The San Francisco Call. Newspaper, January 23, 1897, Page 1

VOLUME LXXXI.—NO. 54. SATURDAY MORNING, JANUARY 23, 1897. PRICE FIVE CENTS. DRECLOSUR COMMENC First Decisive Step to Cash Railroad Liens Taken at Last. AGREEMENT WITH THE UNION PACIFIC. Attorney-General Harmon Nege- tiates With the Reorganiza- tion Committee. GUARANTEE OF PRINCIPAL AND SOME INTEREST. Soen the Department of Justice Will Decide as to the Central Pacific Debt. ST. LOUIS, Mo., Jan. 22.—The first decisive step to secure foreclosure of the lien of the United States Govern- ment upon the Union Pacific Railway United Sanborn was taken here this evening. District Judge called upon at the Scuthern Hotel at 9 o’clock to-night by Attorney John C. Cowen of Umaha. He asked the Judge to direct that foreclosure proceedings be begun at once. All the legal bear- ings of the case were discussed by the States was two jurists and finally the Judge issued the order. Mr. Cowen had barely suf- ficient time to catch a train for Omaha, where he will institute foreclosure pro- ceedings to-morrow - TEKMS TPON. AGAEED Harmon Begins Foreclosure Proceedings igoinst the Union Pacific. WASHINGTON, D. C, Jan. 22.—The following statement given to the United Associated Presses by Attorney- General Harmon this afternoon: Upon the defeat of the funding bill in the House the President directed the At- toiney-General to commence foreciosure proceedings against the Union Pacific Railway Company, first making the best arrengements obteinable for the protec- tion of the Government’s interests. Fol- owing the lines indicated in his last re- port the Attorney-General beean negotia- tions with the reorganization committee. On Thursiay an agreement was reached which will resnlt in immediate steps to P2 The chief step of the negotia- tions was the protection of the Govern- the risk of sacrifice of its a price which would z substantial after paying was eclose. ment against claim by a ssle at leave not protection is now assured by a ee that the Government shall re- on aided portions of the and Kansas Pacific lines, the sinking fund, not less than ). Tue sale will be public, so ment wili receive the ¥ higher bids up to the full gu ceive on e Gov amo < claim, principal ana inter- ést. ¢ four and a half million | dollars wrs on Tuesday deposited with ed States Trust Company of New Y General Louis Fitzgerald, the committee, as security g to the terms of the agreement. ttee agrees to bid par for the is = i if it desired to sell itat reclos e. bave been ttorney-General and Hon. the f prepared, | | George Hondley, special counsel, and for- warded to St. Louis, where they will on | Friday be presented to Judge Sanborn, | who has jurisdiction in all the districts | and whose consent to their filing is neces- sary because the receivers in charge of the | property are made parties defendant. They are original bills and not cross bills | in the pending suits. Whether they will | proceed as independent bills or be oraered | to stand as cross bills in the pending suits | will be determined by the Judge, but in either event the result will be practicaliy the same, v.z.: The sale of the property | under the Government’s lien as well as under that of the first mortgage. The bills will be filed in the districts of Iows, Nebraska, Wyoming, Colorado and Utah. Separate bills for the foreclosure of the | lien on the Kansas Pacific are in course of | preparation. These will be filed in Mis- souri and Kangas. “The proposed arrangement was submit- ted to the Government directors before it | was closed. They all recommended its | adoption. Their general opinion was | thus expressed: ‘The Government can- | not prudently longer aefer the settlement of this matter. The Union Pacific system has already been much curtailed and its revenues have been permanently reduced. | Reorganizations of allied and neighbor- | ing properties have either been accom- | plished or are in train for early consum- | mation, for the breaking up of the entire | Union Pacific system has been and is | steadily progressing. It therefore seems | to us inexpedient if not dangerous to | | neglect this opportunity of realizing the | sum offered and thus expose the Govern- ment to a continuous depreciation of its security.’ “Itis believed tnat there will be higher bids, but if not, an estimate shows that, crediting amounts already received from the company, the Government will at least | realize a sum equivalent to the princtpal | | of the subsidy bonds with interest "at | about 314 per cent from their issue to the | average date of their maturity, or about | 3.45 per cent from date of issue to January 1, 1897. The minimum of $45,754.000 guar- | | anteed the Governmient is cash, so that | }nn relations with the property will ter- minate upon the confirmation of the fore- | closure sale. | “The course to be pursued with respect | to the Central Pacific has not yet been | determiaea.” i Attorney-General Harmon upon his re- | turn from New York, fresh from his nego- | tiations with the reorganization committee ;ol the Union Pacific Reilway Company, prior to the reguiar Cabinet meetiug to- day, explained to President Cleveland the | plan outlined 1n the statement given, | swhich received the. President’s approval. | The Cabinet was told at its session what had been done, but no formal action by that body was taken. As ingicated by the statement, the set- | tlement agreed on with the reorganization committee marks the ending of the rela- tions between the Federal Government | and the Union Pacific Company. It does not interfere, bowever, with the right of the Government to institute proceedings to protect itself in any phases of the liti- gation_that may be discovered later. So | far as the Central Pacific road is con- cerned matters are not in shape for settling | its ‘relations with the Government, but something is likely to be done in the near future. | The reorganization committee of the | Union Pecific Railroad Comdany consists | of Louis Fitzgerald (chairman), Jacob H. | | Schiff, T. Jefferson Coolidge Jr., Chauncey | | M. Depew, Marvin Hughitt and Oliver | Ames. The Central Pacific Company having paid its interest on both tl.e first and sec- ond bonds, it 1s believed that there can be no default of that company for at least a year hence, or until January 1, 1898. The | Depsartment of Justice bas the matter un- | der advisement, however, and will decide in a few days what course to pursue in the | matter of the Central Pacific. The Senate Committee on Pacific Railroads in its fa- vorable report of Senator Gear's bill fora | | | | | | surance of such a bid on the property in | committee of the Union Pacific Railway The French Collier Madeliene That Came In From Callao, Her Hold Rent by the Force of the Explosion of One of Her Oil Tanks and Her Decks Dyed With the Blood of Her Second Officer. Pacific Railroad Commission, made to- day, said: “We have provided in this bill that said | commission in making any settlement | under this act shall reserve to Congress | the right to regulate or prescribe the rates | of tolls or charges for transportation of | freights or passengers on any or all of said | roads and all other rights and powers in respect to seid rosds and railroad compa- nies as they exist.” ] | THE LINE OF PROCEDURE. It Will Be as Indicated in Harmon's Annual Keport. WASHINGTON, D. C., Jan. 22.—The line of procedure against the bond-aided | Pacific railroads wiil be as indicated by the Attorney-General in his annual re- | port. The part of Attorney-General | Harmon's report referred to is as follows: | “The report of Hon. George Homely, cial counsel of the United States, which ffixed to the report, shows that there 1smo substantial change in the state of | the litigation about the Union Pacific Railway and its branches. I have grave | doubts as to the ability of the Government to preserve the present situation much | longer. 1 am advised that an attempt | will be made to enforce the Government's | appearance 1n the foreclosure case, with a | view of giving a complete title to the pur- chaser at the foreclosura sale. | ““While I believe the position heretofore | B | taken and still maintained by the Gov- | ernment is the true one—namely, that its | appearance cannot be compelléd—it must be confessed that the contentioh of oppos- ing counsel is at least debatable—namely, | that while the Government cannot be sued with a view to recovery again, it may ] properly be made a party to a suit iu | equity brought by the holders of bonds issued by its express consent upon prop- erty on which it has itself received a lien, *‘As the only obiect of steadfastly keep- ing the Government out of the case thus far has been 1o secure some favorable solu- tion of the difficult problem presented by its ownership of a subordinale security upon property whose value is generally believed to be insufficient to pay in fall any but the first-mortgage liens, I think that, unless the pending funding bill be passed and accepted, the Government should endeavor to secure terms for its appearance in court in the way of an as- | the case of a judicial settlement as will se- | cure to it a fair realization of the value of | its lien. If this be not done and the Gov- ernment should be compelled to sue to protect its own interests, or required to appear and set up its claim in the pending es, the benefit of the position so long | maintained may be largely lost.” i e STATEMENT OF REORGANIZERS. Guarantee of a Minimum Bid for the | Union Pacific. NEW YORK, N. Y., Jan. 22.—The fol- lowing statement by the reorganization was made here to-day. “The Union Pacific reorganization com- | mittee has come to an agreement with the | Government, in accordance with which | the latter has’ bezun foreclosure proceed- | ings of its lien upon the Union Pacific THE VOKE OF LABOR The attention of the readers of this paper has already been called to the action of a ““mass’’ meeting held last Sunday afternoon at which an attempt was made to show that THE CALL was ed to the Labor Bureau bill now before the Legislature. st and intelligent mind that there was no ground for the charge made at this meeting has been i in THE CALL, but it seems that some one is interested in spreading a false statement about Anonymous circulars giving the resolution passed at the so-called mass-meeting are being circulated throughout the City, and the malice and dishonesty that are back of the thing is most- shortsighted. falsehoods, and the Long Green flavor of the thing can no longer be hidden from the public, This despicable plot to injure THE CALL will recoil upon the heads of its authors. rivalry is everywhere approved, but the rivalry that resorts to anonymous letters and false s can only succeed where all are as dishonest as itself. The Typographical Union held a special meeting yesterday afternoon, at which the false charges against THE CALL- were discussed and denounced. eulogized as a ftiend of organized labor, {and resolutions were passed disowning any responsi- bility for the action of the meeting on Sunday afternoon. majority of the unions in this City, met last night and formally declared that it had nothing to do meeting or its action. The Voice of Labor, one of the ablest and stanchest supporters of unionism in the United oppo! prin the matter. manifest to tt cha < with the ““mass The Examiner alone can benefit States, prints the following editorial in its current number : We give space in this number to a statement by THE CALL in reference to its standing with in this community, THE CALL employs many people, and the Typographical Union has always found the present proprietors to be in hearty sympathy with them. They have given to the printers in this City who have been thrown out of employment in the other daily of- fices by the machines the only asylum to earn a livelihood. in machines in the near future, THE CALL has for over two years kept the wolf from the door of the laboring cl many an honest workman. fair and just. The resolutions of the chapel of union men employed by THE CALL shows the office to be The strife for supremacy between the great dailies should have nothing to do with the workmen, and honors should be given to those who are dealing fairly with those in need of em- ployment, and we know of no reasons for any body of men to pass resolutions denouncing the course taken by THE CALL in regard to the right of labor. THE CALL has shown its sympathy in many ways, and a great deal of praise should be given to it. own knowledge there is not a union on this.coast that is unfavorable to THE CALL, and, far from In Evidence that would satisfy any The proprietor of THE CALL was The Labor Council, representing a It matters not whether they are to put by the dissemination of these Honest conclusion we can state of our being antagonistic, no trades unions or labor council has passed resolutions denouncing THE CALL. | by the company to the Government, with | annum. | political in my visit.” lines, inclusive of the Kansas Pacific line. The reorganization committee guarantees a minimum bid of sometuing over $45,000,- 000 for the Government’s claim upon the jailroad and for the Government Union Pacific sinking fund, and has deposited $4,500,000 as earnest .money, Kuhn, Loeb & Co., bankers for the reorganization com- mittee, have assured the company the funds required to carry its agreement with the Government inta effect. “By the terms of the settiement theGov- ernment will rec:ive the original amount of the 6 per cent bonds issued by it in aid of the Union Pacific, less payments made interest at the rate of 34 percent per “The detailed statement of the debt of the Union Pacific, made on Octover 1, 1896, was as follo’ “Principal, $27,236,512; interest accrued and not paid, $343,748; interest paid by the United States, $46,004,744; repaid by the Uanion Pacific, $15,983,035; balance of' interest paid by the United States, $30,- 105, 7 principal of Kansas Pacific debt, interest on Kansas Pacific debts, $6,493,843. ““The principal of the debt by the forego- ing ficures amounted on October 1 to $33,539,012 and interest to $36,944.300, while both together amounted to $70,483,812. “The sinking fund created for the pay- ment of the Government débt now amoufits to something over $17,000,000, and itis chiefly in Government railroad bonds. This fund is to be retained by the syndicate formed to proyide funds to pay off the Government debt ahd to carry out the reorganization plans. The netamount to be paid to the Government is, there- Tore, $28,000,000.” SHERMAN'S SUCCESSOX. Governor Bushnell May Appoint a Labor Representative. COLUMBUS, Onro, Jan. 22.—The in- tense interest in the selection of a succes- sor to Fenator Sherman brought nearly the whole membership of the seventy- second general assembly to the reunion to-day and banquet to-night, where Gov- ernor Bushnell presided and Chairman M. A. Hanna, among others, responded toa toast. 2 “I have merely come down for an out- ing,” said Chairman Marcus A. Hanna this afternoon. ‘I have not been in the | best of health for'some time and took ad- vantage of the kind invitation to join in the reunion of members of the general assembly, with nearly all of whom I am personally acquainted. There is nothing Governor Bushnell called upon Chair- man Hanna at his quarters 1n the Chitten- den this evening, and the two chatted for a short time. The report comes directly from State Chairman Kurtz, who is very close to Governor Bushne!l and Senafor Foraker, that Governor Bushne!! will not appoint Mr. Hanna to the ‘Senate. From this source also comes the statement that the Governor will not call a special session of the Legislature. From other sources it is reported that Bushnel! will propose to Hanna that mmasmuch as the workingmen were appealed to in the late campaign to sup-! port the Republican tickst and responded | nobly, und there are plenty of rich men in | the Senate and no representatives of the laboring classes, one of the latter should be appointed to the vacancy. To meet this the Hanna advocates are using a statement made by John McBride, ex-president of the United Mineworkers, to the effect that Hanna was the fairest man in his' dealings with his employes that he ever knew. The toast assigned Mr. Hanna was: “Onio, the Mother of Presidents—How They Are Made.” - COAST AND HARBOR DEFENSES. Closing Session of the Convention Held at Tampa, Fla. TAMPA, Fra, Jan, 22.—In the Coast and Harbor Defense and Improvement Convention, which closed 'its session to- day, the commission submitted its report, which was adopted without debate. The resolutions provide that the convention shall not submit any suggestions to the United States Government looking toward the appropriation of any specific sum of money for the National defense, leaving the matter entirely to the recommenda- tion of the proper authority. The army reorganization or Lamont bill is fully in- dor:-ed, and an early consideration of the bill by Congress is urged and its passage recommended. Anincrease in the annual appropriation for the State militia of the United States and the distribution of Springfield rifles used by the United States army among the militia or National Guard of the vari- ous States is recommended. Congress is urged to enact such legislation as will give proper attention to the naval reserves of our country, The yearly addition of fight- ing ships and forpedo-boats to the strength of the navy is recommended. The attention of Congress is called to the necessity of immediate protection to the seaboard of the country. The committee on resolutions further recommended the organization of a National defense organization and tbat the following gentlemen constitute the officers of the permanent association for the first year: President, General Horace Porter of New York; secretary, Colonel J. Frye of Massachusetts; first vice-presi- |- dent, General, J. B. Gordon of Georeia; second vice-president, General Lew Wal- lace of Indiana; third vice-president, Hon. A. K. McClure of Pennsyivania; fourth vice-president, General R.. A. Alger of Michigan; fiith vice-president, M. H. de Young of California; sixth vice-president, General William Miller of Florida; seventh | behind. vice-president, Jonn C. Pope of Magsachu- setts. THERE'S BLOOD UPON HER DECKS Arrival of the Madeleine After a Tragic Run From Callao. An Ol Injured Eleven of Her Crew. That Reported Du:l in Midocean Was a Murderous Quarrel B-tween O!ficers. Alter an eventful trip from Callao, Peru, the French collier Madeleine came in yes- terday morning. She has had an explo- sion on board, and eleven of her men were hurt. She had a scandal, too, and a shooting affair—it was said at first it was a duel—end now her chief engineer is in tbe brig on a Spanish warship at Acapulco and her second officer is in the hospital. ‘The Madeleine is fitted out for the oil trade, and it was one of her cargo tanks that exploded, She was off Callao when the accident occurred, and not one of'the eleven men who were then workiug in the bold escaped injury. Three of them were very severely injured and had to be left The cause of the explosion is not known, but it must have béen of ter- rific force, for it almost wrecked every- thing in the interior of the veszel, The Madeleine sailed from Callao No- vember 16, and off the Mexican coast her engines broke down and she ran into Acapulco for repairs. It was after the Madeleine left Acapulco that the shooting affray occurred. Callao the engineer, a Peruyian named Abe Necanicen, brought his wife on board for passage to this port. Before reaching Acapulco the second officer, Dramand, and the engineer frequently fought, the cause being the engineer's wife and the remarks which Dramand was in the habit of passing upon her. When the Madeleine left Acapulco the feeling between the two men was very bitter and she was hardly in blue water before it broke out in a storm. It ended Tank Exploded and| Al‘ by Necanicen going below to his cabin? and reappearing on deck with a revolver he shot the second officer, who was stand- ing near the companionway. There was no word of warning from the engineer, no talk of wrong to himself or his wife; it was a cold-blooded murder, so the officers of the Madeleine sav, and the engineer was at once put in irons. The second officer was so badly wound- ed thatit was at once decided to leave him in Acapuico, so the steamer put about and ran back. The wounded man was putin a hospital, but it was evident | he was fatally hurt, and when the Made- laine left jor San Francisco they said ‘he was dying. Necanicen was to be heild by the Mexi- | can authorities awaiting the result of Dramand’s wound. If the second officer has died he will be tried for murder. 1t was at first revorted that the mate and the engineer fought a duel on the deck of the steamer, but the officers say that the engineer fired at the mate from behind and while he, attending to his du- ties, knew nothing of the approach of the man bent on his life. NOTED SWINDLERS IN JAIL. One Is McOonald, Who Was Suspected of Having Written the Fair Pencil Will. CHICAGO, TItr., Jan. 22.—George F. McDonald and Edwin Noyes Hills, who, | twenty-five years ago, made themselves | famous by aiding George and Austin Bid- | well and swindling the Bank of Engiana out of £1,000,000, are locked up here on complaint of the J. W. Butler Paper Com- pany of thiscity. Aiter the arrestof the iwo men McDonald was susp-cted of hav- ing been the- author of the pencil will of | the Iate James G. Fair of S8an Francisco. He is known to have been identified with swindling schemes of almost every kind throughout the country. The San Fran- cisco authorities were communicatea with and a reply was received by the police hers this evening to the effect that the | prisoner was not wanted there. By the arrest of the men the police be- lieve a larze swindle has been frustrated, They are charged with having ordered a large number of letter-heads and bill- heads bearing the firm name of the Butler Paper Company from a printer in Joliet. The latter suspected something was wrong and communicated with the firm. They had given no such order and the police were notified. McDonald was followed from Joliet to Chicago and rested. Several Lotes and papers bearing the name of the paper concern were found in his possession. To-day Hills, a coufederate of McDonald in the gigantic English swindie and who since has been identified with him, it is alleged, in a number of offenses, was arrested. ! | DUCKWOATH DVERCONE Stricken With Apoplexy as He Reads a Report of Censure. BUT THE CHIEF CLERK HAS DEFENDERS. Honest Assemblymen Acknowl- edged That They Asked for Friends’ Appointments. NO GRATITUDE SHOWN BY THE FUSED MINORITY. They Iosist Upon Making a Scapegoat of the O!ficial Who Mede Up a Roll at Their R quest. SACRAMENTO, Cin, Jan. 22.—The Democratic and fused minority carried out to-day the programme upon which they had agreed, which was to make the most of the Duckworth affair, and to ren- der it so conspicuous that as much odium as possible would be attached to the Re- publican majority. The minority didn’t care whether Duckworth individually or the Republicans collectively were to be placed in the roasting-pan. Either would be good enough fish for their net to salt down for the next campaign. The inconsistency of the whole matter was that nearly all the Democrats and Populists had voted to pay the employes on the temporary roll a week’s pay for a | day’s work, and among those so voting was ex-Congressman Caminetti, the leader of the Democratic minority. Caminetti had requested Duckworth to place two of his friends on the roll and Duckworth had complied with his request. Caminetti, however, was not lacking in gratitude, as were many of his associates, and be re- mained passive and silent during the whole of the proceedings. Assemblyman Pridgford, a Democrat | from Colusa, and Shanahan, a wild-eyed Populist from Bhasta, led the agitation to-day. Bridgford did not ask Chief Clerk Duckworth for any appointments on the temporary roll, and therefore did not receive any. Two young friends ot Shanahan had gone to the chief clerk and had informed him that Shanahan wantea their names placed on the roll, but that they were unable to find Shanahan, that gentleman at the time being under the in~ fluence of a severe attack of malaria. So iliness was the only thing that pre- vented Shanahan from being gagged by the uprightness of his own conscience in the same manner as was his ex-colleague, Caminetti. During the discussion the Democrats did not even attempt to explain why they had voted a week’s pay for a day’s work, and why they had thus paid off a few political debts at the expense of the State, while at the same time they were clamor- ing for retrenchment with the persistency of a woman demanding a new bonnst about Easter. In order to raise adust as to the iden- tity and the whereabouts of the real cul- prit they focussed their attacks upon the unfortunate clerk who had, pernaps, overreached his duty in the attempt to 2 i G “Oh, well,” says Chief Clerk Duckworth, with a dainty little shrug of the shoulders, “there are others.”