The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1897-01-15

Subcommittee of Five Appointed
to Draw Up a More
Suitable Bill.
1t Is Proposed TO Include an Adjust
ment of the Indebtedness of the
Sioux City and Pacific.

WASHINGTON, D. c., Jan. 1.-THE
House Committee on Pacific Railroads at
its meeting to-day demonstrated beyond
doubt that in their opinion the better
plan for settling the long-standing in
debtedness OF the Pacific railways to the
Government would be through a COM
mission having power to subpoena persons
and papers. This determination was the
result of a motion by Harrison of Ala
bama that a subcommittee of five should
be selected to formulate plan of settle
ment on the lines of the substitute offered
by him in the House several days ago
when the Powers bill was under consider
alton. The Harrison substitute provided
for a committee consisting of three mem
bers of the Cabinet, who should have
power to settle the Indebtedness of all the
bond-aided railways.
Harrison's motion caused a general dis
cussion, which showed that the memb ers
with practical unanimitY approved the
ommittee idea, the only difference of
opinion being as to the number of Cabinet
members who should constitute it. Some
of the members thought the commission
should consist of more than three Cabinet
officers, while others objected to the in
clusion of the Secretary of the Treasury
on the ground that his other duties took
up all of his attention 1t was agreed
that a subcommittee consisting of five
members should be appointed to draft
committee bill, and it was decided to in
clude in their work a plan for the adjust
ment OF the indebtedness OF the Sioux City
and Pacific Railway to the Government,
inasmuch as the bill now before the COM
mittee for this purpose leaves the settle
ment of this matter with the Secretary of
the Treasury. The subcommittee con-
sists of Powers of Vermont, Harrison of
Alabama, Hepburn of Iowa, Patterson of
Tennessee and Hubbard of Missouri.
They will hold several meetings during
the next few days, and the belief was ex-
pressed to-day that before the meeting of
the full committee on Wednesday next
they would have prepared bill which in
their judgment will not only meet the APP
proval of the committee, but of 8 major
ity of the House as well.
The bonds OF the Sioux City road ma
ture on January l, 1898. The amount of
the original Indebtedness is 81, 800 600,
which. with the accrued interest aggre-
gates 81 10000 The road now forms a
part of the Chicago and Northwestern
Railway, and Mr.. Brown of the firm of
Britain & Gray, of this city, who are the
counsel for that company, appeared be-
fore the committee to-day and briefly
stated the facts concerning the original
construction of the road and the issue of
first mortgage bonds at $4,000 a mile.
Mr.. Brown explained that the desire of
the company is to avoid a foreclosure next
year by authorizing the Secretary of the
Treasury to make a settlement of the
Governments debt, and upon payment
thereof to give full acquittance. The bill
does not waive or affect any of the Gov
ernment's legal rights or remedies should
the settlement proposed fail of accom-
p :shment.
Fred Chamberlain, who is associated
with John c. Coombs of Boston, the gen.
ersl counsel of the Credits Com mutation
Company, which has $1O0oO 900 invested
in railroad property in Sioux City, op.
posed the bill Mr.. Cham berlain thought
from a strategic standpoint that Con-
gress ought not to pass ibis bill until it
had some settlement of the main Pacific
Ioaus question. Inc company he repre-
sented found that their railway property
in Sioux City depended for its value upon
the facilities which were granted to Sioux
City by the Union Pacific road which were
very meager. For three sessions of Com
gress, he continued, this companv had
been sending representatives. to Congress
TO secure an amendment to the Pacific
funding bills which should give the Sioux
City road fair treatment and fair amount
OF traffic, provided they built road from
Sioux City $50 miles southwest to iunc-
ton of the Union Pacific main line at
North Platte. He frankly admitted that
the failure of the Pacific Railway Com
mittee to make such provision in their bill
had resulted in strong opposition from
the association of bankers, which had in
fact constituted the only well-organized
opposition to the bill.