National Republican. (Washington City (D.C.)) 1872-1888, 1884-08-01

templated would destroy the ontire value
Of the stock, create panic completely
discrodit jay Gould, and bring to ruin
many excellent and worthy mon who
innocontly had purchased tho Company'a
securities. This latter suggestion hud
some weight, and tho storm clouds Of the
approaching crash in Wall street gave
fOrco to his apprehension Of tho financial
effect.
As q result Of his urgent entrcatics fur
thcr action WAC suspended, and May 90
sot down rs the date On which tho com
pnuy could mako It's statement
The committee hesitatod, and finally
gave tho railroad people TO understand
that they did not Wish 20 DO prOCipitate.
II guarantees should be given that 10
moro dividends would be paid, Jay Gould
loft out ~ tho controlling manager aud
tho road run, FIRST in the interest OF the
government, nnd. sccondarily, for tho
talked. of innocent stakeholder, tho
penalties would b. left in aboyauce for q
time.
This seemed to DO heavy demand TO
make of q corporation which has never
yet paid serious alton sion TO tho rogula-
tions made by congress- But the mana
gers were frightened. They agreed with
Mr.. Adams to make him president In
to Boston. aud acquiCscc IN any further
terms he might mako in order 10 paoify
tho senators
so Senator Hosr went TO Boston from
the Chicago convention. and thcrc agreed
with tho Boston directors upon four prOpo-
sitiona: o. No more dividends TO be
paid until after congress again m0ets; (n)
oil moneys due or TO become duo Cor
government transportation to he retained
in tho treasury, both for tho subsidized
and unsubsidizod parts of tho road; ~
tho company to pay forthwith into tho
treasury $7lS,sl4, being tho amount
claimed under the Thurman act for the
year 1883 a. tho check for S6D,359, so
long lying unaccoptod, to BIO taken oil
account.
This plan was submitted TO tho com.
mittoc juno II. II was accepted, but in
terms not cousoliug to tho railroad people.
resolution was adopted TO the effect
that upon these terms tho committee
would dofcr further action upon the sub
joot until congress meets again, with tho
express understanding that this action of
tho committee and of the United States
in receiving tho money aud security shall
have no eifoct on any penalty or forfeiture
or other right of the United States against
tho company or any Of its officers but
that all rights, penalties, and forfciturcs
shall stand rs If these acts had not been
done"
To this Mr.. Adams expressed his will
ingness to accedc, and, on the next day,
at New York, in compliance with the
understanding given the committee, tho
directors passed tho dividend, accepted
President Dillon's resignation, and elected
Mr.. Adams in his placo. A few days
afterward tho S7ls,0 900 was deposited with
the sub treasurer Mt Boston.
Meanwhile, in the house the Pacific rail
road committee had taken this thing up
i'll earnest. All through the spring they
struggled with IL, the railroad attorneys,
both on and or the committee, trying to
delay action, Here tho railroad mon stuck
to tho sixty years extension and tho ma
jOrity insisted on au increase in the per
cent. takon from the roads by the Thurman
act But" said Post, OF Pennsylvania,
and Cassidy, Of Nevada, what Is tho use
of that2 You cannot collect the 20 per
cent. under tho present law, and it is
nonsense to talk about getting the 30 pro-
posed by you" Phil Thompson, who was
managing the 80 per cent. bill, replied
that some time an attorney general would
be found who would execute the clear
duties of his Office. Finally, after u long
fight, no obtained n hearing in tho house.
Tho next day Thompson offered an
amendment raising to - tho per cent, to
be required from Union Pacific aud o 40
that from tho Contra. Pacific. 10 ov cry
ones astonishment i, was adopted wit h.
out a division and without vote regis
tered against IL, and the bill passed til y
same way. Why this change of front?
Tho railroad mon had boon informed OF
the senate judiciary committee agreo-
ment They knew that Thompson's bill
could got no further. They wasted no
strength, because tho bill was doomed to
be pigeon holed in the upper branch.
Mr.. Edmunds has given tho Union Pa
citlc poOplo u respite that is all. The
Juno panic is over and cannot DO invoked
again. Another session of congress will
give him time TO act, now that all tho
facts are in his POSSESSION aud the COM
pany has put itself in his power. The
Thompson bill is In his hands, and he
can put it, or almost any othur, throu gh
tho senate. Just what his plan is no one
knows exactly. one thing is sure, no
more dividends will be paid on Union
Pacific stock until tho S02, 100000 now
owing to the government is provided for.
Mr.. Edmunds only fears that the road
will be unable to pay, and SO fall into
the governments hands. To prevent that,
aud ut tho Sumo time secure evey dollar
of tho earnings for the sinking fund.- Is
his aim. lie docs not consider the stock
rs u legitimate lien. The penalties"
which he did not surrender in his temuo.
rary compromise with Mr. Adams, may
yet serve the end for which they were
inserted in the Thurman act, Judgment
is simply deferred.
These then, are tho facts. Tho Union
Pacific now owes tho government S33, go.
5l2 of subsidy bonds, on which tho inter.
est unpaid amounts to Sl9,0Jl, is9. and is
increasing mt tho rate of h million a year.
This becomes duo in dozen years. 1t has
$S7 220 900 of first mortgage bonds and
enough others to bring tho bonded debt
up to $l17,4s7. I92, with 100000 OF
stock, a total lien Of nearly S232, 000, 900
a sum sufficient to build the whole road
throo times aud to spare. Of all this all
tho stock and IL good part of tho mort.
cages have boon Illegally issued. Yet
year by year their interest has boon paid,
and not ono man in the government has
dono aught to stop It, save in the dospisod
Thurman act, now galvanized by Mr..
Edmunds
Tho road is almost bankrupt. Paral.
lellca by limos to Ogden, with thToO com
peting transcontinental lines hardly able
to earn its bonded charges, weighted with
illegal debts, 1t is staggering TO insolv
oncy. Tho earnings are falling away,
trains being taken off, country invaded
by rival lines, rates of fare and freight
falling. Competing with roads having
ono-third the debt Union Pacific has
seen its boat days, Robbed of its blood,
Mr.. Gould now seems ready ut last 10
throw aside tho wreck, provided he can
escape tho penalties affixed by law TO this
wrcckage. Tho stocks aud bonds have
been largely disposed of TO other holders;
they must suffer from tho shrinkago
which has reduced tho stock TO q third Of
its former value. Aud through all this
riot the govern ment, with tho law Oh its
aide has bean nut off and alarmed Inv nrp-