Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-09-09
SINKING FUND SHORT
Senator Harris Charges Against Pacific
Railway Management.
S0bsidies Paid to the Steamship Lin.
Conference With the At
tOrney General.

Senator Harris of Kansas. who takes a
/ the Union Pacific railroad. had a talk with
Attorney General McKenna this morning.
The situation was gone over fully The
| matter Of an appeal from the decree of the
court at Omaha ordering a sale of the
Union Pacific was talked about .but Sem
ator Harris declined to say what had
passed. The Attorney General informed
him. as he has all others. that he has the
question OF an appeal under consideration
but has not decided what he will do.
Senator Harris expresses the belieS that
the sinking fund of the Union and Gem
tral Pacific roads in the hand of the gov
ernment is short in the neighborhood of
S2,ooaWD by the payment of subsidies by
these roads to the Pacific Mail Steamship
Line, operated and controlled by the same
men. These subsidies were charged to the
operating expenses of the roads. and the
amounts did not go to the net income from
which % per cent is taken to cover into
the sinking fund. Secretary Lamar called
attention TO this i'm 1SS5 and recommended
that something be done. The subsidies
have been going on ever since.
Senator Harris hopes that the Attorney
General VIII take the appeal, that will
give time for Congress to express its opin-
ion The senator does not know whether
the House would pass a resolution disap-
proving of the sale of the road under the
proposition of the reorganization commit
tee. He does believe. however, that such n
resolution would pass the Senate. This, he
thinks, would have the effect of checking
the projects of the reorganization commit
tee.
IF the sale of the road is prevented" "
said Senator Harris, the plain duty of the
government is to take the road and operate
1t. / fully believe that if the goVernmen mt
q raj alg
would then see that business was meant,
and would pay the full amount due the
government. All they need is to be shown
that the government does not propose TO
be defrauded of what is due II. The law
fully directs this. Under the law, there is
only the course of forfeiture on default or
to take possession"
Senator Harris was asked if he thought
it probable that the President and his
cabinet would consider the matter before
any action is taken.
''Of course, do not know" the senator
said, but the matter il grave enough for
the President to give ii the most serious
consideration
Attorney General MoKenna- will reach
70 conclusion as 20 an appeal for some
time. 1t is probable that he will lay the
matter before the President and cabinet,
as there are numerous important uues-
tions to be considered besides that of an
appeal.
The committee completed its work YES
,erday afternoon and adjourned A letter
was sent to the Attorney General bear
ing on the question of the sinking fund
of the Union Pacific. In 1855 il is stated
Secretary Lamar reported that up to that
time large amount of money. approximat-
ing S3o0,Go0, paid to the Pacific Mail Steam
snip Company and charged TO the item of
operating expenses, should have been COW
cred into the Union Pacific sinking furd
AS the same practice probably has con-
unued since that time the amount that
should have been covered into that fund
has continued 10 increase. As the under
standing Is tnat the sinking fund is to he
included with the other property in the
sale of the road the committee deemed
1t proper that the Attorney Generals at
tention should be called to that fact. This
was the only question touched upon by
the committee-that of the investigation
OF the alleged fraudulent issue of land
patents to the Pacific railroads going over
until December.