The record-union., 1897-06-26
To Take Steps to Settle the Govern
ment's Mortgage.
The President is Requested to Sus-
pend Proceedings to Carry Into
Effect the Agreement to Sell the
Interests of the United States Un-
til Further Action is Taken by
Congress.

WASHINGTON, June 25.-The SEN
ate Committee on Pacific Railroads to-
day agreed to report favorably the res
olution introduced by Senator Harris
of Kansas expressing the sense of the
Senate that the United States should
redeem the Union Pacific Railway from
prior liens and take steps to foreclose
the Government mortgage. The reso-
luton was amended by the addition of
a provision, at the instance of Senator
Morgan, requesting the President to
suspend proceedings to carry into ef-
feet the agreement alleged to have
been made to sell the interests of the
United States in the Union Pacific
Railroad and in the sinking fund until
further action of Congress is had in
reference thereto.
The action of the committee was
unanimous. Senator Harris was au-
thoriZed to make the report.
In presenting the resolution to the
Senate Harris will introduce a report
which, while it is not authorized as a
committee report, gives the Kansas
Senator's views and indicates the rea-
sons of the committee for the action
taken. This report states that it was
the intention of Congress that the Pa
cific Railroads should constitute a con-
tinuous national highway and thus
proceeds:
when the Executive Department of
the Government comedies to an agree
ment by which this fundamental object
of the law is absolutely and forever de-
feated, and the great lines so highly
priced are to be divided up among war
ring and conflicting interests, it is time
for an earnest and emphatic protest
on the part of Congress, and when,
further, it is found that the Executive
not only permits, but actually partic-
ipates and aids this destruction, as
shown by the correspondence as given
by the letters from the Attorney Gen
eral in response to the Senate reSolu-
tions of January 23d. and March 26,
1897, and hereto attached, and act
ually proposes to consent to surrender
of the sinking fund and the enormous
sacrifice of the pecuniary interests of
the Government, it would seem be-
yond the powers of the most able of
corporation agencies to satisfactorily
explain such action. This correspond
ence shows letters from various Gov
ernment Directors highly approving
this unlawful proceeding. If we are
to believe the current news of the day,
some of these Directors are largely in
terested in the proposed new organi
zation and history seems likely to re-
peat itself and the practices of the
Credit Mobilier and the construction
companies of the past to be once more
revived and put in operation.
eff the Government has knowledge of
this plan of reorganization it has not
been communicated to Congress and
the haste in the sale of the property
under the existing agreement with the
former Executive, which is evidently
a part of the plan, requires the active
intervention of Congress in demand
ing a full knowledge of the plan in
course of execution"
Figures are added to show that un-
der the proposed reorganization the
Government would lose S24, 4,7S4,396, and
it is also claimed that great losses
would be sustained by other creditors.