Evening star., 1897-03-29
A M N ORlTY REPORT
Senator Morgan Against Adjusting Pacific
Railroad Debts by Commission.
HE Claims That the Government Owns
the Roads, Which Are One
Continuous System.

senator Morgan of Alabama today pre-
sented the minority report on the bill re-
Gently reported favorably to the Senate for
the adjustment of the Pacific railroad debts
through the agency of a commission. Mr..
Morgan gives the circumstances of the in
ceptlon or this national highway across the
comment, and maintains that it was es-
sentiaHy government undertaking in
trusted to private hands. just as national
banks are instrumentalities of government
although in private hands. To secure the
government against a default of these cor
porations In the payment of the bonds is
sued to enable them to build these railroads
there was provided in the charters a dis
tlnct and separate lien upon all their prop
erty, of every description, in favor of the
United States. The statute provides for the
%.olIeIeure % on DEFAULT of payment, and
transfers the title and possession by act
OF law TO the United States. The govern
fnent Is thus substituted in absolute and
unconditional ownership of the cor7,orate
property of every kind in place of the
STOCKHOLDERS, whose ownership thereurs,n
ceases.
The report then points out that this bin
PROVIDES an agreement with tine owners
of the Pacific railroads without declaring
VINO owns them, and deals with them a. IL
the United States government was not the
owner: Ihe bill also destroys Ire unity
Oh TINS great highway and proposes to
Union Pacific railroad. No court could
ignore nor violate the desired pubic pclicy
lhat these roads constitute one continu-
Gus system.
This is an effort to have an act of Con-
gress change the present law and sucb
an act should never be passed. Mr.. Nor
gan states in the report that he will offer
an mendment in the Senate providing
that the provisions of the bill shall annIy
to both the Pacific railroad compaoias
The senator says that if the fatal act of
separation between these roads has not
reached conclusive stage by reason of
agreements made by the president for the
disposal of the governments Interests in
the Union Pacific railroad then il should
be intercepted and placed in the hands
OF OF TINS proposed commission. The United
states can 10 more afford to have his
great highway pass beyond its reach than
Great Britain could afford to leave the
Canadian Pacific railroad which. I'm mil
itary sense, is the spinal column Of the
empire, pass into the hands of the Ameri-
can government.
The nature of such a transaction condemns
IS as usurpation of authority by the ex-
ecutive that has no support in law. 1t is
100 much to ask that Congress shall stand
by and witness a disposal of this vast prem
erty under a private agreement between the
executive and great railroad combination
without even protest
The value of the whole property s no.
adequate compensation for such demoraIi-
zatlon in the abuse of official power. Mr..
Morgan contends that the destruction of
TINS unity will enable great railroad COM
tlnatlon to control transportation from
New York to the Pacific ocean making the
people along the routes mere feudatories of
these great railroad kings
The report asserts that the real occasion
Tor this bill is to avoid the disclosures and
to provide for the conformation of frauds
ard breaches of trust on the part of the
owners and directors of the Central Pa
enc railroad, which If they Were dealt
with In the spirit Of justice would fasten
iiabilitles upon these men that would far
exceed the vast sums which the COMPANY
owes TO the government"
Mr.. Morgan refers to the enormous
frauds perpetrated by both of these railroad
companies upon the United States" he
remedy for which is easily in the reach
through the tribunals of justice" The re-
port then urges that the President should
not be left as final umpire. as proposed by
ms Dill, in a contest between crime and
public justice" The responsibility rests on
congress, and 1t should not unburden IL on
the President Mr.. Morgan adds that al
though the result would disappoint the pow
erful order of railroad wreckers Vet an
easy adjustment is open by the passage of
Senate bill DID, The report closes with a
statement as TO the powerful engine which
the committee bill places under the direc-
ton Of the President and cabinet