The record-union., 1897-01-08

tend over the terminals of the Union
Pacific, including the Omaha bridge,
the Sppreme Court having decided in
the case of Hall VS.. the Railroad Conn
pany THAT the Union Pacific began ait
Council Bluffs and ended at a point five
miles west of Ogden, Utah. This, he
said, overthrew the position of Powers
and those who held with him.
Hubbard went with much detail into
some OF the mortgage transactions of
the Union Pacific, which 11e said showed
some strange things. It might be that
they We're intended to hide or cover UP
something, but he could not assert 1T
Tor 1t was almost practically impossible
10 get information regarding these OPP
eratlons. They did give weight ito the
charge that the company was arrang-,
ing to settle with the Government Pow
ers, he said, had been asked a pertinent
question as to why the bill did NOT re-
quIre the Union Pacific Company to
mortgage its bonds, stocks and other Sc
curities as it did require the Central
Pacific Company to do, and he had re-
sponded THAT the requirements upon the
two companies were the same. Hub
bard denied that statement. The bill
required the Central Pacific Company
only to mortgage its bonds and stocks.
AIS a matter of fact 1T did not have a
dollar of such securities in it's posses
sion, while the Union Pacific, hold
ing about ninety millions of these Sc
curities, was absolved from pledging
them to the Government. The bill would
not result in any practical benefit to the
Government 1t would simply extend
for eighty -three years the period within
which the companies could escape pay
ing their debts and increase the sum
which the Government would be then
required ITO pay over S100000,0O0 to Sc
cure the property which would now be
acquired for less than $30,00O,OO0.
Bell CD of Texas also presented
some views dissenting from the report
OF the committee. He said that the
stockholders of these corporations were
not IN position to come to Congress
anc ask of it any consideration what
ever, much less ito ask a. grant of sub
stantial character as a matter of right.
And lit astonished him to know that
there was any one in the United States
who believed that the MEN who built
the railroads and were now stockhold-
ers had dealt fairly or honestly with
the Government Every proposition
looking to the establishment of a sink
ing fund had been defeated by one
means or another. After the Thurman
Act was enacted the Central Pacific
was leased to the Southern Pacific, so
that there was no % per cent. of net
earnings left to pay into the treasury.
The roads had not been operated so
as to make money for the owners, and
~ %l,,
the corporations were insolvert and
unable to pay their debts. He thought
it was preposterous to propose such a
settlement as that provided in the bill.
The Government was asked to prac-
tically give them the use of the 3 per
cent. upon the total debt of SIP, 2,000,-
GOO, the roads not being required to
do thing in return.
MORGAN'S BILL.
WASHINGTON, Jan. Morgan
Cd of Alabama to-day introduced in
the Senate a voluminous bill, which
among other things directs the Secre-
tary of the Treasury to issue bonds
in such amount as may be necessary
TO take up the first mortgage bonds of
the Union Pacific and Central Pacific
Railroads. These bonds are to run
thirty years, subject to the payment Of
interest thereon during the time of
such extension, the rate of interest be-
ing fixed at 3 per cent. These rail-
road bonds, when exchanged, are to
be kept in the treasury as the property
Of the United States, and shall con-
tinue to be secured by all liens and
rights of priority that now attain to
tbGY1 aC n +bn.
or any other person or corporation
After the appointment of trustees
provided for by the bill, the Secretary
Of the Treasury is directed to take i'm
mediate possession of the whole line
of railroad and telegraph of each COM
paEy, rolling stock, etc, for the use
of the United States until Congress
shall otherwise direct, and turn the
same over ito the Board of Trustees
created by the Act, to consist of nine
men to be nominated by the President,
four of whom shall reside east Of the
Mississippi and four west, the present
board to be named regardless of geo.
graphical locations. The trustees are
TO hold office four years, and are subject
to removal for cause stated in writing.
The bill provides for the establish
nlent of a sinking fund for the final
redemption of the bonded debt, into
which shall be paid annually a sum
equal to / per cent. of the entire bond
ed debt Of the United States issued un-
der the provisions of this Act
The remainder of the bill relates 10
details, all Of which has been hereto
fore published.
SOON TO BE TAKEN UP IN SENATE
WASHINGTON, Jan. THE Repub-
lican Senatorial Steering Committee
net this afternoon with Senator Alli-
son, Chairman, present. 1t was decid-
ed that when the Oklahoma free home
stead bill had been disposed of the
Pacific railroad funding bill should be
made the unfinished business, and
maintained as such until final action
was had. No other order of business
was suggested the committee being
satisfied to determine upon one meas
ure at a time, the members of the DEM
ocratic committee having been pre-
viouSly consulted and the taking up of
the funding bill was found to be sat
!sfactory to that side Of the chamber
The measure is one of such Importance
that Senators believe 1t should be dis
posed CT in some way at the earliest
practicable moment
HUMANE SOCIETY.