New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-01-28
TIE UNION PACIFIC BONDe
A nrpurrEa FROM A BoxDnoLDER.

A REBUTTEa FROM A BONDHOIDER.
TO the Bdttor Of rae Trfbune
SIR: In THE TRIBUNE of the 18th, endeav-
ored to show that while the Union Pacific Railroad wac
in an unfinished state, bonds amounting to about
900 issued by the Company, the payment OF
both principal interest Of which were made depend
ent soely upon the earnings Of the road stated In
explicit terms, that the Government held second mort
gage the road Of from e2o to sSoooooO and
that 1t stpulted with tho mortgages that not more
than part Of the charges Of the road on Govern
ment transportation should be required In payment OF
principal and interest OF the mortgage bonds during
thirty years We referred "enactments OF Congress-
and to uniform practice Of the secretaries OF tho
Treasury, sustain these views, and stated that We
were on that understanding induced to purchase the
income bonds Of the Company. In your comments you
deny the fairness" Of statement, and sub
stantialy assert that the Government never either
by declaration or implication, stipulated to DEFER
the payment Of the interest due from tho
Company on It's bonds and that the action OF the officers
as it fell dnc not prompted BY considerations Of
legal right, but because OF the ,.iant,e s %n INC
Of the action Of Secretary Boutwell, in this matter mil
hons upon niops have been lost By holders Of the
stances in the financial ruin Of Of the best and
Of sns sss aat
ton Of THE TRInvSE ought not and eanpSt afford 70
sss saSa u
being prepared with reasons and sustain its
In my second communication in the Tribune Of the
18th inst stated most explicitly that there is nc dner
ment mortgage the road and that its interest as
well principal ranks next 70 the first mortgagc bonds
close Of your commens In the face q this charge
prior lien in equity on road to the Governments
second morsases merely wIc nefar
is susceptible Of modification. through agreement Of
parties. have nowhere charged that the income bond
"nd or ia rsns but "n the that
are dependent reimbursement VI both primo pal and
interest solely" such receipts * may accrue To tho
road after tho Just and lawful dues Of the first and
second mortgages are satisfied IL Is not Tor me to show
the why's and wherefores that induced Congress 10
modify, by enaetments its interest account with the
road, and to defer rs payment, j, in part to 40
think that with the aid Of TE TnpUsn's admissions be
!" To- might be very e s' he
Union Pacidc Rread the time required for the trans
sc Of P nna rap %s Ws resd qo
months days; that the Government was relieved from
who charged te price Of 10 barrels flour, more
the transportation Of one ACROSS the Pla's and other
thnE il MOI IMPROBABLE that the saving Government
for the pred period between that allowed for the
wond reach greater than the deferred balance Of
Compounded would amount TO e. the end Of the
| 20 Year, That republics arc ungratefui has become
proyerb-iet it not added that they also unjust
hypothe-sIs, and draw parallel between the
taken By tho Secretary Of the Treasury In tho matter Of
Union fasss snd c o
that admitting SeSeps Ba tn, and a ssFs were pn inc
tended to be paid legal rather than
Government had debarred tse OF .9e 70 6aKs
unofficial agents. without rebuke, tn obtain money rom
the public their assurance widely adveflsed at
Tho bonds were paid In coin. argued rom tis
that the holders Of the Union Pacific Income bonds had
s stronger claim ON than the holders VI
10 defer the payment one-ba the interest due from he
road the Government bonds thereby sanetonns thS
l,rf the rec a.
Government them to obtain large sums OF money
the Do .s nSr did TO
the intention OF either the Committee VINO consueea
that passed. it, that the S2o intended to be paid in
egaItenders But certainly the facts you an
conductor the bill through Congress himseg after
ward the payment OF the bonds In greenback
Saso n hypothssis upon 1t seemed that THE TRIBUNE
deemed the matter more serious than was intended aud
ton. and to showing that the $50 bonds were really
u. first 70 bs Paid in eSO Bs from Whence sp
mSntsi why precisely from the sources and from the
S Inc Il Pa a es
You state IN proof that Gss Fssssndsn Ms s Ta
n nr and not therefore unofficial agents" always
maintained that the S,os were payable IN u. soi nr
the original Intention in relation payment Of these
bonds simple fact that the highest nn 9
SleS the promise that tho FveTweniies should be paid
thereby obtaining the Bsoss s ass # for mo-
4
other reason pay the bonds In con just ~ tne sv
nunus and concurrent action OF Secretary Boutwel, IN
rrcard Ia the accrued interest the Union Pacnc pohu
whereby the mans4ers OF the ROAD were ht t
haya other wise got, has established the
rive 10 the enactment Of Congress concerning ~. nut
now let ns suppose that Chase and all otner
In body wcrs that they naa aiteren ,ner
icws on the subect-that Five Twenties should be
paid In greenbacks-w0uld that alter the case A..
Not az All no than those two Iea9ers OF tne
House, Old Thad. and Ben Butter ,t a. ~ senra
tactics did In the matter OF the F1veTwentes OF oeeie
tarv Routvells recent change OF Views shoud ia the
matter of the Union Pacific's Interest account
nut pardon me saying that think your reasoning
less conclusive In the closing afgun', h I'D IN
eet to prove that the sos meant 10 DO pau IN
coin from tho that by the provision OF te se as
CREATING the certain coin revenues were sc. hpa W
nav the Interest and principal oi the oonos .ns
rv nouIwel has been derclict u his duty, TOT see
FREQUENTLY propositions I'm the public Journals snanA,,ns
from, the Treasury Department, inviting the public,
under certain conditions to ao nS Min cream
49, NJ gems hs has purchased a discount OF son,e
10, s 70 Iwenty per cent with the very gold
that TaDss says was os , sss s spnS ' snd
hahv nroying that they meant TO be paid In coin
thou art jewel" but alas, how seldom II
q ~ hc found now by this method OF whipping tho cat
as d buy thesa coin bonds for ~ To Us cents gold
~ ,hc dollar We would venture 20 suggest whether u
aud ,d he for the Secretary To come out HAT
co.J and make his propositions for the edempton oi
HiaIy ara,iunlly pave the through famaiizing the
. MI dealings In godto earlier return Ia specie
psymcnts Enough said now ana hope forever on tho
subject. . -" w.
IAs our space is limited, and we really cannot
afford our correspondent another column, we
rive him the benefit Of the last word, and close