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

Deal-SenaiOr Eimuuds as an Instrument
Of Justicc-Thc Wall street Sharpcrs ut Ills
Fect-llacy Reading.
The New York Times gave up its first
page yesterday 10 history Of tho Union
Pacific road in its relations with tho gov
eminent IL gives what purp0rts TO DO
tho inside story of the proceedings in con.
grossional committees last wlntor aud the
causes that impellcd Sidney Dillon to
resign aud put Charles Francis Adams in
control of tho great corporation. Whether
the story told in the Times is strictly cor.
roct or not, II is very interesting reading.
The article gives n history of tho iaoth.
DDS under which tho road was constructed
and operated until tho passage Of tho
Thurman law, aud thon shows how the
Union Pacific management failed TO pay
the slightest attention 10 the provisions
of that law Concerning this 10 says;
THE protgNt given by tho CompsnS'
for not complying with the Thurman act
has been based on claim for extra com
ponsetion for carrying tho mails and for
transportation over tho amount allowed
by tho government. This suit has been
going Oh without approciablo results since
Jan. /, 1873 Tho company thinks IL
should have over S3,O0O,00O thus paid to
1t, and on this refused to pay tho demands
Of the Thurman act. explicit Ms thoy
wero. Thls oxcusu suiliced until mon
really in earnest took hold, and then the
quiCkness with which this defense was
abandoned showed how uutouable 10 was.
Nothing otherwise would have prevented
tho company from always having a claim
against tho government and oil Obliging
attorney general from making the sink
| ing fund requirements only an offset TO
It,"
Tho real point of interest in the article
| il its recital of transactions alleged to
! have taken place in congress last winter.
which resulted in bringing the Could
| Dillon crowd TO tho feet of Senator
| Edmunds in-abioct submission to all his
! demands in bohalf of the government
| Tho essential parts Of this feature OF tho
/ article are hore given:
George j.. Edmunds had more TO do
with drafting the Thurman bill than the
senator whose namo il bears. IIo OK.
pcctcd a great deal from IL, To his
surprise it was entirely disrcgardod, tho
| law officers of the government had RS.
fused to even attompt to execute it's pro.
visions, and millions of dollars were
being paid out in dividends and building
! branch limos from the money ordered TO
be paid into the treasury, Determined
that the government had been long
enough doiicd and tho law SGT Of nanght,
he came back to Washington last winter
determined to find out whether congress-
or Mr.. Gould was moro powerful, Accord.
ingly, carly in the session, he introduced
the bill granting tho Central and Union
Pacihcsixty years extension in which TO
pay their debt to tho government in l2O
scmi-annual installmOnts. which the
commissioner of railroads had prepared
This opched up tho entire subject il was
referred TO the judiciary committee.
About tho last of February tho com
mittoo, under the load of Messrs Ed
munds and Garland, came TO one or two
conclusions. Tho first was that the Cen.
trail Pacific had fairly tried TO live IN To
tho law, but that in overy respect the
+ Union Pacific managers had set IL Mt
u..ught, and indicated q complete and
mosL assured Indifference to tho law.
| With u. at settled, tho first stop was taken
April 20. Mr. Garland reported the sixty
| years extension bill, applying to tho Cen.
trail Pacific alone. It was unnoticed at tho
| time, but this suggested that tho commit.
tee had determined to mako distinction
between these two roads, one of which
had obeyed tho law and tho othor had not
Mr.. Edmunds was full of the subject. and
the committee directed him 20 write a
report. He did so, but il has mover reached
tho senate nor tho public.
Mr.. Edmunds's/ report was not % long
ono, but Il reached conclusions that pos.
sessod a personal interest for some well.
/
review of the government aid to the
Union Pacific road it went on TO discuss
tho need. constitutionality. and provisions
of tho Thurman net. These plain pro.
visions arc reoitcd admitting of no
oouivocation nor double meaning. That
not one cent had been paid into tho
treasury under its 2j per cent, provision
since July |, 1873, was brought out. while
during the same time over $40 600 900 las
been divided i'm dividends. And this with
section six of the Thurman net providing
that no "diyidond shall BIO voted. made.
or paid for or to any tockhOlder when
tho compnny shall bc in default in ro.
speot TO the payment of the sums re.
ouirod Az aforesaid 10 be paid into said
sinking fund"
Tho report closed with n resolution
calling the Presidents attention to those
facts. and asking him to order tho attor.
nov general to proceed to have executed
the ponnlties proscribed against the Union
pncific directors for Illegally declaring
these dividends, viz; ANY officer who
shall vote. declare. make. or NV. and any
stockholdor who shall receive any such
dividnndi shall be liable 10 tho United
states for the amount thereof which,
when recovered. shall DO pnid into the
sinking fund. And every such officer
ncrson' or stakeholder who shall know.
inply vote. declare. or nav such dividend
shnli bo doomed guilty of "A mislemoanor
md on conviction thereof shall be nun.
ishod by [iucSnot exceeding $1,000
and Nv imprisonment moi oxcoedino
ono yGar. That was the resolution of
tho senate judiciary committee,
nnJ had IN aver reached tho SENATE thnt