New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-02-27
THE PACIFIC RAILROADS.
HORACE WHITE On PRO RATING
AN ARGUMENT BEFORE THE HOUSE COMMITTEE on
PACIFIC RAILROADS.


by TELEGRAPH To THE TRIBUNE.l
WASHINGTON. Feb. 26.-Mr. Horace Nmte, III
behalf OF himself and other bondholdeTa al the
Kansas Pacific Railway, made an argument to-day
before the House Committee Oh the Pacific Kali
road, in favor of the bill requiring the Union Pacific
Railroad Company and its branches to pro rate
with the Kansas Pacific Company.
He said that if il were in any sense hardship
for the Union Pacific TO operate its roads required
by it's charter in connection with the Kansas Pachc
without any discrimination against the latter, THIS
hardship had been paid for by the Government at
the time it imposed the obligation. The Govern
ment hal Given to the Union Pacific Company not
only large land grant but had gwen it the use
of the bond subsidy for thirty years without
interest and every six months the pubhc treasury
paid out rs o 900 on account OF the Union Racine
subsidy bonds. The interest on these several pay
ments, of which there would he tiity-nine IN all,
amounted 10 about $40, OOO, 900. This was clear
gift even suppoSIng that theUnion Pacific Company
should pay its Government Indebtedness III iuii at
maturity The whole road west of Cheyenne never
cost $43 900 900, or anything like that sum. Con-
sequently, ii was absurd Tor the Union Pacific Com
pany to plead the greater cost of that section OF Its
road as Il reason for Noncompliance with the law,
when that cost had been really borne by the Gov
eminent and not By the COMPANY
Nh White said that the law requires the Union
Pacific Company and the branches named in the
acts of ,G2 and sci, to be operated as one con-
tinuous line without any discrimination of any kind
in favor of one or the other. lie continued:
What it to operate road as conrnuou, linei Ihe
Supreme Court furuishcd definition IN The omana
Bridge case, which held hat under theAcS OF $50
and 1851 the Union Pacific Company must operate iiS
bridge as part of its continuous line of road without
recurring passengers TO change cars "lth"u relung
freight 10 break hnlk ana WHOM cidER moe "i r
portion of The line than upon another portion rae
court II the company had acquired The Hght 10
charge tolls on the bridge n"h "Lcn POM no oIl i
AprCsscG. 1t was ny virtue OF Tue Ht"OI pIIssT
Act 1871. As there had boon no special net of 1871
any other year authorizing me Union l.c.nc oip.i
charge higher rates west of Cheyenne thHl rh' ~
Cheyenne, the definition OF Onlnuous line furnished
by The supreme Court required ING ciUn f1'n. . o"
plny TO operate II; road ihIogaOHt lls ch!c a.
The Union PGcifc company claimed that Il had the
charges al Cheyenne. alleging ilat any other course
would result indirectly in discrimination against them
selves But law says, there snail not be any dis
elimination Of any kind" They wish YOU to read the
law viii an amendment Of Their own. They wish il 10
De read thus: There shall uot Ice any Discrimination
OF any kind, unless discrimination results indirectly
from f1ilure 10 decrnnae IN which ease there shall
be as di elimination you please" They say the
man he eastern halt and hence they ought 90 be al
owcc to discriminate Eut when you ask them II they
merely want 90 be compensated for this Ic-cd cNtla
cost OF olratig they say they TO be allowed to
charge Tor through freight and passengers arriving at
Cheyennr the Kansas Pacific road the proportion OF
their total earnings which they clam to earn on the
west end Of tn road that IS II they claim thai two
thirds or thleelourths Of their whole earnings made
on the division OF Cheyenne, they are 10 be allowed 10
make q sunlar extra charge on paascnEts and freight
arriving AZ Cheyenne via Denver Ills Is sOStLiS 50
comiletrly different iroS thcH ciaim 10 Ds COM com,
Of Cheyenne That all ihcir a,,.Itons, a toa,,
tie record for after you have allowed Ia, IA iIs amount
they still unsati'ted aud want Inoie-ho" ilueh
more there way determine, because the rropu-
ton Of their lOt earnings which th'y iCaAZe from ,Htr
western division u mere matter OF bookkeeping. me!
ennc and charge double rate from Cheyenne to pTucn
The Clam they sci up IS not ainehaOc To rules 81 .cI
The statement hat the western half Of the road Is
more Icusyc operate than the eastern hall oL0u!d
be received WIN '1ttAr oii'loA' An ,".. IN, AZ
81 their ties are obtained on tue western hai 1
e!r roads and hauled from 700 20 800 miles eastward
SO that The coal they burn n their shops and locomotives
inside ne corporate limits OF Omaha comes from Bitter
Creek. huudIcGo IT miles west Of Cheyenne ana Tue TIES
Evanston the eastern b1cder Of Utah Territory Now,
ing exvenses Of railroad, and the presumption must be
thai that section OF the Union Pachc road "hirh l.
cheaper To- operate than section which Eg- neither fuel
ties hut must be supplied by hauling nom great dis
At ali events. nothing should be taken f9r granted
upon this point hut the Whole argument ~ IN, mon
Pacific ColanY he said, requires ~ 10 read the LAW
thus There slal be no discrimination OF any hnd
unless some part Of your road ter5I ihan ,p1 ot'
part" This j. an Interpretation. But whether II DE
hardship TO the Union Pacific Company or not 10 operate
its road III connection "lih We h!huehea rs on
recent akcn az the tilne. HE Union PJciho Company
accetd Tho several gifts oi Congress under the several
acts OF Congress
MIR. White argued tina the President Of the United
States should b. charged with the execution OF these
laws. since the remedies afforded 10 private persons
were not etlcctual. They had not been ciieciuai
enough to secure the operation OF the Omaha bridge
as a part Of the continuous line of road, and they
would not be III this lie concluded as follows;
Looking al the suffice, the broad hight Of the Pacific
Railroad legislation, looking at IA" great tus tncc
created and the vast sUna distursrd iioih me ubc
and tie Government IN these hghNayn, iiSis S"cHDy
guaranteed ana abaHdany paid Tor; IOOhihS at thc III
suicency nadeQulcy of tine remedies Afforded 10
private persons SUITS 1Ur andaInhs ana at inc power
Of great corporations TO harass aud worry ndiVuutS
looking al ali these things and keeping ~ mnd the fdct
that Congress the power Of legislation over
these companies expressly 10 Keep them III harmony
SAY this maniicsly calling for Executive seton.
believe You will never hear The last Of this grievance
until you have Executive action.
TIE HORRORS or VAR