The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-01-08

The question Is said he shall we
undertake 70 collect these debts or ruth
iezsly throw them away You VIII De re-
Ealsd with bitter attacks on individuals
haye nothing 10 do with the fight be-
tween g 2. Huntington and Mayor su-
tro We must address ourselves 10 the
profession OF the governments interest
ana We present this bin as the best pos
sible plan
Hubbard Attacks the Bill.
Hubbard. Of Missouri. who had charge
os ths opposition % the measure followed
Powers with an extended argument He
plaaeef Al once into &he subject He
agreed with Powers. that the question
was purely ore ot business The corstrs1c-
tors OF the Pasiac roads. he said, had
esrnad rrofifs q 50 0)A. 90 and tire roz as
had pad s4s co 90 IN dividends. His pGr-
pose in citing these facts was 20 show that
those IN control % the companies were
strong. While the corporations pleaded
bankruptcy and inability to pay. He based
his argument against the bill on three
points: That the Pacific railroad commits
sion had not learned enough Of the ccndi-
ton OF the companies 70 De able 70 tel
the house what $ best 70 do; that the
companies made offers before the commit
tee and are ready 70 concede demands
very much better for the government than
those embodied in the bill. and that the
propositions IN the bin are neither a good
nor safe settlement for the government.
This. he said, would net the government
si.4oo.co annually in interest on s1o.coo 90.
with the sSs coo at maturity, OF slS.
NI0 eos In fifty years. counting the pre-
ferred stock as worthless. BY process OF
comparison. he said. the offer the commit
tee rejected was SIS ooo. .eoo better than the
government would accept under the bill.
on the other hard. he said all the Cali
foFnfa delegation, with one exception. op-
posed any bill that would vest the Cen
tral and Southern Pacific under the same
control. The government directors, W. J.
Coornbs and e e Anderson. had advo-
Gated foreclosure by the government and
a union OF the Central and Union Pacific.
Secretary Of the Interior Smith had advo-
Gated foreclosure Hubbard discussed al
length the Pierce plan. which. he de-
clared was better than the present BIZ.
TIE first offer OF the Union Pacific reor-
ganization committee, he said, was se5.-
O0o 600 first mortgage, fifty-year per cent.
bonds which would have given the gov
ernment three-eighths OF the first lien on
all the property OF the Union Pacific and
Kansas Pacific. $50 00o.0oe OF the preferred
stock out Of ST5 0d9. No on the balance OF
the claim on a per cent. installment
He insisted the main lines of the Cen
trail ard Union Pacific should be united
for the support OF the common security
which the government must take on both.
All admitted they were worth much more
as a through line than the sum OF their
values If separated. The average net
earnings OF the Union Pacific for the past
ten years he said. was s.. 500 600. yet the
committee bill was based on earnings OF
but 81 CO. coo. He declared most emphat-
ically that the governments lien a. pres
ent did not cover the terminals. He said
Junior incunbrance. If IL did the govern
ment vas forced practically 10 guarantee
the first mortgage sll0eo0.0oa or lose its
claims. He also insisted that any bill
should deal with the foundation titles and
the holders OF them. The Union Pacific,
he said was irretrievably ruined because
OF its guarantee OF interest and dividends
on bonds md stocks OF other companies.
The BILL he said. admitted Ii In the sixth
section. and the government simply got
the promise OF an iDsoivent for post
moriem performance. IL was ridiculous
he said, 70 rely On such bill and decline
to foreclose.
Hubbard criticised severely some of the
nnanciering OF the Union Pacific, espe-
cialiy in the matter of certain liens given
and collaterals deposited He went into
the question OF the diversion of business
TO the Southern Pacific. The absolute net
earnings Of the Central from 1874 20 1854
were So go. and during that period IL
paid ss40C0.oo0 in dividends. The road was
then almost entirely in the hands OF
Stanford Huntington. Hopkins and
Croeker. so that they received practically
all Of the dividends. When they had un-
loaded. the Southern Pacific was built.
which leased the Central then the latter
stopped paying dividends. This lease
would continue under this bill Under
the hill the Central Pacific debt would be
extended eighty-six years. that OF the
Union Pacific eighty-three years, and the
government get worthless second mort
gage.
When Hubbard concluded there was
round OF applause from the opposition to
the bill
BELL would Overlook the BuiIders
Bell of Texas. a member Of the Pacific
railroad committee. then took the floor
also in antagonism 70 the measure. He
began by saying the builders OF the Pa
ellie roads were entitled % no considera-
ton The scandals growing out OF their
m5nipulations were blot on the eivili-
zation OF the age. None OF those men, he
said. had right TO ask congress 70 ex-
tend Q them the great privilege granted by
this bin. He addressed himself 70 the
question as 10 whether the government
held lien on the terminals He insisted
that the government did and that by ex-
press provision in the original act and
confirmed ny the ninth section Of the
Thurman act. he admitted that the roads
had not been making satisfactory earn
ings Tor years.
"Wny2" he shouted maticallv. Re
cause u was not In the interest of those
~ control 10 IN AXE money for the roads"
applause
That's 1t exactly" cried Bowers Of
California.
Bel said the pending bill proceeded on
the wrong theory. The present earnings
were figured. and the bll made 70 conform
20 the present earnings. He said the guar
antee in the bin OF the Southern Pacific
for 81 ea go WIS made much OF. hut tae
Southern Pacific Of Kentucky was one
thing and the Southern Pacific Of Cali
fornla another. The former made the
guarantee IN the bill, tae latter was the
railroad. The southern Pacific Of hen
tucky vas a mere corporation to operate
railroads. not 70 own them. Il leased the
Southern and other roads"
Does anybody believe" he asked that
thst corporation would not wind I'D its
business rather than pay 81 90 aogf'
BaI described the alleged manner n
waich Huntington had manipulated the
road in bis interest saying az the same
time he had no desire 80 denounce CAPITAL.
fia then explained the substitute he had
proposed. which provided thar II the roads
woaid make fhe United States secure on
paying OF the FIRST mortgage bonds the
government would extend tAa debt any
reasonable peTio8 at par cent. These
roads could Go this, In the course o. his
remarks he said ne ga not want 70 coEs-
u-t tas government ia any way 70 the
doctrine ~ government ownership Of raft
roads q sentiment that was literally ap-
p@g3e3