The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-01-14
THE PACIFIC RAILROADS.
What the Reorganization Committee
ExpectS to A~ccomnlixh.

WASHINGTON, Dec. 13.-Although no
one in authority here who is cognizant of
the facts is willing TO discuss the question
of what action the government Is likely
to take with respect to the Pacific rail-
roads settlement. it is believed that a prof.
ect is on foot among the members of the
reorganization committee in New York,
looking to a guarantee to the government
or a stated amount of its claim against
the roads, provided the government will
join in its pending suit. The belief in this
theory is strengthened by a paragraph in
the last annual report of the attorney gen.
eral, in which he says: Il think that un-
less the pending bill be. passed and &C
cepted, the government should endeavor 10
secure terms for its appearance In court in
the way of an assurance of such a bid on
the property in case of judicial sale as Will
secure TO II a fair valuation on Its lien.
1t has been known ever since the suits
of the first lienholders were begun that
they have made every effort to secure the
appearance of the government. In no other
way could they be IN a position to give a
complete and u~nclouded title 10 the pur-
chaser at the foreclosure sale. So far, 1t Is
believed. the government has steadily de-
clined to appear in these suits. but 1t Is
understood that the question OF attempt
ing TO enforce the governments appearance
has been under consideration by the nrst
lienhoiders. Their contention has been that
while the government cannot be sued with
a view to recovery against 1t, II may
properly be made a party TO a suit In
equity brought by the holders OF bonds IS
sued by its express consent upon property
upon which it has Itself reserved a lien.
This contention has been combated by the
government, which has maintained that It's
appearance cannot be compelled. Now that
the funding bill has failed. 1t is not be-
lieved the government will longer refuse
to appear in the cases. provided a proper
guarantee is made that at the foreclosure
sale it shall receive a fair offer for its
claim.
Senator Gear, of the unit on Pa
cific railroads, has introduced a new Dill
for the settlement of the indebtedness, con-
stituting the secretary of the treasury, the
secretary of the interior and the attorney
general a commission with full power TO
make a settlement of the indebtedness of
all the ~bond-aided Pacific roads to the
government, on such terms and in SUCH
manner as may be agreed on by them or
a majority of them and providing that any
settlement shall be approved by the presi-
dent and unless approved by him snail not
be binding. The commission is
to administer oathS, summon witnesses,
etc. and II is REQUIRED TO report the action
ts ken within sixty days after the assem-
bling of the next regular session OF Con-
gress. The Pacific roads are required 10
accept the following as a part of any set
Element agreed upon:
THAT each of the companies accepting
the provisions of the act shall keep It's
railroad and telegraph line in repair ana
use and shall at all times transmit dis-
patches over said telegraph lire and trans
" laii AAOOP9 oA0
supplies and public stores upon said rail-
road for the government whenever required
to do so by any department. thereof, and
that the government shall at all times
have the preference in the use of the same
for all the purposes aforesaid at fair and
reasonable rates of compensation, not to
exceed the amounts paid by private parties
for the same kind of service; and that said
companies and their successors shall CO.
operate in making track connections with
all railroads of other companies to points
of junction with their roads: and at any
point where two or more roads shall con-
meet with their road they shall afford to all
such equal terms. rates, and facilities for
the interchange of traffic both passenger
and freight: and any contract or arrange
ment by sale. lease, consolidation, through
car service or otherwise intended for or re-
sulting in any preference or advantage
whatsoever to any such connecting rail-
road to any prejudice or disadvantage
whatsoever is hereby declared to be UNI
lawful"
Twenty thousand dollars is appropriated
for carrying out the provisions of the bill.