The times., 1898-02-16
Ii viii Take Place Today, Says
Mr.. GrigsS.
HIS REPLY TO THE SENATE
It Appears Soon After the Harris
Resolution, Which the Author
EloquentIy Champions, PASSES =
He Maintains the Government Re-
taius All Its Rights.

day, the Senate agreed to the Harri:
resolution directing the Attorney Gen.
eral TO inform the body if he had au-
thcrized The abandonment of his ex-
pressed intention to redeem the firsl
mortgage bonds of the Kansas Pacific
read, and 10 ask a postponement Of IL,
sale, and if he had authorized an agree
ment in connection with the sale of the
property, resulting in a total loss to the
Government of all the accrued inter
est.
The first vote was taken on motion
TO commit the resolution to the Com
mittee on Pacific Railroads. and this
was defeated by the overwhelming vote
of 81 to 19.
The resolution, after the preamble
was rejected Was then agreed 10.
Attorney Griggs had evidently receiv-
ed an intimation that the resolution
would pass, Cor he had the response
ready and sent il TO the Senate last
evening before the body adjourned. In
a. Very VolUmiHUUs communication the
Attorney GENERAL gives the status OF
the case.
In beginning the discussion Senator
Harris said that the climax came in
y
indignation reached such a high pitcn
at the efforts to pass fund
ing bill that that measure was de-
feated and the Government was in a
fair way to obtain it's Just dues. Lately,
however. pressure had been brought to
bear on the part of the reorga nization
committee, which has brought about a
reversal by the Attorney General
from the position he had assumed, as
80. I
that an agreement has been reached
between The attorneys of the Govern
ment and the representatives Of the re-
organization committee, by which the
latter is to obtain this road for
5000 GOO.
This. if carried out, will sacrifice an
amount of interest due the Government
amounting to more than S6, ,00O,0 600.
Mr.. Harris said that there was a
great deal of misunderstanding. even
among Senators as to what this
sc. GOO. 600 of interest represented. He
said that it really should not be con-
sidered as interest: that ii represented
money advanced by this Government
TO nav the interest on the Governm ants
own bonds which had been advanced
TO this road as security for its loans,
and on which they failed TO pay the
interest.
aent of Justice that the maximum
value of this 394 miles Of road is only
equal to the amount Of the Government
debt said the speaker. Therefore
we must sacrifice this $6,000,000 of in
terest'
Mr. Harris said that il seemed to him
that the Government ought to include
this amount. called interest, in the prin-
cipal Of its claim
= = f-a1t Of u af-
property was then considered by Mr.
Harris. who was employed in the con-
struction OF this road as q civil en-
gineer and knows every foot of ii.
Every assertion which the reor-
Ranization committee has made before
Congress in reference 10 the value of
these lines has proved to be absolute
ly false and unreliable" continued the
speaker. Il am strillingly reminded
OF a statement made by my colleague
from Indiana (Senator Fairbanks), whq
said in reference to other persons,
When they speak they lie. and when
they are silent tEey Steal as char
=cterizing exactly the attitude and
procedure Of this reorganization COM
mittee. BY their own action in bid
ding UP the amount in full on the
Union Pacific they showed that they
themselves did not believe what they
said. In speaking Of this Kansas
Pacific they they said that it was a
line that began nowhere and ended no.
where. but 1t cannot be denied for a
moment that this road begins in tha
heart of Kansas City. AS to the west
ern terminus. ii was proVidid in the
act of Congress Of July, 1862, and ii is
clear that Congress intended to create
Pacific Road system clear to San
Francisco. II was provided that the
main line should be operated as one
continuous line. and the door should be
left open for any new branch, and that
no one company should have the alb
solute privilege. Since the first legis-
lation no change has been made, so
that the subsidy was. in point of fact,
made over the whole line. The Kan
sas Pacific has the absolute right 10
carry its passengers and freight over
the whole line TO San Francisco, and
il is absolutely idle chaff 10 talk abou.
its ending anywhere on the plains. il
is an absolute piece of property. SO far
as it's terminals and rights are con-
cerned.''
Mr.. Harris then showed that Accord
ing to the reports of the company Veri-
fled by the reports Of the United States
Railroad Commissioner. show that the
earnings of this road for the eleven
years from 1885 10 1885, inclusive. aver
aged Sl.255.S35 a year. This amount
would pay per cent on SS0000,c90.
In speaking Of the suggestion made
by the reorganization company to par
allel this road. he said that it was an
absolute impossibility, and would not
be considered for a moment by prac-
tical railroad men; that ii was only
talked of for effect.
THE conditions and situation OF
this property renders il more valuable
to the Union Pacific than to any one
else" said he. and it is worth $780,
100000 to anybody. and l trust we may
succeed in preventing any such con-
summation of this transaction as is
intended"
Mr.. Gear here interjected some uues-
hons as TO the cost of building the
road. and the possibility of iivertjne its
business. to which Mr. Harris replied
that neither proposition was worthy of /
consideration.
Mr.. Harris said that he did not sneak
OF this matter as q party measure but
felt an interest as a citizen and a
Senator, sworn to do his duty. IF the
Fifty third Congress had said we viii
insist upon strict compliance with
the law there never would have been
any of this useless discussion"
Mr.. Morgan made a few remarks on
the resolution. He referred to the fact
that there was a bill now on the cal
endar of the Senate which gave the
Government power to buy in this road. |
aud said that he hoped that ii would |
pass.
IF the Senate has it in mind and |
heart TO do its duty to the United |
States. it will take up this bin this |
morning and send it TO the House Of |
Representatives, and then we will see /
IL there is any person in the House who /
VIII prevent the passage of a measure l