The Abilene reflector. [volume] (Abilene, Kan.) 1883-1888, 1884-08-07
THE Union PACIFIC,

How the Giant Corporation Was Brohghf
TO Its Knees by Congressional Action
Which Threatened tn Reveal its Skeleton
The Closet Door Is Not Locked, However.
NEW YORK, July 81.
The Times this morning prints a long
Washington dispatch giving history Of
the Union Pacific legislation to secure the
payment of the Goyernmentdues. Itgives
Mr.. Edmunds the credit of having had
more to do with drafting the Thurman
bill than Senator Thurman, and says that
last winter his bill calling for semi-an-
pual payments by the company, to the
Government brought Gould to Edmund'9
feet and Jed to the hasty substitution of
Chas. Francis Adams, Jr., for Mr.. Dillon
as the President of the road. Tse propo-
sition which the directors agreed to was
as follows:
First-No more dividends to be paid
until after Congress again meets.
Second-All moneys due for Govern
ment transportation to be retained in the
Treasury.
Third-The company to pay forthwith
Into the Treasury, s7lS.Sl4, the amount
Claimed under the Thurman act for 1888.
The surrender involved in these prop
ositions was wonderful. For the first
time since its incorporation the company
was brought to terms. This plan was
submitted to the committee June II. 1t
was accepted but in terms not consoling
to the Railroad people.
resolution was adopted that
upon these terms the committee
would defer further action on the SUBJ
ject until Congress meets again. The
directors passed the dividend, accepted
Dillon's resignation, and elected Adams
in his place. The s7lS,000 was deposited
with the sub-treasurer at Boston. 1t was
strange proceeding. A Senate CON-
mittee is not authorized to enforce laws
nor to make agreements with corpora
tions whereby they promise not TO act
upon any subject. The Union Pacific,
unders ordinary circumstances, would
have said to Mr.. EdmuudS: "What
authority have you? We can only be
reached by the courts" That would
have been a safe answer to make, con-
sidering how easily courts and law
officers have treated the Union
Pacific. Instead of that Mr.. Edmunds
lays down terms and the rail-
road yields what no law compels
1t to surrender; places in the Treasury
nearly million dollars, and only pro.
cures in return Mr.. Edmunds' agree
ment to keep his hands of for five
months. Would the railroad people have
surrendered so completely unless they
knew they were at some ones mercy?
Meanwhile, in the House the Pacific Rail-
road Committee had taken this thing up
in earnest. All through the Spring they
struggled against delays caused by the
railroad company's attorneys on and off
the committee. They suddenly found
opposition withdrawn, and the House bill
was allowed to pass without dissenting
vote, because by the Senate committees
agreement it was certain to be killed in
the committee when the bill reached the
Senate. Van Wyck moved its reference to
the Railroad Committee, on the ground
that the Judiciary Committee had entered
into an agreement with the Union Pacific,
which debarred it from acting. Edmunds
AMI Hoar defended the committee on the
ground that its action had averted panic
III w Ill STREET., WHICH WOulQ nave UScu
caused by the true condition of the road
becoming known, unaccompanied by the
postponement OF Government action.
Finally, Van Wyck consents to the refer
ence to the Judiciary Committee, and it
was not alluded to during the remaining
two weeks of the session. Just what
MIR. Edmunds intends TO do with the bill
next session, no one knows. The COM
pany has put itself in his power. He
only fears it will be unable to pay and
will into the Governments hands.
To prevent this is his aim,
while securing payments to the sinking
fund. He does not consider the stock a
legitimate lien. The company owes al
together $685., 200 900, which sum would
build three such roads, yet yearly the in
terest on its stock and bonds has been
paid, and no man in the Government ex-
cept Thurman aud Edmunds has taken
step to prevent it; despite the fact,
too, that much of the stock was illegally
issued. The company's earnings are de-
creasing through competition, and
Gould seems willing to throw the wreck
aside provided he can escape legal penal
ties for the failure to pay the Govern
ment. Much of the stock has been got
rid of by its former holders already.
This is in brief the history of the case.
The strange actions of certain public
men in connection Herewith will make
even more suggestive reading when writ
ten up.