The San Francisco call., 1897-02-04
Villas Makes a Long Argument
in Opposition to the Mica.
ragua Canal Bill.
By Concurrent Resolution Wednesday
Next Is Set for Counting the
Presidential Vote.


election, and who was warmly welcomed
back by Senators of al! parties.
A bill permitting Major General Alex
McCook and Captain George Schriver.
U. S. A, to accept medals from the Rus
sian Government was passed.
The resolution heretofore offered by
Allen (P.) OF Nebraska looking to the de-
lay or prevention of the judicial sale of
the property of the Union Pacific Rail-
way Company was taken up, and Thurs
ton (R.) of Nebraska addressed the Senate
on the subject. He quoted decisions OF
the Supreme Court of the United States
to the effect that the Thurman act applied
only to those portions of the Union and
Central Pacific roads on which guarantee
bonds had been issued.
The Government of the United States
had never issued guarantee bonds on the
Kansas Pacific or on the Denver Pacific,
whose united lines extended from Kansas
City to Cheyenne, and therefore, in deal
ing with the present situation there was
but one corporate entity (the Union Pa
cific), while there were three separate and
distinct legal entities. In regard to the
Omaha bridge and its approaches, new
Pacific Company to issue 50, 500, 600 in
bonds for that purpose. the bridge had
cost about that sum, but a new double
track bridge costing about 81, 600, 600 had
been built nine or ten years ago. These
bridge bonds had been paid from time to
time, until now only about 1000 900 of
them was due. 1t therefore happened
that the Omaha bridge and all the ap-
proaches on the east side of the Missouri
River were not covered by any Govern
ment lien, and all the terminals. all the
sidetracks ana all the bridges were cov-
cred by the frst-mortgage bonds of the
company. The lien of the Government,
Mr.. Thurston asserted, was subordinate
to the lien of the first mortgage, which
had the right of foreclosure and the right
to take possession of the property.
He had no doubt that the United States
could supplement its lien by subrogating
itself for the mortgage, but that was to be
looked at from business point of view.
The offer made to the Government, Mr..
Thurston said, would amount to some 56
OF 81 per cent OF its entire claim and the
question was whether it would not be bet
Ter to accept than offer TO pay $36 600, 600
for 1892 miles of railroad in order to go
into the railroad business.
Morgan (D.) of Alabama asked Thurs
ton whether he held that the executive
branch of the Government had the right
to make any bargain or agreement such
as had been suggested.
Thurston said he made no such claim.
He had serious doubts whether Con-
gress could create a new Federal cor
poration to operate the Union Pacific
ton was made the road was run through
the Territories of the United States. Now
all those Territories were sovereign States
and in them, at least, there were consti-
tutional prohibitions against the owner
snip of land or the operation of railroads
by any other than domestic corporation.
In the discussion of the question of fore
closure suits he was asked by Allen Pop
of Nebraska whether the Attorney-Gen-
eral had rleht, by virtue OF his Office and
without any authority from Congress- to
bind the Government by putting IN an ap-
pearance in these foreclosure suits.
The reply OF Thurston was that the
right of the Attorney General to appear
in any suit in which the Government had
an interest was absolutely beyond ques-
tion, irrespective of any of the legislation
on the subject. He added that the Gov
ernment could be brought into court by
order of the court, and that that had been
done in these foreclosure suits. He ad-
mItted that Congress might take iurisdic-
ton over these suits from the Circuit
Court, but what wanton, unauthorized,
des potic use of power that would be. Now,
when the uttermost rights of the Govern
ment were in possession of its own courts
who was it, or what business interests was
it. that said. mo, no; bring this back into
Congress. Make it once more theme of
political agitation, as it has been for the
past twenty years?"
Thurston was still speaking when the
morning hour expired Cat o'clock), and
the unfinished buslness-the Nicaragua
canal bill-was laid before the Senate.
Notice was given by Lodge (R. of Mas
sachusetts that be would ask action to-
morrow Oh the conference report to the
i'm migration bill.
Under the rules the Allen resolutions
would have gone 10 the calendar, but AL
len asked that they remain on the table. |
1t was well understood, he said, that no
other business but appropriation bills
would be transacted this session. The
bankruptcy bill was in the last stages of
bill was about ready to be nailed up and
put in its coffin.
Aliens request met with no objection,
and the resolutions remain on the Vice. |
table.
Gear (R.) of Iowa, chairman of the Pa
cine Railroads mmlsLee, gave nOtlC6
that as soon as the Nicaragua canal bill
and the bankruptcy bill were disposed of
he would ask the Senate to consider the
bill for settlement of the Pacific rail
roads indebtedness.
The consideration of the Nicaraguan
canal bill was then proceeded with.
Morgan (D.) of Alabama, in charge of
the bill, accepted with some slight modifi-
cations the amendment offered yesterday
bv Teller (R.) OF Colorado, providing that
no bonds should be guaranteed until after
q survey was made and complete plan
was accepted by the President and that no
liability should be assumed by the Gov
eminent if the cost of the canal should
appear 10 exceed $3.50. 000, 600.
Villas (D.) of Wisconsin resumed his ar
gument against the BILL In the course of
an hour and half there were three calls
of the Senate in order TO compel Senators
TO hear the argument, but just as soon and
as often as a quorum was obtained 1t faded
away again.
Villas, however, went on with his speech.
In the course of 1t he was reminded by
Morgan that the Nicaragua canal project
had been indorsed by several Democratic
National conventions. This fact was
brushed aside contemptuously by Villas,
as IAN idle expression introduced into a
party platform, and he said that q simi-
lar Endorsement had been put in Repub-