The herald., 1897-04-09
FORECLOSURE NOT FAVORED
AS IT rs CERTAIN TO RESULT IN
LOSS
Oakland Producers Provide for Car
riage by Water-Huntington
Is Reelected President
Associated Press Special Wire.


bill to authorize a committee consisting
of the secretaries of the treasury and in
terror and the attorney-general to ad-
just the debts of the Pacific railroads to
the government. The report reviews in
detail the financial conditions of the
road and their relations to the govern
ment, and expresses approval Of the
plan to permit the executive officers of
the government with the approval OF
the president, to make an adjustment
with the owners Of the property.
Upon the foreclosure Of the first mort
cages, the report holds the government
would have no rights except for the
transportation of troops mails and sup
plies guaranteed by the original sub
sidy acts. If no other considerations ex-
cept the guarantee of equal facilities to
all connecting roads were concerned, the
committee holds that this would justify
a settlement by a commission as these
privileges could be acquired as result
of foreclosure of the paramount first
mortgages.
The committee considers that any ac-
QUESTION of the roads by the govern
ment would be disadvantageous ard
that a foreclosure of the government;
lien can be expected to result only in the
loss of a large part of the debts of the
government. The appointment of COM
mission would save the governme at
from being forced to reluctantly COM
mence foreclosure proceedings for want
of authority to make a more advan
tageous settlement The bill, it is ex-
planned, deals only with the subsidy
bonds on the Central Pacific to point
five miles west of Ogden, distance oe
737h miles, and the Western Pacific
from San Jose to Sacramento, 1923 miles,
all claims upon the Union and Kansas
Pacific being now before the courts for
settlement. The first mortgage bonds
on the Central Pacific are $25,8S3, 900:
Western Pacific s9700O0 subsidy bonds,
Central Pacific $25,SS5, ,120. Western Pa
cific $1,970, $50.
The companies are said to have fully
complied with the terms of the acts of
1862 and 1864 and the Thurman act, but
while their earnings have enabled them
to meet operating expenses and interest
on the first mortgage bonds, they have
been unable to provide for the debt to
the government. The roads themselves
are held to be inadequate security for
the liens upon them, which amount to
$780, mile.
WILL HANDLE PRODUCE.
OAKLAND, April S.-The details of
the project to form a company that will
ship produce to Oakland from points
along the bay and the rivers of Califor-
mia were concluded today. The COM
pany that will handle the produce has
yet to be formed, but the first steamer
has been purchased.
The company will be composed of local
produce merchants. They have begun
operations by the purchase of the steam
er Harding. 250-ton stern-wheel boat,
that was built on Puget sound. The
steamer draws but two feet of water.
She was secured by the local combina
tion for $4,000, though she cost nearly
double that amount. AS soon as the
Harding arrives she will run up and
down the Sacramento river, gathering
produce and bringing it directly to Oak
land. The landing place will be at the
Adams -Prather wharf at the foot of
Jackson street. The Adams estate has
agreed to invest $40, 900 in the erection of
a large market building. One portion of
this building will be used by retailers,
where the people of Oakland may pur-
chase their fruit and produce. The other
portion VIII be occupied by wholesale
stores and shipping offices.
SOUTHERN PACIFIC ELECTION.
SAN FRANCISCO, April S.-The di-
rectors of the Southern Pacific railroad
today reelected the officers Of the com
pany by unanimous vote, as follows:
President, C. p. Huntington; first vice.
president, c. F. Crocker; second vice.
president Thomas II. Hubbard; third
e-presdent, ]. c.. Stubbs; assistant to
the president, Henry e. Huntington.
acting president and assistant Sec
retary, I. E. Gates of New York; second
assistant to the president and controller,
William Mahl of New York; secretary
and assistant controller, e. c. Wright;
assistant secretary, c. F. Krebs Of New
York; chief engineer, William Hood;
treasurer, N. T. Smith; assistant treas
urer, F. H. Davis.
A GOVERNMENT DIRECTOR
WASHINGTON. April s.-The presi-
dent has appointed John T. Bressler of
Nebraska government director Of the
Union Pacific railroad. He succeeds r.
r. Nelson, whose term has expired.
NO ACTION TAKEN
NEW YORK. April s.-A meeting of
railroad presidents was held at the head
ton here today The meeting adjourned
quarters of the Joint Traffic associa-
shortly before o'clock when Mr.. Blan-
chard gave out the following statement:
1.-THE meeting today was conference
of presidents Of the trunk lines with the
presidents of eastbound railways from
Chicago and the board of managers, to
consider the eastbound lake and rail
rates as compared with all rail rates
from Lake Michigan and Lake Superior
ports. Other questions were only consid-
cred incidentally and no action was taken
beyond recommendation of the gentle
men present that a meeting of the board
! Of control be held in New York on Tues
/ day next. the 18th inst. to consider all
subjects which might then be called up
| III connection with rates, the right Of the
association under the decision Of the
! supreme court, ETC."
| THE SIERRA ROAD
| oAKDALE Cal, April s.--Large guam
titles Of material. such az bridge tim
/ berg. ties and rails are arriving daily
/ for the Sierra railway, running from
| oakdale to Sonora. twenty-nine car
| 1oade arriving this mornings Work q