National Republican., 1885-03-07
THE UNION PACIFIC DEBT.

President Adams Presents n Plan for
Using the Sinking Fund In Com
Htruction.
Mr.. Hoar laid before the senate yester-
the president of tho Union Pacific rail-
road. which hc asked might be printed
for information. 1t was so ordered. Mr.
Adams's letter discusses at great 10 myth
the bill of the senate judiciary commit
tee reported by Mr.. Hoar, regulating the
future payments TO be made by the Union
Pacific Railway company. aud ia dated
Feb. o. Ho says the payments provided
for in the first draft of the bill were so
graded that the first year SD50,000, and
the sixteth year $2,500000 would have
been required, the order being then re-
versod. aud finally the payments equal
lied so that 81, 10000 per annum would
be called for. The second plan would not
be feasible in the present condition of
any of the Pacific railroads. An annual
payment of $2,500,000 would so cripple
the company that Mr. Adams would not
be willing to assume any responsibility
for the result, though there Is fair and
reasonable prospect that II could carry
81, 800, 900, as provided In the last plan.
HE CR1TiCISES THE POLICY
of the government. There is not" he
says, "one Of those states and territories
which is not to-day calling for railroad
development which if II could be pro-
vided would not only afford whole COM
munitics sorely needed business facilities,
but would add largely TO the traffic and
the income Of this company.
Every dollar of money, therefore,
which is taken out OF our business annu-
ally is so much which could be applied to
the development of the country, not only
to tho great advantage Of the Union Pa
cific, but to the increase Of the security
of tho government so far as the ultimate
recovery OF its debt Is concerned.
Each request for these additional facil-
| tiles which now reaches me will have to
be met with the answer that the money
which would have sutliced TO supply II
has been paid into the national treasury.
THE GOVERNMENT HAS TAKEN
from us and the communities We servo
just so much fructifying capital"
Mr.. Adams proposes that tho IS, 00o,0 ,00C
now held by tho United States sinking
fund bo put into additional facilities, the
$50 miles it would construct yielding ton
times the income the 3 per cent. bonds do
Tho first mortgage securities representa- 8
the ownership of this additional milesg G
might be deposited in tho treasury. and
If ut at tho maturity Of our loan tho com
pany was unable to raise the necess ary
money to pay the government Of,
1T MUST TAKE THE CONSEQUENCES.
Meantime the company will endeavor to
live up to tho rules imposed by congress
If upon fair trial the burden exceeds the
companys strength, the directors do no
doubt that in the interest ofall concerned
congress will modify it, This, therefore
is the view which the directors now take
of tho senate judiciary bill in the shap
which Mr.. Adams understood it hat
finally assumed.
THE COMPANY IS WILLING
to accept It, and to loyalty live up to
TO tho best of its ability. Meanwhile,
he adds, "it is not responsible for it, an
if, as hope will not be the case, the bur
den shall be found to exceed its strength
it will be simply for congress to sa
whether IL proposes to take the propert
or to modify the act"
Tho virtual control by Mr.. Gould of tn
Union Pacific is denounced most emphati
cally. "In the conduct of its affairs" Nj
! Adams adds, "Mr. Gould has been cor
suited. as other directors have been cor
suited;
NEITHER MORE NOR LESS.
Generally his views and my own ha,
coincided. Where they have not coincide
he has invariably acquiesced in my col
illusions, properly taking the ground tina
Q as the responsibility for results rested Q
Il me, it was for me to finally decide whit
b course should be pursued"