New-York tribune., 1875-02-11
p O ST S OR T.
$3.50 "A. WI.
THE UNION PACIFIC'S PROPOSED COM
PROMISE.

, co,,n.Sv ANXIOUS TO REIMBURSE THE GOV
ERNMENT FOR IFS ArD-BAsIs OF coMPRohish
rvIpTSCE THAT THE ADVANCEMENT WILL DE
FAIR TO BOTH PARTIES.
lBY TELEGRAPH TO THE TRIBUSE'l
WASHINGTON. ftb. 10--The Union Pacific Rail
road Company this afternoon submitted to the Sec
rotary of the Treasury formal proposition OF com
promise of all existing difference between that
Company and the General Government. That propo-
stion is contained in the following letter:
OEFICE or THE u. Z. r r. Co, Eew-York Feb 0, 1875
Hon. b. H. BRIsTow. Secretary Of Me Treasury
erR: The existing relations between the Government
and the Union Pacific Railroad Company arc such as
benefit neither party and tend continual to the injury
OF both. The Government, in the prosecution OF
what 1t deems 10 be It's Just rights, has
instituted legal proceedings against the Company for
ter and those cnim are to undergo or aeay
undergone judicial determination. Nothing can be
dsastefl TO this Company than to nave even the
appearance OF resisting Just demand or the f1yetn
ment. The dlrectorf spe2king for the stoeEhoaers,
aid extended by the Government to this magDneent en-
erprise and IL Is their wish TO 90 eyerytni9g ,s n
they can and speedily as may be, every Collar au
yanced from the National Trensnry The Company & nso so
popular esteem and 10 pecundry resources oy pene ~
seeming conflict with Their great oenetac'or the Gov
thing they to establish such relations OF mu'uai
and d. as ns % az Se Ss nme e
the prosperity OF the Company; and by promoting
the Sf fs the the but
extension OF its uses resources, ana facilcs as WI
most rapidly develop the great NaSna res aoiaiI
would respectfully call your attention 40 70
the important fact that this great domain cannot oe Ge
Government lands along the line OF the road and In ad.
Gon increase the area Of & taxable
The mortgage held by the Government IN its terms
he
bonds which is near the close OF the present
TS So n" pn
cipai is due Principal and interest whea
w 70 a es scSs by
Government was only S272365l2 For tbls very large
amount the Government has only second m0ttsage,
provision being made to meet 1t. the Company
viii probably be utterly unable to pay IT, AT ths & same
unable 10 coccf IT, except upon The assumption that 1t
viii advance the money to discharge prior mort,
tceo4nt-a policy which wise craftsmanship could
Sy has BY csa sand9s Of ds6 ioS o
which no provision is made, and the Government Is
drifting further and further from the opportunity to Sc
cure Just return for its advances To do nothing s TO
ujure both the Government and the Complny perhaps
pany all 1t possibly do and secures to the Govern
men substantial return for its advances IL Is as io
The Union Pacific Railroad Company proposes 10 pay
annum on each first day OF July beginnng with 1875.
and TO continue payment for 90 and thereaf
ser on each frat day of July tue payment shall be
s75OOOO. And the money so paid in shall be held
by the Secretary OF the Treasury as sinking
fund TO the credit OF the Union Padihc Railroad
Company specially devoted to the extinction of the
Government mortgage interest thereon SO rec0ned at
six per cent per annum, lawful money, payable semi
apnay and tho accruing interest each half year 10 be
carried to the of tho Sinking Fund to the credit
Of the Union Pacific Railroad Company. And
this annual payment b. the Union Pa,
cido Railroad Company shall he continued
without delay default until the amount 10 tue cfeolt
of he
Treasury shall be equal TO the full amount OF the Gov
errment mortgage reekoned simple interest to same
date The Government lien existing to Iemaiu as
security for the discharge of ills Obligation and to b
cancelled when the sinking fund thus created shall equal
interest at which time said sinking fund shall be trans
ferred and shall vest IN the United States And this
pay med shall be in u discharge OF all o0gatiOns due
from the Company 10 the Government
Should this suggestion meet with your approval,
would respectfully request on behalf ot tne COMPANY
such favorable recommendation 81 you may deem
expedient. The proposition Is made with the slncerest
honoraOly to all obligations, and With the confident
hope that the Government will accept II as
pany can safely agree to pay; In addition to
The substantial complete, and final reimburse
viii permit me 10 remind you OF saving to the
national treasury which has been Effected by tue con-
the Government for transportation OF troops ana OF
quartermaser, commissary aud ordnance stores, and
Indian supplies across those vast plains and
the mountain ranges. was very great involving an
outlay Oh many mllobs aunuap. iho saIc scl loo az
railroad companys current rate OF charges IS now
done with a saving TO the Treasury, according TO the
official statements OF the Executive Departments,
OF well nigh s2,oOoOoO annually, to say moth
ing OF the superior safety, promptitude,
ccerity and certainly with which 1t is accomplished.
Indeed il eXvggeIatiOn to cay that the Govern
ment should forfeit all 1t advanced toward the con-
structon OF the road, 1t would still realize
large annual gain from the economy II las
been enabled TO effect in the different branches
Of the public service to which l have referred.
adduce these facts, fortified they by tho report
Of the Government directors to show that the Govern
ment, after it receives rembursenens OF Its direct
pecunary advances, Will still left enduring
OF profit the Treasury and consequent relief To
the payer, the very large amount that will be an
uualy saved Dy the transportation facilities which this
great line OF railway will always afford. With great
respect,& e., SIDNEY DILLON, President U. Z. Il. r.