The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1898-02-17
SENATE PASSES The X,
P. RESOLUTION.
BUT THE SALE WILL co ON
Attorney General briggs Repiies-ssys
the Government Has Not Promised
to Make iiid and That the
Property wnl lie sold for
o.8o3.OOO-Remarks OF
senator Harris.

wAsurNeToN. Feb. 1G.-A resolution
OF inquiry offered by Mr. Harris OF
Kansas precipitatcd a spirited discus
sion uf the Pacific railroad question in
the senate yesterday The resolution
called upon ihe attorney general for
the reasons which induced him TO
abandon his plan Of redeeming the
first mortgage bonds Of the Kansas
Pacific branch of the Union Pacific and
having the road operated by a receiv-
er Mr. Harris denounced the present
plan TO sell the road at the bid OF the
reorganization committee as defraud-
ing the government out OF something
more than $1,000, 900 Mr.. Foraker of
Ohio explained the view taken Of the
matter by the administration, show
ing the president was convinced the
reorganization committee proposed
to pay for the road all that it was
worth The resolution was finally
passed, in amended form.
II was also hoped, Mr. Harris said,
that the government would get the
full value Of the debt due from the
Kansas Pacific branch. In case the
reorganization committee should de-
cline to pay the full amount due
about 3,UD0 OO0--it was the under
standing that the government would
ledeem the first mortgage bonds and
have the road operated by a receiver
a compe tent receiver would show
the value OF the property, which Mr.,
Harris believed was quite $50, OOO, 600
The reorganizatioI committee, Mr..
Harris said, had evidently succeeded
ia obtaining from the attorney gem
oral such concessions as had been out
lined IN the press dispatches and the
government is 10 stand IDLY by and see
the enormous sum OF So, 100, 600 Of in
terest sacrificed The value OF the
property, Mr. Harris thought, was a
most important consideration. BY the
reorganization committee and by the
Union Pacific officials an effort had
been made to minimize the value Of
the road. ut is particularly signifi-
cant, said Mr. Harris, that the
statements OF the reorganization com
mittee and the officials of the Union
Pacific regarding the value of the main
line have been proved by subsequent
events 10 be nn true
LAS was said once by the senator
from Missouri (Vest), when they speak
they lie; and when .hey are silent they
steal
Mr. Harris then discussed the value
OF the Kansas Pacific road, and said
that, having been a civil engineer on
the line. his information was that Of
aIpexpert lie said that during the
last eleven years the line had earned
an amount equal to per cent on $50,
900, O00 He further said that on the
5th inst the attorney general had
agreed 10 redeem the first mortgage
bonds and TO have the road operated
by receiver This arrangement, Mr.
Harris said, was perfectly satisfactory
TO those for whom he spoke, but the
intention of the attorney general to
abandon that plan and TO let the road
20 with loss 10 the government OF
nearly 81, 900, 00c was not only sur
prise TO him aud others, but abso-
lutoly unsatisfactory.
Mr.. Harris maintained that the
Kansas Pacific road was worth the
last cent of the governments claim.
and it ought to be demanded by the
attorney general
Attorney General Griggs replied to
the resolution as follows:
answering specifically the ques
tions contained in the resolution of
the senate, / would say that / have
not authorized any agreement by
which the property Is to be sold for
the face value Of subsidy bonds, nor
has the government agreed not
10 be bidder at the sale
The only agreement made was
10 discontinue the motion for post.
ponement redemption and the ap
pointment of a receiver, upon the
guarantee that the minimum bid by
the reorganization committee should
be the principal of the government
debt, The property will be sold o
public sale In open competition 10 sucl
party ~ may offer the highest hi
subject only TO the stipulation ol
tanned in open court on Saturday la-
that the minimum bid will be So g.
900, instead of 81, 5o0.O1O, as former.
fixed by the court