The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-01-15
PACIFIC ROADS MAY BE SOLD
STEPS TAKEN BY THE PRESIDENT
IN FORECLOSURE PROCEEDINGS.
Special Counsel HoadIy Directed to
Participate i'm Pending Suits
New Bill Proposed.
special to the indianapolis Journal.

racine Railroad matters, mas been direct
ed by the President to get ready to make
the government a party to the pending
foreclosure suits in Nebraska and Colo
rado by filing cross bills. and this move
will probably be taken before the end OF
the current month. With the United
States a party to foreclosure proceedings
a clear title 10 the property will pass to
the purchasers. The Union Pacific reor-
ganization committee has submitted a
proposition to President Cleveland to pay
an upset price of about $31, 900 600 for the
property under government foreclosure.
and the plan is being considered very IA
vorably by the executive, as may be
judged from his instructions TO ex-Govern-
or Hoadly. j. Pierpont Morgan & Co.
are the moving spirits of the reorganiza-
ton committee, and in addition represent
themselves and the Va1derbilts. The
Union Pacific net debt TO the government
now approxmates $53,OO0,00O, and if the
proposed deal is carried out the people will
be out only about go, 900 on that end
of its Pacific Railroad investment. Those
familiar with the situation agree that the
government will be lucky to fare so we'll,
but the President s critics will point TO the
transaction as "Cleveland's last gift of
so 000 10 the j. Pierpont Morgan syn
dicate," the eliminating and crowning act
of the great ACKNOWLEDGEMENT eonspira-
cy." They will say that he is showing in
decent haste in committing the govern
ment to a programme involving a certain
ty of tremendous loss.
c. p. Huntington is not i'm on the deal
referred to. He is still fighting desperate
ly for another sort of settlement, and his
friends in Congress are now out for a COM
mission TO fix on an equitable adjustment
of his end of the indebtedness. The House
committee on Pacific Railroads will report
such a bill at its meeting next Wednes-
day, unless the programme is changed be-
fore. Any plan he advances is likely to
be turned down. however, and the pros
poets are he will have TO come out
into the open and make terms like the
Union Pacific people. To make matters
worse for him, he is likely TO be deposed
from the presidency of the Central Pacif-
ic at the approaching election and the con-
troll of that great property taken from
him. General Hubbard, representing the
Stanford and other interests, is slated to
succeed him. Trouble is crowding in on
the aged ''magnate."
MR.. HARRISON'S BILL.
An Associated Press dispatch says: 1.-The
course taken by the House committee on
Pacific Railroads to-day makes it probable
that the railroad question will be brought
before Congress again this session in the
form of a proposition to adopt the plan of
Representative Han rison, of Alabama, for
the government to make a settlement with
the roads. With but one dissenting voice
| the committee decided to empower a sub
| committe TO consider Mr.. Harrisons plan,
| which is embodied in BILL and it is pre-
dlcted by most OF the committeeman that
the bill will be reported to the House. 1t
was decided to give a hearing to the ques-
| ton next Wednesday. The members of
| the subcommittee are Powers Hepburn
personnel every shade of opinion on the
| railroad question is represented. The COM
| mittee was impelled TO its action by the
| strong feeling entertained by most of its
! members against the foreclosure by the
government. with the probability of gov
| consider nearly inevitable if the govern
| ment forecloses. 1t was conceded that the
| funding plan in any form, was dead.
| about the views of the railroad companies;
| on the commission plan. but il is assumed
| that they VIII prefer an opportunity TO
| continue negotiations with the government
to foreclose
The Harrison BILL which embodies the
/ suggestions made to Congress by EXPIRES
| ident Harrison. names the secretaries Of
| the treasury and the interior and the at
| torney general TO constitute the commits
1
| should be commission of those not gov
| ernment officials, appointed by the Presi-
dent, II being argued that the Cabinet Off
| GERS would not have time to engage in the
| negotiations. Another suggestion was that
| the secretary of the interior and the attor-
| ney general viii three other persons one
| selected by the President and one by each
| OF, the two Cabinet officers, constitute the
| commission.
| The railroad question was opened before
the committee by another attempt by rep
| resentatives of the Sioux City and Pacific
| company TO secure an independent settle
| ment with the government. Attorneys fol
! the Chicago & Northwestern appeared by
| their representative. Mr.. Brown to urge
| the adoption of a bill introduced by Mr.
| Hepburn. OF Iowa, authorizing the secre-
| tary of the treasury to make "A settlement
| of the roads indebtedness to the govern
ment. There are sl60O.0O0 of subsidy bonds
| maturing on Jan. l. 1893, and the govern.
| ment has paid interest on these which
1 brings the roads Indebtedness up TO about
| 81 100000. A majority of the Sioux City 4
| Pacific stock is held by the Chicago &
! Northwestern. which holds a lease of the
| road. so that any settlement practically
1 would be made with the latter corporation
| Counsel for the Curtis Communication Com
| pany. Of Sioux City. which includes 34C
| banks in twenty-five States. holding the
| securities, spoke against the bill. The Sioux
| City interests have opposed the funding bill
! and are antagOnistic to any separate set
| tlement with any of the Pacific Railroad
| companies. They desire arrangement by
| which the Union Pacific will be prevented
| from discriminating against them i'm traffic
4 ARRANGEMENTS. Inc SIOUX CITY question
| was. with the Harrison plan, intrusted tC
| the subcommittee.
| Mr. Harrison said to-day that his bill
| probably will be amended 10 give the gov
| ernment commission authority to foreclose
| on the roads i'm case IL fails to make 2
| settlement with them. This change. was
| suggested recently by ex-Secretary Hokt
| Smith. who took active interest i'm the
| Pacific Railroad question when i'm Office
| one point provided for by Mr.. Harrison
| bill on which he is insistent. is that al
/ testimony taken bv the commission shal
| be given under oath. The witnesses befor,
| the committee when the funding bill wa.
| being prepared were not sworn and Mr.
| Harrison says that no weight should b,
/ given to unsworlt eX parte testimony il
| dealing with question involving so mucl
| money.
Senator Gear. chairman of the committe.
| on Pacific railroads. viii call meeting O
| that committee tomorrow TO cons. Ter thu
| bill introduced by him yesterday for tn,
| appointment OF commission 10 conduc
| the settlement of the Indebtedness of th'
| bond-aided roads. When asked to-day wha
| action he thought the Senate would tak
| on the new proposition. Senator Gear sale
| that he thought IL likely that IL would b
| disposed TO delay any action until IL shoul'
| be known what the House would do. I'm
| he could not say until the committee shoul,
| meet what course would be advised. Th
ss,ator said he had introduced his bill aft