The record-union., 1897-01-09
Able Argument Produced by Members Of
the Lower House Of Congress
As to Why the Measure Should Become
Law.
A Just Bill Both to the Government
and the Companies, as Shown by
Arguments of Prominent House
Members i'm Debating the Bill.

WASHINGTON, Jan. S.-The second
days discussion of the Pacific Rail
road funding bill of the House of Repre-
sentatives developed much more in
terest from popular point of view. Mr.
Johnson (R) of California in the course
0f speech supporting the bill alluded
to w. r. Hearst of the San Francisco
Examiner and New York Journal
In most vituperative terms. He was an
swered by Cooper R.) of Wisconsin,
who characterized the incident as the
most disgraceful he had ever known in
the history of Congress.
The bill was advocated by Patterson
Cd of Tennessee and Hepburn (R) of
Iowa, and antagonized by Harrison ID }
of Alabama, Boatner Cd of Louisiana,
Swanson CD of Virginia, Mccall R }
of MaSsachuSetts-only upon the rate
OF interest proposed.
Referring to the objections made
against the bill by Hubbard CR) of Mis-
souri, that better propositions had been
made by the companies than that con-
tained in the present bill, Hepburn as
serted that enther the propositions re-
ferred to had not been authoritatively
faction of the committee to be beyond
the power of the companies to carry
out.
Hepburn contended that the PROPOSE
tion for the Government to take con-
trol of the roads would be but the en-
tering wedge in the Populist scheme to
bring all the railroads of the United
States under Government ownership
and control. Referring to the complaint
of the opponents of the bin that the
people of California We're writhing un-
der the burden imposed by Mr. Hunt
dngton and his associates in the man
agement of the Central Pacific Rail-
road, Hepburn asked if it were prob
able or even possible that the residents
of the great city of San Francisco, the
wealthiest city of its size in the Union,
the charges being true, would set su-
pinely down and do nothing further
than complain to Congress?
Powers (R.) of Vermont interrupted
to ask if 1t were not true that the
charges for freight in California were
less than in New England
Morse (R.) of Massachusetts, replied:
''They are, as know from personal ex-
perience in shipping freights.''
In conclusion, Hepburn defended the
committees proposition as the best that
could be secured. 1t increased, he said,
the securities held by the Government,
despite the authorized mortgages, and
in that belief it submitted the bill to the
House for action.
The House went into Committee of
the Whole to-day to further consider
the Pacific Railroads funding bill.
Patterson Cd of Tennessee opened
the days proceedings in brief speech
supporting the bill. He said he did not
subscribe to the theory of the senti-
mental side of the controversy-that the
builders of these roads We're great pub
lie benefactors, opening up a vast ter
ritory to the growth of the Improvement
and settlement of the Nation There
was another side which might be called
the popular side that held these men up
to scorn as public robbers. He did not
subscribe to that view either.
There was no use he said, of dis
cussing matters beyond the pale OF
remedy by Congress. The fact was that
the Government had loaned its credit
to the companies by the issue Of it's
bonds, taking as security for the re-
payment Of the money thus advanced
second mortgages upon certain prop
erty. The bonds issued amounted TO
something over $50, 900, 600, and the Sc
curfty was a second mortgage upon
about 5000 miles of railroad This
mortgage did not include the terminals
of the railroads, an assertion Patterson
said that was in harmony with the
opinion Of the Supreme Court and of the
Attorney General Of the United States
as well. The obligations resting upon
the railroads in addition to the Govern
ment lien amounted TO about So5. 900 a
mile, which together with the causes
mentioned by Powers yesterday made ii
impossible for the railroad companies
to earn and pay the interest on their
debts. not to speak Of the principal Of
the obligations, amounting altogether
TO about S175, 100000 The question
was, What is the Government going
to do with this enormous indebted
ness?"
But two practical propositions pre-
sented themselves, he said. One con-
fernplated Government ownership and
rnanagenent Of the roads, the other and
only alternative a settlement with the
ovrrervs To the first he was unaltera bly,
opposed. preferring, he said, that the
whole debt should be cancelled rather
than that Congress should take the
roads
"An my public life" Patterson said,
"I have been trying TO get the Govern
ment out of the banking business, and
/ must earnestly protest against its GO
ing into the railroad business" Time.
n said, was an important and essential
element in the settlement Of the ques-
ton. The companies should be ac-
corded a period of sufficient length to
enable them to pay the debt In re-
turn for that concession. the companies
included within their mortgages to the
Government all their property, includ-
ing terminals, and about thousand
additional miles of road. He indorSed
fully the provisions of the bill as con-
shutting a just, reasonable ard busi-
ness like basis for settlement. in view
of the earning capacity of the corpora
TORS.
Harrison Cd of Alabama followed in
opposition to the bill He believed that
the time had come for Congress to take
action. but could not support the pend
ing measure, because it was far too ia
ycrable to the companies. The Union