The times., 1897-07-13
THE UNION PACIFIC SCHEME
Dir. Morgan Makes a Great Speech
Attacking the Fitzgerald Con-
Public Money Hawaiian
Treaty in the Senate Today.


made between the President and the
reorganization company, of which Louis
Fitzgerald is chairman.
Mr. MoIgan's contention was largely
MAT all moneys, such as the item Of
$4,000 in the bill payable into the sink
ing fund of the railroad, should be so
paid as not to fall into the hands of the
new organization Mr.. Morgan did not
Inince words when talking about the re-
organization scheme. The debate ended
by Mr Hale agreeing To withdraw the
objectionable amendment as it came fTom
fha House.
Another significant thing done yester-
day was that the several hundred bills
which annually come up TO be tackled on
10 the deficiency bill were ruled out yes
teTday by the Vice President on point
of order Iaade by Mr.. Hale, who reported
a resolution, the effect OF which is that
all of these bills (the good ones) will be
taken care Of at the next session OF Con-
gress, when they will be passed.
The Secretary OF the Treasury sent in
tabulated statement of the expenses OF
the Government for 1886, exclusive OF
the expenses for the sale of bonds
The bills introduced Were largely pen
sion bills OF minor note.
Mr.. Butler called up his resolution asking
that circular letter be sent TO consular
representatives asking them to furnish all
Information possible TO this Government
relating 10 the working of postal telegraph
systems.
MT. Hale resumed consideration of the
deficiency bill. The debate was suspend
ed on Friday when Nj. Hale objected 10
the placing of private claims On the bill.
Mr. Hale made the point Of order against
the several hundred introduced that they
Were not permitted TO be considered 10y
rule 16
Mr.. Chandler addressed the Senate on
the subject OF private claims. he sad
that he had several himself, but after
looking over the great batch of those to
be presented, and feeling them 10 be es-
sentially private matters, he would not
urge those he had in hand himself
Mr.. Turner took issue with Mr. Chandler
on his inieTpre etat:on of what is a private
claim. MI Turner did not think that any
claim arising under existing law" OF
which had d judgment lien against the
Government, could be regarded us private
in the ordinary sense Of the word. Mr..
Turner argued that the claim introduced
by Mr. Foraker on Friday was not il
any sense q private claim.
The Vice President sustained Mr.. Hale's
point Of order, and announced that all Of
tie claims would be considered at the
next session, including all just claims. and
passed in d general bill A resolution 10
this effect was agreed to.
There was 8 vigorous attack made by
Senator white on Senator Gears proposi-
tIon TO pay 81 I,310,427, balance due on
judgment in favor of the Southern Pacific
Company.
An amendment was offered by Mr.. Allen
that the money appropriated shall be re-
tanned in the Treasury until the final al.
1rstmeut OF the litigation relating to this
company and the Central Pacific Railroad
Company
MT Chandler said that the attempt To
pass the amendment on an appropriation
bill would certa inly fail.
MT. Gear maintained the duty of the Gov
eminent TO pay the claim promptly After
Cousidera bic discussion, which was similar
TO that held last year, Mr.. Gear withdrew
the amendment which, however, would
have been otherwise defeated by motion
by Mr. Hale to lay the amendment OF the
table
Mr.. Morgan introduced an amendment
intended to protect moneys by law payable
20 the sinking fund OF the Union Pacific
Railroad Company. Moneys due the com.
pany, he said, should be paid into the sink
ing fund and not to the new corporation
He challenged anyone 10 show by what
authority the President is TO dispose Of
this sinking fund. 1t was in fIagrant
violation Of the statute. By what authority
did the President propose to pay money
to Louis Fitzgerald, the chairman OF the
reorganization committee OF the Union
Pacific Railroad Company The Pa
cific Railroad committee had ordered that
certain things be undone. And now comes
the effort IL proceed on an appropriation
bin. IT was scandal that needed action
by this Congress. involving the robbery
OF S3o,o00,0o0 from the United States
That is hard word, Mr. President"
said M. Morgan, but / use il. Let this
Congress adjourn without taking hold OF
this transaction and rectifyng it. and
the Government of the United States, /
say, viii lose S30,000,000 The people
will hold the Congress to an account for
Its action in this matter, because every
cent stolen from and swindled out of the
Government come at last out of the
pockets of the people"
MI Morgan showed that there was no
agreement setting forth the details of
the great transaction or sale of the Union
Pacific over its sinking fund and fran
chlscs. The whole gigantic transaction
was based on four letters, one of which
was unsigned. Mr.. Morgan directed a
great part Of his remarks to showing the
rise Of the Southern Pacific, the Central
Pacific, and the Kentucky Company, al
Under Coils p. Huntington, an now colGes
the Utah Company
MI Morgan maintained that these trans
continental railroads were intended to be
instr umentalities insepara ble from the Gov
eminent, except by act OF Congress- This
he showed by reading the acts of 1862,
1854, and tn Thurmanact. which changed
all previous law, and which created the
sinking fund in the Trea sury of the United
States, 10 be controlled by the Secretary
OF The Treasury The amount OF money in
the fund now was S17,254,0o0, inolud-
Ing bonds aud cash, and it was this that
the President, without warrant Of law, in.
tended 70 pay over TO Louis Fitzgerald
for the reorganization conrnittee Mr.
Morgan held that the forfeiture was a
forfeiture Under a statutory lien He de
MED any equities of the first mortgage
bondholders, and said the position of tnt.
Government TO these bondholders was
regulated by the statutes on the subject.
and not by any equities.
In the course Of the argument Mr.
Morgan referred TO Mr.. Thurston as
counsel for the road.
Mr. Thurston said that he was counsel
for the receivers from SQ9 IN 1SQ5