The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1897-04-09
PACIFIC RAILROADS DEBTS.
Gear Makes a Report Of the Bin To Author
ixe IA Commission To Adjust Them.

Washington, April N.-Scnator Gear OF
Iowa to-day made a report OF the blll 10
authorize commission consisting OF the
secretaries OF the treasury and the lntc-
rior and the attorney general. TO adjust
tn, debts OF the Pacific railroads TO the
government The report reviews In detail
the financial conditions OF the roads ana
their relations to the government. and
expresses approval Of the plan TO the eN-
exutlve officers OF the government with
the approval OF the government TO make
an adjustment with the owners OF the
property. Referring to the provisions ol
the bill that equal facilities shall be at
fordcd to all connecting lines 1t says: III
has been frequently asserted that fore
closure proceedings pending In respect to
the Union Pacific properties were likely To
culminRte In the acquisition OF those prop
critics In the interest of one out OF sew
eral lines reaching the eastern terminus
OF the Union Pacific at or near omar ma.
This committee has thought that what
ever the results OF the foreclosure of the
first mortgages might be in any settle
ment which might he made with the COM
pgnies under the authority OF congress.
these provisions should be Inserted In or
der to make sure that the roads affected
by the settlement were kept open as pub
llt UlNHNuNN ltl the luillIt 1bI tue bfu'nl
OF all present or future railroad connec-
tions. Upon the foreclosure OF the first
Mortgages the report holds that the gov
ernment would have no rights except for
the transportation OF troops mails and
supplies guaranteed by the original sub
sidy acts. lf no other consideration except
the guarantee of equal facilities 10 all con-
meeting roads was concerned the commit
tee holds that this would Justify a settle
ment by commission. as these privileges
could hc acquired rs u result of the fore
closure of the paramount first mortgages
Z he committee considers that any acuui-
stion OF the roads by the government
would be dsadvanlageous and that fore
closure of the government lien can be ex-
pected to result only In the loss OF part
OF the debts Of the government. The ap-
pCintment Of committee would save the
government from being forced from reluc-
tantly commencing foreclosure proceed
inss for want of authority to make a more
advantageous settlement"
The bill IL Is explained deals only with
the subsidy bonds on the Central Pacific
to point tiye miles west of Ogden. "A dis
tance Of 13iia miles aud the Western Pa
cihc from san Jose 10 Sacramento i2}
miles. all claims upon the Union and Kan
sas Pacific being now before the courts
for settlement. The first mortgage bonds
on the Central Pacific are 81, $4,000, West
ern Pacific $4,000. subsidy bonds; Ccntr II
racifls. S2i.sSi.l2o; Western Pacific. $3.50
Jd0 The companies are said TO have fully
complied with the terms of the acts OF
lN6s and 1854 and the Thurman act. but
while their earnings have enabled them TO
meet operating expenses and interest on
the first mortgage bonds. they have hocn
unable uTONst1p for The tlrht "A IY fspN
crnment. The roads themselves arr held
TO he Inadequate security for the liens on
them, which amount to about si0onVl a
mile.