The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-05-17
THE UNION PACIFIC DEBT.
The Desperate Gnme which Jay Gould IL now
Playing.

To THE EDITOR OF THE SuN-Sir: 1t
appears more clearly from day to day that Jay
Gould Is using every device to induce the Gov
eminent to accept some one-slded com promise
In satisfaction OF It's immense and just claim
for cash advanced to aid In the construction OF
the Union Pacific Railroad. The interests in
volved are so great that great expenditure
Of time and money by Gould must be ex-
pected, and 1t Is safe to cay that he will
sickle at no methods which will insure the
transfer of the t77OO0,0O0, which the rail
road will owe the Government In 1895, to his
owG pocket. Ever since he obtained control Of
the road bya purchase Of the majority OF its
stock, he has been engaged In manipulating
political and financial wires so that the na'ion
may lose the entire amount, and that by acoup
dHdt he may feplenish his Golfers toy the acqu-
sitiOn OF that Immense sum. The success oil his
scheme In 40 injurIng Pacific Mail In Congress
In the winter anu spring Of 1915 that It's stock
fell into his hands st n low figure. furnished
basis upon witch he could bull Union Paciho
stock. and obtain loans upon II from parties
vino believed that II would ultimately be classed
among the great dividend stocks of " all street.
His first movement In Congress W As successful. as
II endOied him to charge exorbitant rates Tor
the Il nspnrt ti,'n Of nass-ngers and irelgnt
from New York To San Francisco. Upon the In
creased receipts resulting from the formation
Of monopoly, he was enabled to begin the pay
ment OF eight per cent. dividends uDon Union
Pacific stock. He made no secret Of his delight at
hts success In turning Congress into stock too-
bing machine; ana having gained hts nrst polnt,oe
Is now trying the second ana more IMPORTANT one
OF beating the Government cut of The vast loan
which II made to the road and upon which 1t
will be Obliged to pay interest for thirty years.
or course he would add. II successful. sTIVO,O0
to his private fortune, less the amounts OF
money which he might expend In substituting
the press, paying the losses OF his newspaper,
the Tribune, aud Influencing legislation.
His confidence III his ability TO manipulate the
present Congress- has, however, been greatly
shaken by the action OF the Judiciary Commit
tee Of tue House. which has reported against
the acceptance OF n scheme proposed by which
the Uniop Pacific lands should be transferred
back the Governm ent at $3.50 per acre. Not only
was this first proposition declined. but second
one Of ne rly the same nature. couched In AFRO
giant terms. by sidney DILLON, stool pigeon No:
2 Of Jay Gould, was treated as the original had
been.
uould is greatly disturbed over this singular
action of the Judiciary Committee, which Is in-
comprehensive to him and he begins ~ oistrust
the ability OF the agents who were sent to WASH
ingion with Instructions TO carry the measure
through at all hazards.
and indignant during the next few weeks tnan
he has been under the developments OF those
Just uast, N certain parties disclose Information
In their possessiun, and which they Intend TO lay
before the proper Congressional committees. IL
is doubtful, II this testimony IL given, whether
general Investigation into the erairs of the
linton Pacific Railroad can be suppressed. and
the parties who are now managing tue corpora
ton know oest whether they can explain away
| the resulting exposures. Dillon ana Ham will
| then ind out exactly where the missing bonds
| OF the Union Pacific Railroad went 10, and who
| divided up the money which was obtained for
them. The dissipation Of the mystery VIII be
great satisfaction 20 everybody In the Offices and
| also TO the Government. blaine, the wealthy
patriot Of Maine tsince 1869, will mud out whether
| the $4,000 which the Union Pacific Railroad
loaned on rotten bonds went into his pockets OF
| those of one Of his guileless constituents. His
| opularity. according to the Tribune, is 90 great
| that IL might he judcious for hun TO De mol
| capped In hts race for tue Presidency.
| Then the Union Pacific mana9efs might learn
for sss o. the uSon
| lands back to the Government at $3.50 per acre
| what arrangements were made Tor the pro-
| dependent upon its success, and what propo.
| sitions were authorized to be made In Washing
| ton to parties Of position and influence. The
| working arrangement which exists between tbs
| Central and uuion Pacific Railroads for the
manipulation OF Congressional legislation car
| be brought to light, aud the proportion OF ex
pense which Is to be borne by Gould aud b!
| HUNTINGTON ascertained.
| II Is said That Gould IL aware OF his danger
and that he Is working adrotly To prevent th'
| parties who possess tue informstion from ap
onlv by spiriting them away from the country
| and II Is doubtful whether they would DO will
ing to go, after their open declarations as TO tn
nature OF their testimony aud their Willingness
to give II.
The truth Of the matter is that Gould is play
ing desperate game against tue entire nation
Heretofore his stock operations have been to
great extent confined in their resulting profit
or losses To Wall street. and the scope OF hi
wire pulling has been compassed by State limit
| Now, instead OF dickerinR with Legislatures, h
Is trying to drive a ono-sided bargain with Con
| kIcos. ihHbcod W iot sho boo.ake Va
bill to become a law by the signature of a Coy
ernor, the assent Of ne President must be OF
tanned. Instead of aiming to hoodwink the pee
pie OF one State. he is attempting to plumber IN
| en- ire population Of all the States anu instea
Of local, II successful, II will be a nations
| steal. Tue tremendous capital OF both the Ger
trail and Union Pacific Railroads Is at the bac
| Of this scheme, and millions of dollars,
| Is announced, will be expended to defes
! legislation antagonistic to. and to suppoI
that fayorlng, the interests Of the Paci1
railroads. Understanding the danger OF an
bill being vetoed by the President,
no legislation favorable to the Pacific raj
roads Is accomplished this year, the sc
lection and support OF Presidsntia
candidate has been undertaken by ia
Gould and his adherents. IL would he NJ
reasonable to expect them to support any perso
opposed to their schemes, or upon whom the
do not possess some bold sufficient to preveu
him from kicking in the traces. The 7rfhr.,
owned by Gould, loudly extols the vi.,ues
James G. Blaine Inc young edlto-- JAy Gouid
stool pigeon, appears in prono with Blaiu
at the Centennial Exhit zion in Philadelphi
"Brds Of feather lock together"
| Now that a. sse investigations into the aYaiI
OF the P'sinc railroads are about to begin, Wa
stree. and the public generally are ANXIOUS
and out the whole truth about these corpoTi
| tons. IL may safely be predicted that, " IN
inquiry Is searching, great deal OF interestir
aud valuable Information Will be ootdine
which may be Of advantage TO the Governmel
ia determining the terms upon which II vi
settle with Jay Gould. SrIRABour.
The President and the Poet,