The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1897-01-09
REMINDING
I IS ARGUED.
Second Day of the Hearing
On the Powers
Bill.
CONGRESSMAN EXPRESS
THEIR VIEWS.
Brief Speeches Made For and
Against the Proposed
Measures.
SCME AMENDMENTS WILL BE
OFFERED.
- An Attempt to Consider Other Matters
at the Evening Session Is
Soon Blocked.
sCME AMENDMENTS WILL BE
OFFERED.
An Attempt to Consider Other Matters
at the Evening Session Is
Soon Blocked.

Y WASHINGTON, D. c., Jan. S.-The
Z second days discussion of the funding bill
in the House developed much more inter-
est, from popular point of view.
johnson (R.) of California in the course
of speech supporting the bill alluded to
". R. Hearst of the San Francisco Exam
iner and New York Journal, in most in
gective terms. He was answered by
Cooper Or of Wisconsin, who character
lied the incident as the most disgracefuI
he had ever known in the history of Con-
gress. The bill was advocated by Patter-
son CD Of Tennessee and Hepburn (R.)
OF Iowa, and antagonized by Harrison CD
of Alabama, Boatner CD of Louisiana,
Swanson CD of Virginia, Mccall (R.) of
Massachusetts, only upon the rate of in
terest proposed by Wheeler CD of Ala
bama, and Shafroth (P. and Bell (P.J of
Colorado.
Tomorrow the bill will be under consid-
Grafton for amendments, and several sub
stitutes for it will be proposed.
Upon request of Turner CD OF Georgia
resolution was agreed to iustructing the
Attorney General to add to his last annual
report full copies of all correspondence
and kilograms between the department
and public off GERS and all persons relative
to the great strike in Chicago in 1894 and
the action OF the Government in suppress
ing the same.
The House then went into Committee of
the Whole to further consider the Pacific
railroads funding bill.
Patterson CD of Pennsylvania opened
the days proceedings in a brief speech,
II bo n
subscribe to the theory of the sentimental
side of tue controversy-tha the builders
Of these roads were great public bene-
. factors, opening up vast territory to the
growth of the improvement and prosper
itv 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, discussing 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 its bonds,
taking as security for the repayment of
the money thus advanced second mort
cages upon certain property. The bonds
issued amounted to something over $780,
COO, 900, and the security was a second
I
road. 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 rail-
roads in addition to the Government lien
amounted TO about 500, OOO mile, which,
together with the causes mentioned by
Powers yesterday, made it Impossible for
the railroad companies to earn and pay
the interest on their debts, not to speak of
the principle OF the obligations amount
ing altogether to about $175 O0O,0 600. The
question was: what is the Government
going to do with this enormous indebted
ness?'
But TWO practical propositions presented !
themselves, he said. One contem plated |
Government ownership and management |
OF the railroads; the other only alterna-
tive was settlement with the owners. To |
the first ne was unalterably opposed, pre-
ferring, he said, that the whole debt
should be Cancelled rather than that Con- |
gress should take the roads.
"All my public life, Patterson said, 81 |
have been trying to get the Government |
to 90 out of the banking business, and l !
must earnestly protest against its going
into the railroad business"
1 Tine, be said, was an important and
Nessential element in the settlement OF the
question. The companies should be &C
corded a period of sufficient length to
enable them to pay the debt; in return
Tor that concession, the companies in
cluded within their mortgages to the
Government all their property, including
terminals and about 1000 additional miles
OF road. he indorsed fully the provisions of
the Dill as constituting just, reasonable
and buslness-like basis for settlement. in
vie" OF the earning capacity of the cor
porations.
Harrison (D.) 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 nendino
measure because it was lar too favorable To
the companies. The Union Pacific had
made much more advantageous nronosi-
ton to the Government than that con.
tanned in the bill. The corporation too
he said, was much more able TO comnIv
with the requirements of the pendino h;iI
than was the Central Pacific, and he could
iOI uHNeISlduu why IuSy SHOULD be put
upon an equality. The average member
Of Congress, he said, could not determine
from any date available to him, intelll-
gently, the ability OF the roads to satisfy
the demands of the bill. For himself,
however, he believed the companies were
able to do much more and better than The
majority OF the common Pacific railroads
had proposed.
The roads, he was convinced, could COM
Wy with the terms of the present law and
II was much better for the Government
than the proposed measure. He had pre-
pared substitute for the bill and would
ask The House to consider it; making The
secretary OF the Treasury, the Secretary
oI the Interior and the Attorney. General
committee with power to investigate
ana settle the debt Of the Pacific railroad