The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1897-01-08

passed. laSb SESSION To amend tu3 i"""
lating to navigation was taken from the
calendar and passed, with amendments
1t deals with the rules to govern vessels at
sea and on lakes and rivers. A conference
was ordered Senators Frye, Nelson ana
White were appointed oonferees on thespart
of the Senate. The House bill to ameho
the laws relating to American seamen WAS
taken up and substitute for it discussed at
considerable length. No action was reached.
The Senate at $50 adjourned till Monday.
IN THE HOUSE.
In the House today the debate upon the
proposition to refund the Indebtedness OF the
Pacific Railroad company in the
government was begun. The House Went
into committee of the whole, MI.
Payne, Republican of New York, in the
chair. Mr.. Powers Republican of Vermont,
chairman of the committee on Pacific rail-
roads, reporting the bill, said it was a plain
business proposition that the committee
had reported. 1t was ixtended to appeal
only to the good business sense of the House
He first addressed himself to the history OF
the Pacific railroad enterprises and the
legislation in reference thereto, which hao
its beginning in the act of July 1, 1892. Ihe
benefits ACQUIRING to the government and the
people from construction OF the ROADS were
graphicly sketched by Mr. Powers.
He declared his opinion to be that the
railroad companies had discharged every
obligation imposed upon them by the gov
ernment; that they had fulfilled every con-
tract made by Congress.
Mr.. Powers said on the first of July next,
to which date the bill was to apply, the
Central Pacific company would owe the
governments $57,9O4,l III and the Union "a
cific s5s, ,2s9, 1893. Should the government
foreclose the mortgage, which meant q long
litigation and an increase OF the debt OF the
government by between sixty and seventy
million, to pay off the underlying first mort
gage, In order to enter upon very ooupt-
full experiment of operating the roads upon
the government account.
The wiser method would be for the cred1-
tor to determine the debt-paying ability OF
his debtor and make a settlement with him
on that sbasis. That was that the Dill
proposed to do.
NJ. Lacey, Republic an of Iowa, asked why
a dividend of four per cent was allowed on
the stock while the government was to get
but two per cent for its bonds, which were
ahead of the stock. "Because," answered
Mr. Powers, ewe want the stockholders to
undertake this obligation, and they wont
do it unless they are assured of reasonable
return upon their. money!
The attack upon the bill was opened by
MT Hubbard, Republican of Missouri, who
had prepared the views of the minority of
the committee. He called attention to the
provision of the law of 1862, which required
80 OH Of tI,kaa lf,1.qfi iOnC
should be paid in cash. The facts were he
said the Union Pacific was capitalized at
$50, 800, 900, of which but 16 per cent was paid
In ;the Central Pacific at S6s, ,000, ,00O of which
ten per cent was paid in the Western Pacific
at 81, ,9O0, 900, of which q per cent was paid
in; the Kansas Pacific at $9,60O.0OO, of which
not a cent was paid in. In the construction
of the Union and Central Pacific roads
there accrued to those in charge, profit
of S62, 900, GOO. There had been paid in diyi-
dends on the Union Pacific, including the
Kansas Pacific, $2s,OO0.
ue claimed the provisions of the bill were
not the best offers made by the companies.
The Union Pac ific he said was now paying
| 81, ,000, 500 900 year, but by the terms OF the
bill Its payment would amount to but
81, ,35O, 900 a year, running over period OF
SO years. The fatal point in the bill was
the failure to make a continuous mortgage
upon the property of both lines from the
Missouri river to the Pacific ocean. Mr..
Hubbard said all roads indebted to the gov
eminent should have been brought into
court and the mortgage foreclosed.
Mr.. Bell recommended as an amendment
of the committees bill proposition to ex-
tend the ind ebtedness of the companies Tor
| a reasonable period at per cent interest,
! the corporations to give the government
first mortgage instead Of second.
The committee rose. MI. Bell presented
his substitute for the committees bill in
accordance with the plan outlined in his
| remarks, and it was ordered printed. A
substitute was presented by Mr.. Harrison,
Democrat of Alabama, to be printed.
| The House then adjourned.