Evening star. [volume] (Washington, D.C.) 1854-1972, 1875-02-11
Union Pacific Railroad.
RELATIONS BETWEEN THE CoMPASY AND
GOVERNMENT.


THE GOVERNMENT.
The following important letter was re-
! ceived at the Treasury department yesterday
afternoon:
UNION PACIFIC RAILROAD co..
NEW YORK, Feb. g, 1915. \
Hon. n. H. BrisOT, Secretary Of the Treusltry.
SIR: The existing relations between the
government and Union Pacific railroad COM
pany are such as benefit neither party, and
terd continually to the injury of both
The government in prosecution of what it
deems 10 be its just rights has instituted
regal proceedings against the company for
claims Of different origin and widely different
character, and those claims are about to
undergo or have already undergone judicial
determination. Nothing can he more dis
tasteful To This company than To have even
the appearance of resisting a Just demand of
the government. The directors, speaking
| for the stockholders. recognize and fully
appreciate the great and generous aid eN-
tended by the government to this magnif
ncent enterprise. and il is their wish TO do
everything i'm thCir power to reimburse to
| the government So far as they can and
| speedily as may be every dollar advanced
| from the national treasury. The company
| also feel very keenly the disadvantage they
incur both in popular esteem ana in pecu-
| mary resources by being in seeming
conflict with their graat benefactOr, the gov
| erument, and il is their most earnest desire
| 10 do everything they can TO establish
| such relations of mutual trust and conf
dence as will best secure the demands of
| the government, and at the same time pro-
mote the prosperity of the company. And
| by promoting the prosperity of the company
do not mean simply the enhancement of
the value of the property. but such extension
| of its uses. resources and facilities will
| most rapidly develop the great national do
main, which il tTaVcrSeS for n thousand
| miles, and | would respectfully call your
| attention to the important fact that this
| great domain cannot be developed without
| increasing in Vaiue immensely the govern
ment land along the line of the road, and in
addition increase the area Of taxable prop
| erty, a matter of vital Importance To The
whole pnnnfrC
government i'm its terms and by judicial de-
ciSion of the United States Circuit Court can
not bc enforced until the maturity of the
JOnds, which iS near the close of the present
century. The bonds are accumUlating on in
tCteSt account, also uncOiiected until the
principal S due. Principal and interest when
due Will amount to the very large aggTcgat"
of over So .GUN.uun, though the actual
amount advanced by the government
was only 81 .236.5t2. For this very large
amount the government has only a second
mortgage. and if il be allowed to accumulate
without any provision being made TO meet
IT, the company Will probably he utterly Un-
able to pay it,
At the same time il is equally manifest
that the government will be unable to collect
IL except UDOn the assumption that il will
advance the money to discharge prior mort
Cages and run the road on government ac-
count. policy which wise craftsmanship
could not advise Ey standing Still, there
fore. the company has a load of debt accu-
muIating for which no provision is made,
and he government il drifting farther ana
farther from the opportunity to secure just
return for its advances 10 90 nothing - 10
iniUre both the government ard the com pa
ny, perhaps irretrievahly To both. In this
dilemma. l venture To make a prOpOSlllon-
which offers. on the part OF the company, all
ii caa possibly do. and secures To the govern
ment a substantial return FOL its advances.
II iS a. follows:
The Union Pacific railroad company pro-
pose TO pay into the Treasury Of the United
States five hundred thousand dollars per an
mum on each first day of July, beginliiH@
with ISIS, and 10 continue this payment for
twenty years. and thereafter, on each first
day OF July, the payment shall be ~lJ0,002-
and the money so paid in shall BE- held by the
Secretary of the Treasury as a sinking fund
| TO The credit oil the t. Z. Il. X. company,
specially devoted to the extinction uI the
government mortgage. interest thereon
| 10 be rcclOned al six t") icr cent
| per aHnum- lawful money. PdSaDi2
| semi annually. and the accruing interest
each half year. 10 bc carried TO the account OF
| The sinking fund TO the credit Of the Union
| Pacific Railroad company. And this annual
| payment by the Union Pacific Railroad com
| paUy shall he continued without delay or .tr-
! faUlt until the amount To the credit OF The
| company in the hands al The Secretary Of the
! Treasury shall be equal to the iUIl amount
! al the government mortgage. .rpckOpe al = m
/ pie interest 70 same datr. The government
| lien now existing to remain a. security for
| the discharge OF this obi legation AMI To Jr
| cancelled wlen this sin king fugl thus ere
| ated shall equal the mortgage of the govern
| ment. Teckoncl Al simple interest, at which
| time said sinking fund shall br transferred
| ia and >4a(l rest in the United States. and
| this payment snail be ia full discharge of all
| obligations due from the company 10 the
| government.
Should This suggestion meet with your ap-
| pToVal, | would respectfully request. on be
| haif Of the company. that you lay the matter
! before Congress. with such favorable rccOln-
I incubation a. Nou may deem eXpedient.
! The proposition il made with the sincere
| desire on the part OF the company to respond
| most houorably to all obligations, and W! Tia
| the confident hope that the government will
! accept IL rs the very largest annual amount
| which the company can safely agree 10 pay.
| In addition to the substantial. complete
! and tinai reimbursement thus proposed by
! the company. NOu VIII permit me to remind
! YOU OF the vast saving 10 the national treasu-
| ~, which has been effected by the cOnStTUc-
| Ilon OF the Union Pacific railroad. The
/ iOImer cost TO the government for tranSpOr-
! tatiou Of troops and OF quartermasteTS' com
| MISERY and ordnance stores, and the carry
| ing OF the United States mails and of Indian
! supplies across those vast plains and over
! the mountain ranges was very great ilvolV-
| ing an outlay of many millions annually.
The same service at the raIlrO al company
current rate OF charges il now done with
saving TO the treasury, according to the Off
/ cial statements of executive departments. OF
well nigh two million of dollars (&2, ,O00, ,OJ0l
/ annually. 10 say nothing Of the superior safe
: ty, pTOnptltUde. celebrity. and certainty with
/ which il is accomplished. Indeed, it iS 10
| eXaggeration 10 say that il the government
/ should ioTieit all il advanced towards the
! construction OF the road, il would still real
| iZe large annual gain from the economy it
| has been enabled TO effect in thc different
! branches OF the public -crVicc to which |
have referred.
| adduce these facts fortified as they are by
| the report Of the government directors, to show
/ that the government, after it receives Il re-
| imbursement Of its direct pecuniaT' All
| YapceS, will still! have LETT an enduring source
! of profit 10 the treasury and conSeduent re-
| liei 10 the taxpayer in the very large amount
| that will be annually saved by the tfanSpor-
tation facilities which this great line of rail
way will always afford.
With great respect, your obdient servant,
SIDNEY DILLON.
President u. II. Il. r. Co.
ANOTHER Ice BRIDGE ACROSS THE HTD-
soN.-The New York Commercial Advertiser
of NoSierlaN afternoon gives the fnIlnXi