THE OMAHA DAILY BflEt SUNDAY , DECEMBER 8 , 1895 , 10
HINTS FROM FALCONER'S STOCK !
SENSIBLE , ATTRACTIVE , APPROPRIATE
CHRISTMAS GIFTS
Every Department in our Store Contains Most Acceptable Articles Suitable for Presents.
Young Men and Maidens Little Little Maids and Little Tots
Under the mistletoe bough will think of forfeits may we hint
Fans moderate in price or elegant and costly Pocketbooks Plain Will be delighted with our display of goods on the second floor.
money holders or wonderful combination purses solid gold or
silver trimmed. We discovered a regular room full of toys. As yet we are un
Handkerchiefs An immense assortment ranging in price from able to tell you what we have on Monday morning we will
3 cents ( our lowest ) to $50,00. These last real laces always correct. be ready. Prices well , simply ridiculous. We want to charm the
Art Goods Pillows , sachets , pretty holders , covers , etc , , suggestive
little them with .
gestive of the Orient redolent with the choicest odors from Araby. ones please bring you.
Gloves For every day , reception , evening. Matter-of-fact folks , will buy new style Jackets serviceable as
Mitterfs Silk Kid lined otherwise.
, ,
or well. Our price , $4.75 for a beautiful garment , Astrakhan Capes ,
Practical you will say yes , and we think appropriate.
Perfumes delightful and fragrant and a few most enticing just a few left at $6.98. Last Friday we received a few new stylish
things in atomisers. Jackets and Capes all will be sold at the same low pr ices as have
What Man ? would not be pleased with one of our Umbrellas ? earned for us the reputation of having
Simple rain shedders or the newest , nobbiest ideas in Congo , Silver
Mounted , all silk dressy affairs Canes to match if desired.
Ties , Suspenders , Handkerchiefs , initialed , in boxes a higher s
grade in these than is usually found in dry goods stores. The prices
irresistable. Just a few pieces left of the wonderful bargains offered in Colored
Our Book Department is rilled with such books as would delight '
think of who would
ored Dress Goods You can someone gladly accept -
"Bacon" were he living now. Some to scan , some to swallow , others
to chew and digest. . , ' cept a present of a dress. Cost very trifling. Ask your lady friends ,
Calenders Beautiful , useful , unique and marvelouslylow in price. ' please , about this item ,
HIE PACIFIC RAILROADS
fieviow of Their Condition and Prospects
from a Government Standpoint !
SECRETARY SMITH ON NATIONAL CONTROL
niul VrolUnlile IMnii , Fortl.
lleil by SlallNtlcN llufcrciicc tea
a C'oiuiiilHNlou Ilceom-
i iiieiulod.
The report of Hon. Hoko Smith , secretary
f tlio Interior , contains nil extended review
of the relations of the national government
with the bond-aided Pacific railroads ,
their earnings , debts and obliga
tions , and the several plant ottered
for a settlement of the government's
claim. Included are statistical tables show
ing the amount of bonds Issued and the date
of maturity , also the secretary's conclusions
as to the best moans of protecting the gov-
, ernment's Interests.
That portion of the report will Interest the
great west , and Is as follows :
The government directors of the Union Pa-
clflo Hallway company , as the result of a
personal Inspection and examination of "the
railroad , Its roadbed , and all Its appur
tenances and rolling stock , " as operated and
maintained by the receivers , find the physical
condition of the properties "up to the host
standard. "
Tlu-y also submit n comparative statement
of the results of financial operations for the
years ended Juno 30 , 1894 and 1895 , which
exhibits a decrease In the gross earnings of
the aided or main line ( brldgo junction ,
Omaha , Neb. , to a point five miles west of
OKdcn , Utah , 1,029.481 miles , said five miles
being leased to and operated by tbo Central
J'acllle ) , of $916,000.
The report revlows at considerable length
the litigation pending In the courts of Colorado
rado , Kansas and Nebraska , having for Its
object the foreclosure of certain mortgages
upon the properties of the Union Pacific ( main
line ) , the Denver Pacific and the Kansas Pa-
clflo , foreclosure suits having been Instituted
I > y reason of the Inability of the receivers to
pioet , at maturity , tbe Interest fallIng -
Ing duo on the various mortgages.
It presents questions of "great gravity , to
which the attention of the department and of
congress Is seriously Invited , " to wit :
(1) ) Whsthcr the properties of that part of
the Kansas Paclflo which lies east of the
Kansas-Missouri state Una and which em
braces valuable terminals In Kansas City are
ubject to the government lien , and (2) ( ) "what
w'ould \ > 3 the effect upon the Utter of a de-
croj of foreclosure anil nala of Uie properties
on the main line of tbo Union Pacific ?
One of the government directory , Mr , W , J ,
Coomba , In ft written communication to his
associates and co-directors , presents lila views
with reference to an adjustment of the gov
ernment debt. This communication U sub-
lultted an part of the report.
The action proposed , which will probably
take the form of a bill to b presented to
congress , la as follows :
For the purpose of reaching a reasonable
nasls of settlement , and also affording to the
government the protection which the present
ultuatlon appears to require , we euggest the
following notion ;
"First. The attorney general shall ,
immediately after the maturity of any
portion of the debt ! due to the
United States from the Union Pa-
clfio Hallway company or the Central Pacific
Hallway company , Institute proper proceed
ings for the protection and foreclosure of
the lion of the United States from Omaha. < o
Ogden and similar proceeding ] for the pro
tection and foreclosure of the lien of the
United States from Ogdtm to Sacramento and
thence to San Jose.
' 'Second , The cocrctary of the treasury
hall have the power to pay , pettle and ad.
Just all amounts due or to become du for
$ > rIoclj > U ud Interact which are lecured by
liens prior to the said liens of the United
States affecting the properties above re-
referred to , Including the power to take as
slgnments of any foreclosure decrees or mort
gages securing such prior lions , If necessary
"Third. The entire railroad property af
fected by said government Hens , extending
from Omaha to San Jose , shall , under orders
of court to be entered In the suits to fore
close the said Hens , bo forthwith sold , under
the direction of the secretary of the treasury
ury , to such purchasing committee or cor
poration authorized ! to lake title to the same
09 will agree to refund the entire amount ad
vanced by the government for the discharge
or purchase of prior liens , and of the Inter
est on the same , and an amount not to bo
less than a sum limited by congress as to
the minimum to bo received In satisfaction
of Us claims against the Union Pacific Rail
way company and the Central Pacific Hall
way company.
"If at such proposed silo no commlttea or
corporation will bid the minimum price so
fixed , It shall bo the duty of the secretary o :
the treasury to report the facts to the nexrt
session of congress for such further action
In regard to the minimum bid as congress
may think proper to take.
"The purchasing committee or corporation
purchasing said railroads shall have power
to possess , control and operate the same , and
to complete construction between Sacramento
City and Oakland , shall not be allowed to
consolidate with o\her transcontinental lines
and shall bo subjected to reasonable condi
tions as to freight and passenger r/ues. "
The object of the proposed bill,513 stated
by Mr. Coombs , Is to realize the1 Intention of
congress In extending aid In the construc
tion of what was expected to be a uniform
transcontinental system from the Missouri
river to the Pacific ocean.
A violation of this understanding Is , In
his opinion , a main cause of the preaznt de
plorable conditions , the Union Pacific beltig
absolutely at the mercy of the Soiithern Pa
cific , to which the Central Pacific has been
leased and of which It Is under full control ,
compulsion being brought to bear upon ship
pers who wish to ship by the Central route
to the east to compel them to ship by the
Southern route.
The result desired and the object proposed
by Mr , Coombs can only bo reached , In his
opinion , by effecting a reorganization of the
main lines of the Union and Central Pacific
railroads , and no settlement should be ef
fected which does not Include in Its terms
a settlement with both companies.
Ho declares that this demand should be
Insisted upon by the government , even to
the extent of foreclosing Its lien , If It can
not bo brought about by amicable arrange
ment ,
GOVRHNMUNT PONDS ISSUED.
Heports of the commissioners of railroads
show the bonds Issued by the government for
the old of railroads to bo as follows ;
Union Pacific Railroad Maturity of bond :
February 1. 18'Jfl $ 4,350,000
January 1 , 1S37 3.EIO.OOO
January 1 , 1K > 3 , 15,910.612
January 1 , 1820 3,157,000
Kansas 1'aclflo Hallway Maturity of
bond :
November 1 , 1893 , . . $ 610.000
January 1. 1830 1,440,000
January 1. 1B37 2,800,000
January 1. 1893 1,423,000
Central Hruncli , Union Pacific liallroud
Maturity af bond :
January 1 , lK > r , , , . . , , , , , , , ) CIOCOO
January 1 , U97 , 040,000
January 1 , 1SSS 3:0,000
Central Faclllo Hallroad Maturity of
bond :
Jtuiunry 10. 1895 $ 2.302,000
January 1. 1S93 , ] .COC <
January 1 , IS : ) ? . . , , . . . , , 2,112,000
January 1 , 1898 , . , 10,614,120
January 1 , 1SDO 9,197,000
Western ( Central ) Pacific Ilallroad Ma
turity of bond ;
January 1. Ib97. . . , . , . . , . $ 320,000
January 1 , 1899 1,650,500
Sioux City & Pnctno Railroad-Maturity
of tibnd :
January 1 , 189S | 1.C2S.320
Time bonds , Issued by the government
widen the act of July 1 , IS62 , "conrtitutexl a
first mortgage on the whole line of railroad
and telegraph , together with the rolling
stock , fixtures and property of every kind
and description. " nut tbe act of July 2 ,
1S64 , amended tha act of July 1 , 1802 , so ate
to author ! ; the Issue of first mortgage bonds
by the r'-i Mya railroad companies "to an
amount not exceeding the bonds of the United
States , and ] of even tenor and date , tlra of
maturity , rate and character of Interest with
tbe bonds authorized to b Issued to laid
railroad companies respectively , "
F1KST MORTGAGE ! BONDS ,
Tha lien ot the bonds laiutd by the United
States was made subordinate to those issnei
by the railroad companies , except as to certain
tain provisions for the transportation of mall
government supplies , etc. In pursuance o
the act of July 2 , 18C4 , the respective- rail
roads Issued their bonds , which , under the
provisions of said act , were to become firs
mortgage bonds. The amounts and dates o
maturity of said mortgage bands thus issued
are stated below :
Union Pacific Hallway , Union Division
Bonds Maturity of bond :
January 1. 1898 $ < J. < 175.000
January 1. 1897 l.KB.OW
July 1. 1897 1.920,000
January 1 , 1898 5.999.000
July 1 , 1898 8.837.000
January 1 , 1899 2.400,000
Total Union division bonds $27,229,000
Kansas Division Bonds Maturity of bond
August 1 , 1895 $ 2,2IO,00 (
January 1 , 1696 4OtB,000
Total Kansas division bonds. . . . $ G,303XX (
Grand total Union and Kansas
division { 33,532,000
Central Urunch , Union Pacific Ilallroad
Maturity of bond :
May 1 , 1893 H.COO.OOO
Central Pacific Railroad Maturity of
bond :
July 1. 18D3 $ 2,993,000
July 1 , 1890 3,383,000
January 1 , 1S97 3,997.000
January 1 , 1893 15,508,000
December 1. 1893 112,000
July 1 , 1899 1,858,000
Total J27.S33.000
Sioux City & Pacific Railroad-Maturity
of bond :
January 1. 1693 $1.028,000
Total first mortgage bonds $04,013,000
It will bo seen by a comparison of the two
cots of bonds that those. Issued as first mort
gage bonds by the railroad did not In all
ccses follow the requirements of the act of
July 3 , 1SG4 , and that they are not "of even
tenor and date , time of maturity , " etc. , with
the bonds authorized to bo Issued to said
railroad companies by the government , The
dates of the maturity of these bonds disclose
the fact that a bond of the Kansas Pacific ,
for which tha Union Pacific was liable , ma
tured on the 1st of November ot this year ,
while.a bond for which the Central Pacific
was liable matured on the ICth of January
'
ot this year. It will also' be seen that a
number of these bonds mature early in the
next year , and ull of them mature by the 1st
of January , 1809. It would eeom , therefore ,
to be Impossible for congress longer to post
pone action with regard to these bonds and
the property upon which they constitute a
lien.
TUB GOVERNMENT'S INTEREST.
In determining what course should be pur
sued , two objects will receive consideration :
(1. ( ) The collection of the debt duo to the
government ,
(2. ( ) The creation of a great through line
from the Missouri to the Pacific , This was
the original purpose of the government ,
leading to the Issue of these bonds.
I will not undertake to review the conduct
of those who have managed this properly ,
and who have mliuced the government's aid.
A most Interesting presentation , of tha facts
will be found In the report of the commis
sion appointed under authority of an act of
congress approved March 3 , 1SS7 , consisting
ot Messrs. Anderson , Littler and Paulson.
If a suggestion of leniency on the part of the
government should bo made in the Interests
if those who received the government's
bounty , a study of the facts which this com
mission developed will chow that the time
lias come to regard only 'the interests of
; lie zovernment.
The following table states the amount due
jn the subsidy bands and the first mortgage
Jonds , and alio gives the credits on account of
the sinking fund , It shows what would be
the Investment of the government In these
properties If It U compelled to pay off tbe
Irsl mortgage bonds , which alone are su
perior to tbe government lien. It would be
an Increased Investment ot $ GI,613,000 to nave
an Investment already made of $117,430,000 ,
At tli properties are worth very much more
than the first mortgage bond ) , and as the gov
ernment has the second tnortgiga bonds , th
government occupies the position of being
orccd to make good tbe fir ft mortgage bonds
n order to secure lib own claim. If tbe first
mortgage bonds on any plan of extension UN
simply those of the railroad company , they
: ould not be disposed of at the low rate of
nteroit at which the government bonds would
sell , As tli Interest which they would draw
comes out of the property to which the gov
ernment must look for a payment of the second
end mortgage bonds , U would eeem clearly
better that the government should assume 1S94 370,159.80 214,400.27 91,759.6
the , first mortgage bonds , guarantee them Total . . . .J5.52I.4IS.93 f3.OI9.93S.90 11,874,490.0.
and put the rate of Interest at the figure for Av , 10 yrs. . . . 502,441.19 SOj.VOj.bJ 187,419.00
which the government bonds sell If the bonds KxpendltuiOB do not Inclu.lj annual interest on
are -to be renewed or extended. first inoitcnge bonds , $96,090.
COST OF CONTROL. .
Cost to the United HtntM of obtaining nosstBslon , by foreclosure , of the bond-aided Pacific rail
roads , as of date June CO , ISM :
Transportation services rendered and cosh payments on account of 5 per cent of net earnings.
The total Issue of bonds by the government
upon the bond-aided lines amounts to $ G4-
C23.012. Interest on thd same to June 30 ,
1895 , Is $105,083,986.43. If the government
has the right to apply the sinking fund col
lected under the act of 1878 , known as the
Thurman funding act. n credit can be made
upon this amount of $52,873,406.34. leaving
a total due the government of $117,430,002.09.
A study ot the act referred to muat create
a doubt as to the application of this sinking
fund. It may liavo been the Intention that
It should be distributed according to existing
priorities and not to ths Government alone.
Tha right , however , of the government to
apply the sinking fund to Its debt is chiefly
material In fixing the time when defaults on
the part of roads occur , for the properties
are worth much more than the first mortgage
bonds.
The , following tablca show the gross re
ceipts , expenditures and net receipts of
each of these roads for the past ten years :
UNION PACIFIC RAII.UOAD COMPANY.
Orors Expend Net
Yearn. receipts. itures. reei-lptn.
mr , t i,2i5 , < 5i,7i , , . 4.4 ,879.10
1S30 12,1SO,038.2 ( ) 9,705,160.49 2,474,877.71
1SS7 13,4S7,7CI.S5 9,42G,813.M 4,070,910.77
- ' 10,418,240,70 4.IU3.32G.79
1S5) It , ! ! " , " ' " . ! * 10,47S , H1.4r 8,939,811.73
1S90 15.1fr,31C.3J . ( 11,194,342.92 3OS3'J73.41
Dm 4 * f-t TI to A f\ct > * in f > a , ( .
1891 . . . . 10OF8. 10,98 4(65,094.00
1892 . 11,631,755.23 9.6SO,120.fll 4.91S.623.23
U'JI . 13,31fi.01t.OJ 0.717,601.2 * 3.538,509.77
l&H . ll,25G,271.2j 9,2 ,0:1.77 1,93CG.45 , !
Total . ,1156,191,700,43 J9S.OMfll.76 ! ! $33,141,741.67
AV. 10 yr . 13,619,170.01 P.803,001.67 3,414,174.17
Kxpendlturcs tnrluda annual Intcicst on llrtt
mortgage bonds , (1,633,740.
CKNTHAL PACIFIC RAILItOAD COMPANY.
Groin ' - ' ' Hxpend- Net
Years. receipts. > Iturex. rCH.'li > ta.
1SS5 . 6,049.214.73 J'W. ( 3.C I f03.54S.ti ;
16M . eC3.4 > 4.45j SM1S. .17 1.471.642.C4
1M7 . . . , , . . . . 8.021.763.M 0,279.215.03 1.744,548.kO
888 . 0.178 , K0.67 .1,633.915.43 1,541,351.08
m . S.8J1.CH.4.- 7CG.4 l.b4 1,309,122.01
. I.OIZ.fcOl.OO
UI91 . , , ei .29'.8tI ) 7.GS7.S81.61 2.113,915.20
1893 . 9,121,002.24' ' 7.575,106.00 1,64 ? , 895.3-1
1893 . , 8,991,809,24 ,7,40' , ) . 820. JS 1.4M.9I2.66
1891 . 8,2M,313.S2. 7,208.978.90 1,017,335.02
Total . . .J83.WOM3.C3 , JC9.34S.502.27 114,152,003.36
Av , 10 yr , , i.J50,050.5 ' C 3lS50.23 1,415,2JO.S4
Expenditures Include nnnual Interest on flr t
morlgaco bond * , Jl,071ISO. ,
"
KANSAS PACIFIC H\LWAT COMPANY.
Gross , , . .Hxpend- . Net
Yenrs. recclnta. ( lures. receipts.
1115 , J 3gl5.S7.22l J 1,881,737.78
ISk . , , , 4C 3,232.4H . 2.319,611. U. 1,743.720.40
U87 4.H5.8M.C8 I ! ; 6 3,17(1.00 2,052,701.68
US ) , , 3,324,567.03 J,9S7lSii.48
' 783,316.08
bCO , 3.040.12.13 z2G3048.93 ! ! 774,173,20
S91 2,93',76.47 ' ) 1.7K.155.C5 1,223C08.M
ItS 3.4IM59.7D 1,917,19U,4C 1.501,260.33
893 . , . , , . , . . 2.4U.657.S5 1C1G.8S ,27 Stti , 65J.OS
894 , 2,033,872.71 1,848,583.10 C09,2S9.C4
Total . . .JS2.375.C77.SO J19.e49,490.l J12.788.lll.43
Av. 10 yrs. , 2,237,587,78 1WI , > O. 3 1,272,018.H
Uipcndlturn do not Include annual Interest OD
first morteage bondi. J37SliO.
CENTUAti 0RANCII UNION PACIFIC RAIL-
KOAD COMPANV ,
drou ExpendNet
Vfsr . recelnii. llurr * . recelnti ,
1S83 J 878,047.79 J 031,011.09 J 217,028.70
1SSS , , 7Z4.2C2.70 4li.503.7S 3C0.7UI.95
It87 6H.7U.07 300,011.U 2S7,7M.(2
1U8 420.034.W ei,113.l9 ; 1IT.JW.01
U83 . , . , , , , , . , 433,313.63 287,102.01 1I6.2M.C4
1834 4S4,77 .C < m,005.i { tJ.nt.4-J
nil , . 4S3.9 ; .14 Z97.M9.J7 13C.iM.77
lltl . . , , . , , , . . fr/J,633.SO 305,770.47 243.7SJ.S3
1S)3 ! ) . , , . , 4lCH.6J IU.W0.2 } 143.U9. : )
SIOUX CITY & PACIFIC RAILROAD CO <
ISxpend- Not
Years. receipts. Huics. receipts.
lESi . J 475,905.28 2S.GS5.61 ! 257.519.75
1S88 . 4S7.SS5.0I1 237,095.69 250,189,47
1SS7 . rwS.054,12 309,003.63 2I8.688.C9
1F.S8 . G17.290.60 373,817.77 141,072.89
1SS9 . 008.771.07 302,964.90 205,8)6.17
KM . 461.2i3.29 27S.C67.1I1 183.616.13
1891 . 479,394.80 330.6M.10 148,722.70
1SU2 . 4t6.14'.73 459,753.41 26.3SJ.S2
1S9J . 473,632.12 34),786.39 132i > 45.73
Ib94 . 411.b68.08 231,620.37 1S7.247.71
Total . . . .JSM,221.23 t1.1W.Wl.t 11,754.091.41) )
Av. 10 yra. . . 4 a,822.12 313.fc52.CS 175,469.44
Expenditures do not Include annual Interest on
ilrst mortgage bonds , J97.CSO.
It will be seen that the average annual net
earnings of the Union Pacific and Central
Paelflo main lines during the past ten years
have been $8,181,220 , while the t'otal amount
of the flrBB mortgage bonds and the govern
ment bonds Ismicd upon the main lines , less
the sinking fund for the main lines , Is $152-
245,551. CO. This annual net profit shows
the properties to have earned nearly C per
cent on the entire amount ! which Hie govern
ment has paid and would pay If It were com
pelled to pay off the first mortgage bonds.
This beJng the case , It would seem to bo a
clear business proposition that the govern
ment ought not to lose any largo amount If
It should be compelled through foreclosure to
collect its debt.
PUOUADLB NET PHOFIT.
The following table Is prepared for the * pur-
jios-o cf showing the probable net profit each
year after paying Interest charge upon tha
main lines of tlie Union and Central Pacific ,
If the government should be compelled to
tnke up the first mortgage bonds and the
bondu It has already Issued , substituting fcr
both sets of bonds government 3 per cent
bonds :
U. P. Ity. , Cent. P. Ry. ,
Union uU .entire bond'
vision , aided line , T'otal ,
Av. cross
receipts 10
years . . . .113,019,170.01 S.JSO.CM.CO i 21.9C9,232.60 .
Av , Krtna
ex. 10 yrs 9,805,0)1.87 6,934,850.22 16.739,852.09
rocrlpts t 3,511,174.17 1I5KC.:4 ( ,229,330.51
Cost of uu-
qulrlnir
prop-ties 06,658,359.33 8C.C87.16J.S7 153.245,651.00
Interest on total cost at 3 per cfnt.l,5C7Ol,51 )
VAIUOUS PLANS CONSIDKUK1) .
As the original government bonds and the
first mortgage bonds are about due , they can
be paid off at their face value , and as a
government 3 per cent bond Is worth more
than par at the present time , there would be
no difficulty In utilizing a new 3 per cent
bond to pay off or call In both of the other
Issues ,
It will be seen that if such a course were
pursued by the government and this property
averaged in the Xuturu the same net profit
that It has during the past ton years , it
would earn sufficient to pay the 3 per cent
on the bonds which the government would
be compelled to Issue and yet leave a yearly
nut margin of J3,08DOC3.
The government should , therefore , bo able
easily to provide for the sale of the bond'
aided roads to a new corporation which
could meet the aniuiil interest on a guaran
teed 3 per cent bond , equal to the first
mortgage' and the tmbsldy bonds , and also pay
a reasonable sum annually into the treasury
toward tbo liquidation of the entire bonded
indebtedness.
There are various ways in which the In
terests of the government could bo Intelli
gently handled. I present this additional
plan becaupa it Is fcaslbls and because r
shows a way by which tlie government couli
aid the collection of Its claim by reducing
the fixed charges on the road to the lowest
possible figures. It Is'of course , most de
sirable that the government eliould at once
termlnato Its connection with the property
and rid Itself of the indebtedness which 11
has assumed. To accomplish such a result
the government no doubt would bo ready to
submit to a reasonable losa To reduce the
losu to the lowest point it will bo necessary
for the government to negotiate with pos
sible purchasers , and the sum which will
bo obtained must depend , at least In part ,
upon the knowledge of those who deslro to
buy that , as a last , resort , the government
will pay off the first mortgage bonds and
protect Its property.
A plan for the reorganization of the Union
Pacific Rallwav coinnanv has been nrenarcd
by a committee consisting of General Lswls
Fitzgerald and others. An examination ot
their plan shows that the securities which
they mention aa reserved for the settlement
of tlib debt to the United States consist of
$35,7G5,280 first mortgage 4 per cent gold
bonds of an Iwsuo of ono hundred millions ,
and $20,864,100 of preferred stock of an Is
sue of seventy-live millions.
According to the estimates contained In
their plan , these tucnrltles should be worth
In round numbers $45,000,000. against a bal
ance duo the govern.nent of $55,000,000. If
the government is to deal with this wubjcct
In connection with any plan of reorganization
by other security holders , then the true
policy would seem to require that the se
curities ottered to the government be under
written by some syndicate connected with
the proposed reorganization , so that the gov
ernment would receive cash Instead of MOW
securities. Or , If a plan of this character
were under consideration , the offer to the
government should bo BO much In cash , and
not these securities , consisting , as they do ,
of part bonds and part stock.
The proper selection from the variety of
plans open to the government Involves In
vestigation and ) ncgotlntlon which , could
scarcely bo expected from a legislative body ,
The practical way ot handling the subject
would eecm to require the selection of a com
mission or the designation of officers of the
government upon whom the duty should be
placed , and to whom could bo given broad
discretion for the perfection of a plan under
which the rights of the government may bo
protected , It lu not a mibjcct upon which
the government can act by Itself ; It requires
negotiations with possible purchaser * and
representatives authorized to conduct them.
GOSSIP AJIUIITOTI2I ) l > KUrM2.
A few months before lie dlod Horatio Sey
mour said to one of his friends , Uwlght
Uu\rence of New Yorlci "Dwlght , I feel that
[ am near the end of my career , and I want
to ttll you. something , I have had n great
deal to do with politics and with politicians
In my time , and as I look back over the past
I can clearly see that the best friendships
of my life have been formed In politics. It
Is In politics that I have met the manliest
nen , the most generosity. These friendships
mvo bosn enduring , too ; many of them have
jren continuous throughout life. I bellevo
lolltlcs brings out the best there IB In men.
t teaches the narrow man to be broad , tha
Hellish man | o 1)9 generous. This In true , , be
cause friendships are essential to success. "
Miss French ( Octave Thanct ) thus explains
i&w fiho got her nom de plume ; "Octavo
was the name of a school friend. It Is both
French and Scotch. I thought If I could find
another name to go with It 'that was both
' "rencli and Scotch I would adopt that , I was
riding on a train one tlmo when wo stopped at
a way station , and on the Hiding near where I
eat was a freight car painted red. On the
eldo was chalked the word 'Tlianet. ' What It
nfant or how It got there I have not the
slightest Idea , but I decided then and there
o adopt It. Lots ot people still think that
Octave Tlianet la a man. "
American statesmen have not , is a rule ,
exhibited much partiality for life Insurance ,
jut a recent bulletin published by one of
, lie largest companies shown that the follow *
ng lnaurance were carried by tome well
cnown men ; 1'rtrident ClarUeld , $25,000 ; I'reu-
dent Arthur , $ Gii 7j Daniel Manning , ex-
tecretary of the treasury , (6,011 ; General
Icorge II. Thomas , $15,000 ; Samuel Howies ,
110,000 ; John F. Harlranft , ex-governor of
'emisylvatila , $10,000 ; A , U , Gardner , ex-
governor of Vermont , $10,009 ; William 0.
Fargo of Duffnlo , $10,000 ; Joseph D. Bedlo ,
ex-governor of Now Jersey , $5,000 ; Leon Ab <
bolt , ex-governor of Now Jersey , $11,35C.
When Stallone first appeared In the senata
he was ( he recipient of many attentions ,
among them a magnificent bouquet of flowers
from a fair constituent. He way much de
lighted. The bouquet was brought to him
while he was sitting In the cloak room with
Logan , Don Cameron and Hawley of Connec
ticut. After admiring the flowers ho handed
them to a negro attendant , with instructions
that they be taken to Airs. Mahono. He fore
starting on hlg errand the messenger carefully
ren-oved the name nf the lady. "Why do you
do that ? " asked Mahone. "Mr. Senator , " was
the reply , "I'sa betn hero a long time
at dig hero business an' when outside
women send flowers nn' slch to a senator ,
wo oilers take off do card with de 'Coinnll-
ments of Mrs. or Miss So-and-So' before we
takes dem to de senator's wife. " Don Came
ron and the other senators roared. When ho
had re-covered himself , Mahone , addressing
hla brother statesmen , bald : "Gentlemen , I
am a now member of this body , and I see I
have many things to learn from thoss who
arc my seulors In service. Let's have a fresh
cigar. "
Congressional stories are now In order.
Here Is one relating how Congressman Car-
utlt disturbed the serenity of that metropol
itan editor and statesman , Lemuel Ell Qulgg.
"The republican party , Mr. Speaker , "
shoutoJ Mr. Qulgg on an occasion when , met
aphorically speaking , ho was sailing and soar
ing and soaring and sailing , u mere speck
In the licavoua of the house , "the republican
party , Mr. Speaker , on that occasion of the
nation's greatest peril , stood like u gladiator ,
belted alid buckled , booted and spurred "
"Will the gentleman , " Interrupted Caruth ,
with the look of one who was taking a con
suming .interest In Quigg's speech and
wanted full Information on nil points as ho
went along , "will the gentleman penno ! mon.
lion whcro and when It was that tbe gladi
ators wore boots and spurs ? "
The house , as usual , full of approving de
light , yelled Its glee over the Interruption ,
and all vc.ry much to the confusion of Lemuel
Bll Qulgg.
Count Caslmlr IJadenyl. prime minister of
Austria , IB literally a favorite of fortune.
Hla father was n , cook , but no doubt a good
one , for , though ho came with the queen
from her Italian homo to Warsaw , Uu won
the affectlono of his now master , 0119 of the
lafct kings of Poland , and was created a count
lust two years before the prosjnt premier was
horn , nut It wan an empty honor at the
time , for the newly mada count had no fmidn
with which to maintain the acquired dignity ,
and when hlo two rong wore born It looked
as If they would bo obliged to earn tliolr
living. Hut good luck Intervened , Tholr
mother's brother , Count Molr , hud marrloJ
the famous German actress Anna Wleror , and
she , childless , took a fancy to the nephews and
bequeathed to them at her death Imr fortune ,
amounting to several million dollars. This
enabled the boys to procure educational ail-
vantages tultiblo to their rank , and upon at
taining a tmltable ugo they adopted politics
as a pursuit and both achieved succesp.
Count Uadonyl iu distinguished for his jollity
and la without exception the most popular
1'ole at the Viennese court. He Is exceed
ingly bald , with a well domed cranium , high-
: hek bonet' , a fierce moustache , of medium
iut strongly knit etaturc , and the nlr and
tearing of a patrician. Ho has an Imposing
and pleasing presence , Ills fortune , which
10 upends In a liberal manner , Is estimated
at $2,500,000 , whereat his younger brother ,
who la Ucs open-handed and has just been
appointed In Caslmlr'H place ai governor of
the province of Austrian Poland , Is credited
with a fortune of four tlmoi that amount ,
It Is announced In tlie Russian press that
an old man lias died at Odessa leaving 4.000-
100 of rubles to his four nieces , who have
ilthorto been In very humble clrcum-
tances. In order , however , to check any-
hliiK like pride In the fortunate ladles the
uncle stipulates that previous to receiving
ho money tlu-y are to work for fifteen
iioiitlia either as chambermaids , washer
women or farm servants. There are three
executors who are cnJolnM to see that the
sondltion Is scrupulouily reupocted. The
adlcB , It appears , have In coiifeijuenco gen
nto domeitlu Bervlce. It Is said that
( ready they liavu had 603 offers cf inar-
lago.
