People's Pilot, Volume 5, Number 36, Rensselaer, Jasper County, 12 March 1896 — MORGAN’S PLAN. [ARTICLE]

MORGAN’S PLAN.

Alabama Senator'« Solution of the Pacific Railroad Trouble. Washington, March 10.—Senator Morgan Monday introduced in the senate a long document in the shape of a resolution embodying his ideas of a plan for the reorganization of the Pacific railroads. The resolution instructs the committee on Pacific railroads to report a bill, either an original bill oi an amendment, containing provisions for refunding the outstanding government Pacific railroad bonds held by bona fide owners, who are not indebted to the United States, and also the first mortgage bonds; the refunding bonds to run for thirty years at the option of the government, and subject after ten years to be called in and paid by the United States and to bear interest at the rate of 3 per cent. The refunded bonds are to be held by the United • States treasury and be exchangeable for the old bonds. They are to be secured as the present bonds are. A sinking fund Is to be provided for. to be deposited by the companies at the rate of 6 per cent per annum, to pay the interest of the bends if not paid by the railroad companies. Direction is also given for taking possession of the roads by the government under the provisions of the act of 1896. The document closes with a declaration that the government is possessed in its own right of all the property of the Pacific railroads, and that it holds it as the means and instrumentality of national government and of interstate and international commerce; that it is necessary that the roads should be consolidated as one through line; that the government will preserve the property as far as is consistent with Justice for the payment of all lawful demands, and when the roads are freed from debt will permit the owners of stock to share in the ownership according to the value of the property.