, 1885-03-07


capital. The Union Pacific now has il
the Thurman act sinking fund, bringing
less than 3 per cent interest per year
some 6, OOO, 1000. That s., 00O, 600 woult
easily construct and equip $50 miles O
railroad. Those $50 miles of railroad
would bring into the Union Pacific sys,
TEN probably ten times the net income
Of the sinking fund Investments. The
first mortgage securities, representing the
ownership Of this additional mileage,
might be deposited in the treasury, and il
at the maturity Of our loan the company
WINS unable to raise the necessary money
to pay the government off, it must take
the consequences. The government
could sell out the securities representing
the whole Union Pacific system to the
highest bidder. In all human probability
no loss would have been incurred, while an
inestimable benefit would have been con
ferred on the community which that sys-
TEN served. Such, it seems to me would
yet be The true business policy for the
government to pursue with this rom
pany. Congress might impose any re-
strictions it saw fit in regard TO
construction of auxiliary lines. II might
insist upon their securities of every de-
scription being deposited in the treasury
for a dozen years TO come before the Paci-
fc loans mature. The people in the states
and territories beyond the Missouri and
among the mountains, would have the
advantage of those lines, and thus what is
now a barren sinking, fund useful to no
one, would be converted into what seems
to me the most beneficial system Of i'm
provement which could be devised. This
plan, undoubtedly, congress has fully con-
sidered and set aside as impracticable,
therefore l do not urge it. l merely sub.
init it as the original scheme Of the diree-
tors Of the Union Pacific Railroad com
pany, and it seems to me to-day from
every conceivable point of view, a wise
scheme and one more financially sound
than any other which has been suggested.
Meanwhile it only remains for the
Union Pacific to accept such terms as are
imposed on it. When the Thurman bill
passed, the government practically took
control of this matter out ofthe company's
hands. The plan its representatives
had devised for meeting the government
obligations at maturity, was then set aside
and another devised by congress substi-
for it. The sinking fund plan was
substituted for the auxiliary railroad sys-
plan. Since then the attitude of the
company has been an expectant one. 1t
was waiting to see what rule congress in
its wisdom shall impose; and when that
rule is imposed will live up to it. If
upon a fair trial the burden exceeds the
company's strength, the directors do not
doubt that in the interest of all concerned,
congress will modify it. This, therefore,
is the view which the directors now take
Of the senate Judiciary bill In the shape
which l understand it has finally assumed.
The company is willing to accept it. and
10 loyalty live up to it to the best of its
Meanwhile it is not responsible
for it, and if, as l hope it will not be the
,ase, the burden shall be found to exceed
is strength, it will be simply for congress
say whether it proposes to take the
property or to modify the act.
There is zone other matter to
which | wish to refer. upon
which much stress has been laid in the
discussions over the different measures
proposed. Ii is a matter of some deli
,acy, but it seems to me important, and
such cases I do not see that anything
gained by not speaking out frankly, or,
if need be, bluntly. | have seen it stated,
not only in papers, but in debates in con-
gress, that practically the Union Pacific
was still managed by Mr.. Gould, and
hat | had simply been put forward by
as a igurehead in order to allay
feeling and obtain terms more
favorable than would OF herwise be given.
In justice to Gould, as well as myself, |
to state that this is in no degree the
l wa not Mr.. Gould's choice for
the position l now hold. Moreover, since
June II last, when | became president Of
the Union Pacific Railroad company, |
to be held solely responsible for
whatever has been done in the manage
ment of that company. II the con
duct of its affairs Mr.. Gould
has been consulted as the other
directors have been consulted neither
more nor less. Generally his views and
my own have conceded; where they have
not conceded, he has invariably acquiesc-
ed in my conclusions, pronerly taking
the ground that as responsibility for re-
suits rested on me, it was for me to finally
decide what course should be pursued.
1t is perhaps well it should be publicly
understood that the course in this respect
which has been pursued heretofore will
continue to be pursued Sc long as l re-
main president of the company. What
ever is done will be done because, after a
full discussion with the directors, | think
it is the best and wisest thing to be done.
If, at any time a policy is imposed upon
me byeither any single directo or a major
ity of the directors, which does not seem
to me.to be right, 1 shall forthwith make
way as president for some one else, more
in sympathy with that policy than 1.
Meanwhile, till I do 50, l assume in ad-
vance the full responsibility, if need be. to
the exclusion of every one else, for what
ever is done. Truly yours,
CHAs. F. ADAMS, Jr.. President.