill. as con-
tsu,ing u just, reasonable. and businesslike
kshs for settlement, in view Of the earning
apacity Of the corporations.
Mr.. Harrison Dem. Ala) followed In opposi-
bon to the bill. He believed that the time had
-. Dor fonyrHaa tn TAXA aCtipn but rauld NOT
import the pending measure. because II was far
po favorable to the companies. He believed
S,ter than the majority Of the Committee on
Pleinc Railroads had proposed.s The roads.
\ was convinced. could comply with the
ETns Of the present law. and that was much
utter for the Government than the pro-
ssd. measure, lie had prepared q substi-
tpts for the bill. and would ask the House to.
puhder Il. making the Secretary OF the Treas
M, the secretary OF the Interior. and the At
pirey. Gencral q committee. with full power 10
Pilfcad companies. subject to approval by tho
PRESIDENT. Ills reason for transferring the set
cement q tho debt was that Il was practically
Impossible for members Of Congress to thor
esshly inform themselves upon the condition
Il the corporations. This was In accordance
M and of the present RAILROAD Commissioner
M his predecessor.
liz B9a,ncr Dem. La, who opposed the bill,
Md tie House was asked to accept the terms of
! stlle dictated by the railroads them
wives, on the theory that the. Government
vs u ntlplcNS CrtultOr OF lnsOlvgnt COrDOru-
uou. whose business has been so mortgsged as
pdiveft all their assets beyond the power OF
rcovery. Mr.. Boa;ner reviewed the history of
be sOmpanies to prove Lis assertion that the
rock OF tho corporations had been illegally
sued to the officers and directors, and that the
a,HOeTs Of ,he'. board; were individ.
ity aud Illegally issued, after the abil-
s,b, had been exhausted. IL was the duty of
hslAw officers OF the Government to proceed
rslnst these officials aud directors. and any
member who voted for this or any other fund
ng bill simply voted to Quit-claim the Govern
nents right TO proceed against the men who
sd violated tho laws OF Congress. and TO con-
firm them In the holding OF their illegally gotten
NJ Mccall rep. Mass.) desired to bring one
prts OF the committee on this bill. and OF pre-
,tous committees Ia Congress, were based upon
he assumption that the Supreme Court had
seeded that the Government had no lien upon
ne terminals OF tho road, especially upon the
Omaha Bridge. This, was, In his opinion, an
PHiic Railroad case. that the Governmsnt was
niiiled To demand . per cent. of the net earn
hs only OF that portion Of the road which had
The case OF the United States vs.. the Denver
heihc. decided the same day and by the same
%lstice. the supreme Court held in express terms
bat the earnings of the Omaha Bridge and
criminals were to DO included In making the
aieqlation,. specifically declaring, under the
pie In the Kansas Pacific case. that the Govern
a.ai did have a lien upon the Omaha Bridge
~ terminals. Mr.. Mccall said he was In SYM
tsay viii, the proposition that tho debt of the
y~eposition in the bill was not as favorable to
~ Goyernmcnt as II should be. The Govern
esl ought not to EXPECT that its second mort
Pc would be exchanged for first mortgage,
The submitted that IL the gentleman from
Is,mont, would move to amend his bill by
Ming the rate Of interest on the Government
Esi per cent: instead of 9 he would be doing
E.uee to the United States and no injustice to
Nj. Johnson rep. Call advocated the bill In
espeeeh full Of bitter sarcasm directed against
le gehtIeInon who had charged that the pro-
@ s0., OF the roads had made money put OF the
ianorous picture Of these men. iu the place of
ns builders OF the road. coming to Washington
s'f TO the Treasury the money which they had
ntAeuiOu,ly made in their project. Would
ny havedGne 1t ~ he asked increduluusly. Mr..
aeanson said the practical question before tho
House to-day was how could the Government
otits money! II the roads were forced TO q
we u was u dsmonstrable fact that the pro-
eeds OF the sale would not pay the first mort
tage, iet alone satisfying the Government In
,Ss%eeness. The only feasible and practicable
sbI.i 70 90 was 10 give the companies time In
MI Cooper, Rep, WIS.,, who had been re-
t t, 10 by Mr.. johnson as being one of the
u,Nes OF the railroad constructors, said that |
~: Johnson alone. OF all the California delera-
S.n, haa championed the funding bill and had
N.Y. votes The largest majority given against
shspublican Congressional candidate in Calf |
snnA Tor years. Mr.. Cooper referred to the
W. profits, made by the constructors OF tho
r NJ nearly 500, 900. 900 land contemptu-
salI dismissed the argument on their behalf,
a~d upon the risk" they took, by the state
sst That they did not invest q cent OF their
ies general debate against the bill was closed
Mr.. Bell Pop. COLI.
p,Ssaa Hepburn (Rep. Ia. q member OF the
..@Iuo Railroads Com mittee, made the closin:
uyyuheht In favor of the bill.
.as then rose. and the House, I'M
~ rules, took "A recess until X O'Clock, tho
"eal,s session 70 be for tho consideration Of