The semi-weekly miner. [volume] (Butte, Mont.) 1882-1886, 1885-03-11
NIGHT DISPATCHES!
Letter of Charles Francis
Adams of the U. P.
Railway.
General Grant Not 50 LII as
Represented.
Confirmation of tho PreN-
dents Cabinet.
Cleveland Signs Gen. Grants
Commission.
That Letter OF the Union Pacific.

WASHINGTON, M8rCQ D. -IQ0 lOl-
lowing is the letter OF the president
of the Union Pacific Railway Com
pany to Senator Hoar, mentioned in
the senate report to-day:
BOSTON, Mass.
To the Hon. Geo. f. Hoar, United
States Senate, Washington, d. G.
My DEAR SlR:-The bill of the
Senate Judiciary Committee reported
by YOU, regulating future payments
to he made by this company to the
United States In settlement of its OBJ
legations, has now for some days
been in my hands. As you are aware
the representatives of the company
were not consulted in regard to this
bill while it was in preparation, nOr
were they permitted to see it until 1t
had been reported to the Senate. As
the Union Pacific is one of the corpo-
rations interested it may not be out
of place for me now, that an 0ppor'
tunity for considering the measure
has been afforded, to state to you
briefly as may be the conclusions
reached in regard to it from the direc-
tors point of view.
AS originally reported the bill was
construed as compelling the company
to make semi annual payments
amounting to about $45O, 900 each,
with accrueing interest from the first
payment forward to the twelfth; so
that in round numbers the payments
during the first year would have
amounted to about 5000, 900 and pay
ments during the sixtieth year would
have amounted to about 81, 500, 900.
As subsequently, amended the annual
payments from the beginning were
to include interest on the entire
amount unpaid, that is as payments
for the first year would have been
$780, 900, which would have regu.
larly decreased at the rate of about
$50, 900 per annum as the debt wac
paid until the sixusth year the pay
ments would have amounted to but
about $9OO,OOO. Finally in the shape
in which the measure is now left
payments, as I understand 1t, are
equalized through the entire period
SO that including the central branch
they will be about 81, 800, 900 year.
1t is merely necessary for me to refer
to the two last plans, that of annually
decreasing the payments and that of
equalizin2 the payments.
AS respects the first of these two
plans, that of the largest payments
at first, 1 am Obliged to say / do not
think, under the present business
conditions of the country, the Union
Pacific would be able to meet its re-
quirements, however it might have
been under the conditions which
heretofore existed, it is not for US to
say. Neither the Union Pacific nor
other railroads in the country are at
the present time prosperous. Busi-
ness is languishing, receipts are fall
ing off, and the future Uncertain.
Nor are these conditions and ad-
verse cond itions of merely passing
nature. There are now four trans
continental routes. in the place of
one, and the Union Pacific meets
severe competition in It's most valu-
able 10 ,al territory. It remains to be
seen how far the increase of traffic
will compensate tor its divi ion
consequently the loan which q few
years ago might have been safely as
sumed, is now dangerously heavy.
If you expect horse to pull load
1t is not well to hitch to him q load
heavier than he can pull. What Is
true physically of horse is true
financially of the Union Pacific.
From my present knowledge of the
company's system of roads and ex.
isting business conditions, I ana
oh fn fhnk hA
quirements of s., SOC, 900 on the part
Of the United States would 80 cripple
the Union Pacific that I should be
unwilling to assume any RESPONSE
tiIity for the result.
As respects the second scheme I
am advised that equalized payments
including those for the central branch
would amount to about 81, 800. 900 q
year. There is, I think fair and
reasonable prospect that the company
could carry this burden. I do not
pretend to speak with conf ience for
even that load is heavy one and the
future of railroads is always q matter
of uncertainty. While the Govern
ment compels the UHion Pacific to
met competition in order to retain
its traffic it has, by its legislation. so
tied up the hands of this company 1t
cannot meet it's competitors on equal
terms. l cannot but consider the
policy of late years pursued with this
company by the United States as
economically faulty one. From my
point of view it is not the interest
either of the Government or of the
people to force the Union Pacific to
annually take these large sums out of
its quick capital and lock them up In
an overlooking national treasury.
The Union Pacific serves six states
and four territories. There is not
one of those states and territories
which is not to-day calling for rail-
way development which ii it could
be provided would not only afford
whole communities sorely needed
business facilities but would add
largely to the traffic and income of
this company. Every dollar, there
fore, which is taken out of our busf.
hess annually is so much which
could be applied to the development
Of the country not only to the great
advantage of the Union Pacific but
totncrease the security of the Govern
ment so far as the ultimate recovery
of its debt is concerned.
The Union Pacific now has in the
Thurman act a sinking fund bring
Ing less than three per cent. interest
year-sOme five million dollars.
That five millions would easily con-
sIruct and equip $50 miles of railroad.
Those $50 miles of railroad would
bring into the Union Pacific system
probably ten times the net income
OF the sinking fnnd Investments.
lhe first mortgage securities lspre-