The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1897-01-08

consolidation or combination of the two
roads Hubbard asserted that the mortgage
of the Government did extend over the
terminals of the Union Pacific, including
the Omaha bridge, the Supreme Court
having decided in the case of Hall versus
the railroad company that the Union Pa
cific began at Council Bluffs and ended at
a point five miles west of Ogden, Utah.
This. he said, overthrow the position of
Powers and those who held with him.
Hubbard went with much detail into
some OF the mortgage transactions of the
Union Pacific Company, which he said
showed some strange things. 1t might
be that they were intended to hide or
cover up something, but he could not
assert it, for it was almost practically i'm
possible to get information regarding the
operations.
They did give weight to the charge that
the company was arranging to settle with
the company. Powers, he said, had been
asked pertinent question as to why the
bill did not require the Union Pacific
Company to mortgage its bonds, stocks
and other securities as it did require the
Central Pacific to do, and he had re-
sponded that the requirements upon the
two companies were the same. Hubbard
denied that statement. The bill required
the Central Pacific only to mortgage its
bonds and stocks. As a matter of fact, it
never did have dollar of such securities
in its possession, while the Union Pacific,
holding about 500, 900, COO of these securi-
ties. is absolved from pedging them to
the Government. The bill would not re-
suit in any practical benefit to the Govern
ment. 1t would simply extend for eighty
three years the period within which the
companies could escape paying their
debts.
Bell CD of Texas. who also printed
some views dissenting from the report OF
the committee, followed in opposition to
the bill. He said the stockholders of these
corporations were not in position to
come to Congress and ask for any consld-
Grafton whatever, much less ask the
granting of such important concessions.
He knew that there was no one in the
United States who believed that the men
who built the railroads and were now
stockholders had dealt fairly or honestly
with the Government. Every proposition
looking to the establishment of a sinking
fund had been defeated by one means or
| another.
After the Thurman act was enacted the
Central Pacific was leased to the Southern
| Pacific so that there was no IS per cent
of net earnings left 10 pay into the treas
ury.. The roads had not been operated so
as to make money for the owners, ard
therefore it was safe to assume that the
corporations were insolvent and unable
to pay their debts. He thought it was
preposterous to propose such settlement
as that provided in the bill. The Govern
ment was asked 10 practically give them
the use of 3 per cent upon the total debt
of SIP, 600, the roads not being re.
quired 10 do thing in return.
ooh, no." said Bell; ''if the com panies
want any such favor as asked for let them
go down into their pockets, sell some of
the ill-gotten gains, securities and other
property and make the Government Sc
cure and then we will treat with them.'
[Applause].
Bell doubted the statement that the adj
ditional security 10 be given the Govern
ment under the bill for increasing the face
OF the mortgages was sufficient reason for
making the increase One of the items
was the land grant still unsold. The
lands were assessed at S. an acre. but they
had been offered for sale for years at that
figure or less without finding purchasers.
The security offered for the Central Pa
cific debt, that of the Southern Pacific