The herald., 1897-02-02
HARMON FAvORS THE PLAN
But Desires No Interference With the
Union Pacific Settlement
The Santa Fe Ordered to Quit Monkey
ing With Grain Rates-Attor-
new McNaught's Claim
Associated Press Special Wire

a commission to settle the relations OF
the government with the Pacific roads.
The attorneygeneral is in favor of the
plan, but desires that the bill be drawn
so that the negotiations now under way
for settlement of the affairs of the
Union Pacific should not be interfered
with. 1t is probable that the committee
will accept an amendment drawn by
representative Harrison of Alabama,
providing that the pending negotiations
be not affected b ythe bill. The attorney
general gave the opinion that if COM
mission was created which would be
empowered to carry to a conclusion the
settlement with the syndicate which
stands ready to take the Union Pacific,
the syndicate might be induced to raise
it's bid in order to avoid delay in taking
the matter through the courts. The
commission contemplated in Mr.. Harri-
sons bill would be able to carry on the
settlement which he has begun.
1t is, however, doubtful, whether the
Harrison bill will be considered by the
house this session, because of the time
remaining. although the committee may
report it to the house tomorrow.
ORDERED TO QUIT
WASHINGTON, Feb. 1.-The inter-
state commerce commission, in an opin-
ion by Commissioner Prouty, today an
nounced a decision in the matter of al
legged unlawful rates and practices in
the transportation of grain products by
the Atchison, Topeka and Santa Fe
railroad company, the Chicago and Great
Western company and others concern
ing transportation practice of the Chi
cago and Great Western company. This
company, owning the entire stock of the
Iowa Development company, which
had been organized for the purpose of
holding the title to certain lands of the
railroad company, caused grain to be
purchased in Kansas City in the name
of the Development company, trans
ported over the lines of the railroad
company to Chicago and there sold upon
the market. The Development COM
pany, the commission finds, had no bona
fide interest in the transaction. Neither
the railway company nor the develop
ment company purchased the grain for
the purpose of ownership, the whole
transaction, the opinion says, being SIM
ply device to secure its transportation
at other than the published rates; and
the only rate paid was the profit upon
the transaction, which varied with each
shipment.
The committee held that this constitu-
ted a violation of the second, third and
sixth sections of the act to regulate COM
merce and an order directing the rail-
way company to cease and desiSt from
such violation has been issued.
M'NAUGHT'S CLAIM.
MILWAUKEE, Wis, Feb. 1.-The
Northern Pacific Railroad company filed
its answer today in the suit filed by j.
w. Mcknight, late counsel of the COM
pany and aNterwardE of counsel for
the receivers.
Col McNaught is suing to recover
$4,000 for services rendered the receivers
and also for an unfixed amount for SER
vices as a lobbyist before the North
q q cri N o q
pany not only denies the liability, but
asserts that there is more than s15500
due and owing the company from Col.
McNaught, and which is specified in
separate items as offsets.
Among the items are an alleged over
draft of $2500 on his account with the
receivers; a voucher for $500 signed
by him for expenses and special counsel
fees for which an itemlzed account has
not been furnished, an excess of 1925 in
commissions on issue of collateral trust
notes.
1t transpires that Paul Schulze, who
was general land agent of the COM
pany, was short in his accounts, and
that Col. Mcknight was surety on his
bond. Col. McNaughts liability, the
answer charges, is $4,000, which has
never been paid. Further than this,
CoL McNaught is accused of conveying
to himself while president of the North
ern Pacific and Manitoba company val
liable property i'll the city of Winnepeg
for which the company paid s23,731.
The property is improved and Col
McNaught receives the income.
In the answer it is asserted that in
the event that Col. Mcknight was enti-
tied to recover for services as a lobbyist,
his claims would not be prior to the
liens of the mortgages and not valid as
against the new company. No account
ing is demanded from Col McNaught,
the company simply asking that the
claims be dismissed.
INEFFECTUAL PROTEST.
CHICAGO, Feb. 1.-The protest of the
junior security holders of the Atlantic
and Pacific against the foreclosure pro-
ceedings to be instituted against that
road in the near future will have no eff
feet, according to officials of the Atch-
1son road, unpon their control of the
Atlantic and Pacific. The agreement
between the Atchison and the first mort
gage bondholders is not for the purchase
of the road at the forecloure sale but
for the purchase of the securities held
by the first mortgage holders.
In making the purchase of these secu-
rites the Atchison road simply steps
into the place held by the senior Sc
curity holders. 1t will now press the
sale of the road, and when it is sold bv
SN.N - ~ VI tHc Noui l, tile AlcUl5OH TOaQ
will bid it in, just as the first mortgage
holders would have done.
The report that ]. j. Hill of the Great
Northern is to have an important voice
in the affairs of the Northern Pacific
road is again going the rounds This
time the story is that Mr. Hill has Sc
cured or will secure sufficient of the
securities of the Northern Pacific to
prevent all chance of war between it and
the Great Northern by his influence
although it is said that he will not have
a controlling interest in the Northern
Pacific road
THE SIERRA RAILWAY
SAN FRANCISCO, Feb. 1.-Articles
of Incorporation of the Sierra Railway
Company of California were filed today
with the county clerk. The company
proposes to construct a railroad from
point near Oakdale, in Stanislaus coun-
ty, to the town of Angels, in Calaveras
county. The estimated length of the roaG
Is siXty-five miles Intermediate roads
are to run to Modesto, knights Ferry
and La Grange in Stanislaus county and
to Coulterville i'll Mariposa county. The
aggregate length of the intermediate
lines Is nifty nine miles
The incorporators and directors of the
company are: Sidney D. Freshman of
San Rafael, John NJ. Bonner of Stock
ton, Charles Gross of Alameda and Ed
mund f. Simpson and James Henry of
this city. The capital stock Is 81, 900 600
of which $4,000 has been subscribed by
Mr.. Freshman and S1S,5O0 by each of the