New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-12-20
THE PACIFIC RAILROADS.
,RGUMENT BEFORE ArroRNEY-GENEEAL DEVENs-
WHAT THE KANSAS PACIFIC COMPLAINS OF.
IBY TELEGRAPH TO TIE TRGBUGE.l

,pcrNENT BEFORE ATTORNEY GENERAL DtNENs-
WHAT THE KANSAS PACIFIC COMPLAINS or
lBY TELEGRAPH TO THE TRIBUNE.l
WASHINGTON, Dec 19.-Arguments were begun
in the presence of the Acknowledgement to-day by
fine representatives Of the Pacific Railroad COmpa-
mics on the question raised by the Chaiee Resolu-
ton. which inquiries whether the Union Pacific Rail
road Company has violated the law 10y unjustly DIS
terminating against any of its branches. Mr. Sid
nev Dillon president of the Union Pacific, Samuel
Shellabarger, A. j. Poppleton, of Omaha, and MI
Storrs, of Ncw-York, represented the Union Pacihc'
Mr.. A. H. Holmes, of New-York, the Kansas Pacihc'
and Mr.. J. ST. Woolworth, of Omaha, the Bur
Gugton branch.
some preliminary remarks We're first made as 10
the scope Of the hearing. The counsel for the Union
Pacific Company suggested that as the Kansas IA
cfc was the accuser it should first be heard Inc
argument of Mr.. Holmes for the Kansas Pacific was
then made occupying the greater part OF the time'
He was followed by Judge Shollabarger' who only
began an argument in behalf Of the Union Pacllc
Company.
brief outline Of the case presented by the conn
sci Of the Kansas Pacific is given herewith. The
points involved are:
First-What are the rights Of the public and the
Government and what are the requirements OF the
act OF Congress IN relation to the operation and
use of the Union Pacific Railroad ard ITS branches
Sccondly-Nhat are the rights and duties Of the
Union Pacific Railroad and branches between them
selves in relation TO the operation and use OF the
respective road
TirdIy-Are the public. the Government and the
several roads IN the enjoyment of their respective
rights. and are the several roads complying with
the requirement of said act of Congress in regard
to the operation and use Of said roads
FowHy-What authority, if any, is vested in
the President under this Act of Congress which
enables him to enforce their execution in this
respecti
F3nbIg--If upon investigation. it shall be found
that vested rights Of the public, the Government, or
Of any of the roads of the system as well as the re-
ouirements Of the Act of Congress are beng Vo-
lated then is further legislation necessary or expe-
dent o enable the Executive to compel "a compliance
vitl the requirements Of this Act, and this in sum-
mary manncrf
Mr.. Holmes, IN behalf of the Kansas Pacific rs
serted that the Union Pacific has constantly VIC
lated the law to the injury of the road he repre-
sentcd. An historical resume was given, the pur-
pose of which was to show that the governing idea
Of CONGRESS in granting aid 10 these companies, was
10 secure a national road, beginning on the
huudreth meridian, and going westward to
the point Of junction with the Central
PaciGc Railroad Of California, with an
Iowa branch and a Kansas branch, the two
branches to enjoy the same privileges. The com
mon expectation az the time the enterprise was first
bfoac.ed, Mr.. Holmes said, was that the Kansas
Company by reason Of Its facilities Of commumca-
ton with the East would become the Union Paclhc
Railroad Company, and it was for this reason
that tho Union Pacific Company was not merely
authorized to build the Iowa branch, but
was required to do 50 at certain rate,
Of speed under heavy penalties. The counsel forthe
Kansas Pacific asserted that the Union Pacific Com
many since the decision in the Omaha Bridge case,
Las disreCarded the mandamus Of the Court The
Kansas Pacific Company was represented rs depend
ing upon earning capacity to pay ITS
Indebtedness to the Government but having
been cut off from its rghGul share OF the
overland traffic by the Determinations OF
the Union Pacific Company, 1t has been unable
10 DAY the interest its first mortgage bonds, and
is at the present time in the hands of receivers and
threatened with foreclosure. Mr.. Holmes said that
The company is now. III arrears with tho first
mortgage interest 20 the amount Of S3j47049, and
is threatened with still further embarrassment by the
hostile action Of the Union Pacific Company, which
recently built a branch road into Colorado for the
purpose, apparently OF diyertng traffic IL Is a
question of the first moment To the Government, he
sud whether it will allow its own security as sec
oud mortgage of the Kansas Pacific Railroad 10 be
impaired. or lost through the refusal of the Union
Pacific Company TO obey plain requirement of its
charter.
The attitude Of the Union Pacific was character
lied by Nj. Holmes as national scandal Tie
argued that the determinations complained of are
Iractioed against the Government as well against
private shippers Of freight and cited Of
tho transportation of troops to show that the Gov
oyu,nent has been charged cents per mile per
man, while the regular through rate is only 5.22
cents per mile. In the transportation Of one
detachment Of troops this discrimination. he said,
amounted 10 1892. The discrimination repeats
itself on the Central Pacific Mr. Holmes
plcted his argument with the assertion that the
Government alone possesses adequate power to COM
pei the Union Pacific Company to operate its road
as required by law and that Congress has the power
to repeal the charter.
Sir. shellabaIgeTs argument in behalf of the
Ohon Pacific Company proceeded far enough
70 slow that his position is, that the high
iAVeS charged from Cheyenne, West, are made
ccssary on account Of the increased cost OF tho con-
suucton and operation of the road and that if the
same rates were to be charged from Cheyenne,
west as are charged from Cheyenne. East it would
NC fulnous TO the Union Pacific
The DANGER IN THE NORTHWEST.
CITING BCLIs sAvAGEs SCOUTING ACROSS THE BOR-
DER-A FORT NEEDED IN THAT REGION.
TnT VOL pu TIN