The herald., 1898-02-16
q tho preamble, which lnoluaed prssa

dispatch.
Mr.. Harris replied that he might not
insist upon the preamble after he had
made statement. The Union Pacific
he said, for long time had attempted
to influence Congress and officials Of the
administration to scale down the debt
of that company to the government
about so per cent. Until year ago last
January the company had been unsuc-
cessful. At that time they made ar
rangements with Cleveland's adminis-
tration, by which the road was to be
disposed Of with loss to the govern
ment OF about $2s,000,000. Mr.. Harris
then outlined the reasons why that
agreement was not carried into effect
Public sentiment was aroused from
Maine to California. the demands OF the
people being that they should not be
swindled out of the enormous sum men,
toned.
when the present administration
came into power. the question was
grappled with and the government final
ly obtained every cent due the United
States, from the Union Pacific, on the
main line.
1--WE were all very glad" said Mr..
Harris, that the government received
it's Just due and nobody more sincerely
congratulated the administration upon
the successful negotiation of the trans
action than myself. 1t was also hoped
that the government would get the full
amount of the debt due from the Kan
sas branch. If the Reorganization
Committee should decline to pay the
full amount due-about $4,000, ,000-it
was the understanding that the govern
ment would redeem the first mortgage
bonds and have the road operated by a
receiver.
"a competent receiver would develop
the value of the property, which Mr..
Harris believed was quite $30.000,000. The
Reorganization Committee, Mr.. Harris
said, had evidently succeeded in secur-
ing from the Attorney-G General such
concessions as have been outlined in the
Associated Press dispatches and the
government was going to stand idly by
and see the enormous sum Of $4,000, 900
interest due sacrificed.
'It Is particularly significant" said
Mr.. Harris, "that the statements Of the
Reorganization Committee and the off,
cials of the Union Pacific regarding the
value of the main line have been proved
by subsequent events to be untrue"
"As VAS said once by the senator from
Missouri (vest). When they speak they
lie. and when they are silent they steal.'' y
Harris then discussed the value of The
Kansas Pacific road. and said that, hav-
ing been a civil engineer on the line, his
Information was that of an expert. He
said that during the last eleven years
the line had earned an amount equal to
per cent on $S0,OO0,O00 He further said
that on the 5th inst. the attorney general
had agreed to redeem the first mort
gage bonds and to have the road oper-
ated by a receiver. This arrangement
Harris said, was perfectly satisfactory
to those for whom he spoke, but the in
tention Of the attorney general to aban-
don that plan and to let the road go with
q loss to the government of nearly 81 ,000,-
600 was not only surprise to him and
others. but absolutely unsatisfactory.
Harris maintained that the Kansas
Pacific road was worth the last cent of
the governments claim. and that it
ought to be demanded by the attorney
general.
Senator Morgan, referring to the effort
to pass bill in the senate givingp pow
ers to the administration to become a
bidder for the Kansas Pacific road, said
he thought that the senate ought to
take that measure up and pass 1t.
Whether 1t would pass the congestion
which sometimes takes place in the 9TH
er branch of congress" he could not say.
1t would be possible, however thus to
demonstrate whether there was power
in the house of representatives which
would stand in the way of the proposed
the country nearly $7,00O,000. Political
parties will sometimes permit robberies.
They will swallow the consequences of
those robberies without strain; but the
people will not allow themselves to be
"juggled with, whatever political parties
may do" concluded Morgan.
Senator Gear objected not only to the
preamble of the resolution, but also to
its wording, as discourteous to the at
torney general. Referring to the petit
tion. of a London banking firm, read as a
part Of Harris remarks, which con-
tanned evidence that there was trouble
between the reorganization committee
and those whom that committee repre-
sented, he said that when rogues fall out
honest men were likely to get their
dues.
"That is consummation devoutly to
be wished" exclaimed Senator Harris.
when these thieves fall out perhaps
the United States will get it's dues"
Senator Gear, continuing, regarded as
the greatest plume in the cap of the
present administration the fact that it
received 100 cents on every dollar Of the
Union Pacific Indebtedness.
"Then why is it willing to accept 4S
cents on the dollar for the Kansas Pa
cific indebtedness?" inquired Morgan.
Il don't know that 1t isl replied Gear;
"but If It is, perhaps it is because the
road is worth only 4S cents ON the dollar"
Foraker Of Ohio discussed the situation
as it had been viewed by the president
The president had asked congress to
give him authority to enter the sale of
the Kansas Pacific as bidder, but con-
gress had taken no action. The final Of
fer made by the reorganization commit
tee the president had evidently regarded
as reasonably satisfactory. Senators
might differ from the president as to
the value Of the property, but he had
consulted many well-informed persons
and felt that in receiving the full amount
of the Kansas Pacific debt, less the in
terest, he was doing very well.
Gear moved that the resolution be re-
ferred to the committee on Pacific rail-
roads Pending the vote on this resolu-
tion, Turpie declared that an effort was
being made by the reorga MIA tior oo,,.