The new North-west. [volume] (Deer Lodge, Mont.) 1869-1897, 1884-08-08
THE UNION PACIFIC.
How Charles Francis Adams Came to be
President

THE UNION PACIFIC.
How Charles Francis Adams Came to be
President.
New YORK, July 31.-The following is
from the Times, on the Union Pacific exhibit:
Edmunds bad more TO do with drafting the
Thurman bill than the Senator whose name
1t bears. He expected a great deal from it.
To his surprise, it was entirely dIsregarded.
The law officers of the government refused
even to attempt to execute its provisions, land
millions Of dollars were paid out in dividends
and building branch lines from the money
ordered to be paid into the Treasury. De-
termined that the government had been long
enough defed, and the laws set at naught,h he
came back to Washington last winter deter
mined to find out whether Congress or Gould
was the more powerful. Accordingly, eany
in the session he introduced q bill granting
the Central aud Union Pacific sixty years ex
tension in which to pay thier debt to the
government in 120 semi annual install lmetts,
which the commissioner of railroads had
prepared. This was referred to the judiciary
committee about the last Of February. The
committee, under the lead of Edmunds and
Garland, came TO one or two conclusions.
The first was, the Central Pacific had fairly
tried to live up to the law, but that in every
at naught, and indicated complete and most
assured indifference 10 the law. Moreover,
they had not been disturbed, and between
them and those who should have been pros
ecuting them, there existed a good under
standing.
Edmunds called the committees attention
to the disregard of the statutes which had
marked its management from the very in
ception, and sail he had no faith that any
thing would bring it to terms except exact
measures that would attack the directors
so that all public officers could not be man
aged at their will. The committee directed
him to write report. He did so, but 1t has
never reached the Senate or the public. It.
was submitted by him to the committee
who reached the conclusions that 1t pos
sessed q personal interest for 9me we'll
known financiers. 1t showed not one cent
had been paid into the treasury under its %
per cent. provision since July l, 1878, while
during the same time over ninetee, millions
have been divided In dividends. The report
closed with a resolution calling The Presi-
dents attention to these facts, and asking to
70
have executed the penalties prescribed
against the Union Pacific directors for lille
gally declaiming these dividends. The COM
mittee proceedings were being watched by
the Union Pacific. They knew every call
for information from the departments; all
that took place in the Attorney Generals Of
flee, and they had general idea of whist Ed
munds was doing within the closed doors of
the committee rooms. Senator Hoar was to
lay the report before the Senate Oh May 9th.
Or that morning Charles Francis Adams ar
rived In Washington and speedily visited the
Senate. He was formerly a director of the
Union Pacific, and recommended its stock to
the people Of Massachusetts as a safe invest
ment, on which assurance many had invest
cd. He saw Edmunds, Hoar, Ingalls, and
others, and out of respect to his urgent ap-
peals the report was deferred until the fol.
lowing day. 1t was probably the hardest
days work Adams ever did for the road. he
represented to the committee that be had no
knowledge of the facts obtained by them,
and their publication would involve inno-
cent persons in ruin, besides preciptating
trouble In Wall street. As q result of bis
entreaties further action was suspended until
May Goth. The interval was industriously
profted by in Gould's party. They saw that
a barren set off would not do. In the mean
time the Wall street crash gave them han.
die upon which to hang up the appeal for
further time. On May Goth billions argu.
ment was submitted to the committee, the
committee hesitated and finally gave the rail-
road people to understand that they did not
wish to be preciptate II guarantees should
paid, Jay Gould left out as the controlling
manager, and the road run first in the inter.
est of the Government, and secondly for the
much talked of innocent stockholders, pen.
alties to be left In allegiance for awhile. The
Gould party were glad to step into the back
ground. They agreed with Adams TO make
him president 10 the place of Dillon, trans
fer the Offices TO Boston, and acquiesce In
any further terms he might make In order to
pacify the Senators. Hoar went to Boston
and there agreed with the Boston directors
upon fosr proposition: First, no more divi-
dends should be paid until after Congress
again met; second, all moneys due or to be-
come due for Government transportation, to
be retained In the treasury both for the sub
sidized and unsubsidized parts of the road;
third, the company to pay forthwith into the
treasury s7lS,sl4, being the amount claimed
under the Thurman Act; fourth, the check
for s069,359 so long lying unaccepted, to be
taken on account. This compromise leaves
only to the directors the privilege of running
the roads. They can pay no dividends and
receive no money from the Government.
Cholera Remedies Going Up.