The San Francisco call., 1898-01-07
DISCUSSION
 ON PACIFIC
 RAILROADS Views of Mcguire Prevail in the
 Committee. President Should Bid the Full Value on the
 Kansas Pacific. Temporary Government Own ership of the Road Would
 Do No Harm. LINE OF ACTION AHEAD. | Hepburn Will Press the Bill Provid- ing for g Cabinet Commission to Settle Debts.
Temporary Government Own ership of the Road Would
 Do No Harm.
LINE OF ACTION AHEAD.
Hepburn wnl Press the Bill Provid- ina for 8 Cabinet Commission
 to Settle Debts.
Special Dispatch to The Call.
Call Office, Riggs House,

Washington, Jan. 6.
 The House Committee on Pacific Railroads held it's first regular meet ing this morning. All bills before the committee were called up in order for their consideration. Maguire's bill giv- ing the Supreme Court of the District of Columbia exclusive jurisdiction of the foreclosure proceedings was passed for week. Hepburn's bill for the set clement of the Sioux City and Pacific railroad debt was referred to a sub committee, consisting of Hepburn, Shattuc and Mcguire. Hepburn sug- gested that in former hearings the present value of this debt was esti- mated at about 1,500. 900.
 Mcguire said in view of serious error in the estimates concerning the value of the Union Pacific main line at the former hearings it would be well to re- investigate and revise the estimates on the Sioux City road. This was agreed to.
 Powers said he thought this course proper, because the new members of the committee had not had the advan- tage of being present at former hear ings.
 The Fleming bill, authorizing the President to bid at his discretion on the Kansas Pacific and other Pacific railroads, was next taken up. Mcguire objected to the provision giving dis cretion to the President as to the amoupnt to be bid on behalf of the Government, and insisted that the President be required by the act to bid an amount sufficient to pay the entire amount to be bid on behalf of the above the first mortgage.
 Shattuc said that the road was not
 worth more than $13,000, 900 and that the Government ought not under any circumstances to pay more than that for the road. He was utterly opposed to Maguire's plan, because a provision requiring the Government to bear the whole amount, which would be about SIS, 900, would probably cause the | road to fall into the hands of the Gov | ernment and establish a pernicious ex- | pertinent in government ownership, to | which he Is opposed.
 Mcguire said he did not view the 1 possibility of government ownership | with any alarm and that as the gov ernment, in the case of the Kansas
 Pacific, was bound to lose all of it's
 claim except the portion paid out of | the proceeds of the foreclosure sale it | would not cost the government a cent l more to buy the road at $19, ,000, 900 than | 1t would at S13, 3,000, 900. So the Presi- dent might as well be required to bid | the whole amount, and in the absence
 of higher bid to reduce the road to i government ownership and possession i The road could then, under appropri- ate legislation eff thought advisable by i CongreSs), be offered for sale free from l the junior membranes and other complications now effecting it. l Fleming said he considered Maguire's objection well taken and would vote for his amendment to the bill, and that he had introduced the bill as an urgent measure desired and, in fact, prepared by the Attorney-General, to put the government in a position 10 bid at the approaching Kansas Pacific sale, but that he was satisfied the bill should be amended in the manner proposed by Mcguire.
 The bill was then referred to a sub- committee of three to report at next meeting. Other bills of minor import ance were passed until next week, and the Hepburn bill, providing for a com mission of Cabinet officers to adjust 1 and settle the Pacific railroad debts, was taken up.
 Mcguire inquired if it was the pur- pose of Hepburn to press it's considera- ton. He stated that such was his pur- pose and that as the bill involved a consideration of the whole Pacific rail- road problem, it might as we'll be con- sidered by the entire committee in the l first instance, instead of being referred to a subcommittee. After some dis cussion this was agreed to, but no time
 was fixed for the consideration of the l bill.
 The statement of Hepburn that he l intends to press the consideration of | this bill is generally accepted as indi- ] he f1af I,4 Do
 road fight will take in the present Con l greSS