New-York tribune., 1885-01-17
THE UNION PACIFIC AS TO LEGISLATION

Ir mas 40 MEASURE TO PRoPosE-PREsIDENT
ADAMs'S SUGGESTIONS.
WASHINGTON, Jan. 16.-ln an appendix to
report OF the Government directors OF the Union
Pacific Railroad there several letters received from
Charles f. Adams. jr. president OF The company atter
the report completed. In one or these, dated
December 20, 1884, Mr.. Adams says: Inquiry has Of
late reached me from different quarters rs to wha
the Union Pacific Railway Company now desired. or Was
cndeavoring to obtain. In the way Of legislation at
Washington. As very erroneous statements
on this head arc often met with
In the Of tho daily press It may DO we'll 10 OK
pliclty define what the position OF the company really
is, will therefore. say that the Union Pacific Railway
Company at this time has scheme In regard 10 meet
ing ts Government obligations which 1t is endesvorng
20 have incorporated law. The original policy OF
the company this matter have sndeavored To de-
scribe ia another communication Its policy was, In
brief 10 treat debt owed 10 the Government rs
would any other debt When tho debt natnrd 1t would
have TO be provided for at the peril Of the company II
IL was not provided for 1t would bo valid Hen upon the
property which would cause to pass out OF the hands
of ia oyners and into those of tho creditors with TINS
welunderstood liability impending tho schems oi the
directors to yearly invest large amounts ol surplus
earnings I'm additional railroad construction, ths assets
representing which would constitute species OF SINKING
fund In its treasury onscing In 80 iar the deot As
have also said OF all the schemes yet devised this seems
to me 90 have the most benehclont to the
country the most practical and businesske 80 far as the
corporation was concerned and that which afforded the
best security the United states NcverheeSSoohSreSs
interviewed and by tho passage OF the Thurman act made
IL practically impossible for the company to continue hs
uoicy The money which heretofore had been devoted
to railroad building was under the operation
~ tho Thurman act diverted to the
.irkinp fund This action OF Congress
having substituted new plan In place OF that OF the
company It only remained for the directors to conform
s best they could to the conditions thus prescribed ana
do whatever In their power to carry out tho Poi
icy imposed upon them. Such IL their position NJ 'nis
time They arc prepared Loyalty to conform to the terms
of tho Thurman act Meanwhile. As understand H. inc
heads of the National departments and all tho Leading
members OF Congress agree that In practical operation
the sinking fund provisions OF the thurman "c nave not
proved success This Is evident also from the TACT t''
the money turned into tho fund has failed To accumulate
at all "a 1t supposed 1t would inc Investments
provided for cannot bo made ut proht under hoso GIT
cnmstances the policy OF the company Is simply 10
y,it the action OF Congress 1t has nothing whatever
IN PROPOSE II has been Incorrectly stated that tls
.ixty-year funding bill so-callcd) advocated Dy kiE
road Commissioner Armstrong emanhted from ths com
pany. On the contrary, tho representatives oi thc o
Pacific were consulted In the preparation OF that
hill neither do they now seek to secure It's passage
am free to say that SHOULD such measure as that
known as the Thompson bil which passed the House OF
during tho last session OF Congress- be-
come "A law do not from such examination as nave
been able To make. see how tho company can t ~ W
its requirements and make any return To ts stockoders
No railroad he prosperous the whole net Income OF
which IL absorbed In fixed charges ana diVidehs con-
siderable part OF its surplus incomeand III e case Oh
the Union Pacific that would amount to very aiE SUN
must annually be put into the properly, II ths
property Is 10 be kept up to the standard
therefore should regard the passage oi s ac as mos'
not only for the stockholders OF tho com
many, but for tho bOndhOders also. as well as Tor ho
United States. think IL would have strong tenuehoyI
which have already In another letter descrDed To seho
the stock into the hands or those who wOud inanhEo %
property simply for what they could get out OF H. anu
without rogard for It's preservation hn Wen hwhro
that may be wholly wrong in apprchendny suen q re-
suit Nevertheless give II ~ my best Judgment nP 10
this time Should the siXtyyear funding piii now peloro
the senate become law. 1 am under the impression ION
that it would not impose obligation greater hh no
property could bear IL would absorb annhaiy iaBs
sum OF money which, In my opinion. would In tne gen
eral interest be much better applied To
Could have my way, therefore, acting Tor wnt S
to he the benefit OF both the company anu th .ho
Government bstcsd Of using this money IN a,m .no
way proposed, l would, under any restra.,"ns'
which Congress might Impose. apply n to the consruo
ton OF additional lines railway tho hrstmorgase
securities OF which should be placed IN the hands OF s
Government offset TO our maturing ueDt IN .n.s
way. my belief the most benefit w.nid DO secured
the TO the people nhabiting the Interior
OF the country and ultimately 70 n9 That tSs
States II would DO such o. measure rs ,his tnn' ,no
company would adv"cate. did II now aovocs'e "nS