, 1885-03-07
lie uHiuN TAIITlG-
Three Competing Lines and
Business Falling off.
New Branches Wanted to In
crease the Revenue.
President Adams Talks Plainly
About Jay Gould.
THE UNION PACIFIC DEBT.
President Adams Addresses the
United States Senate.

80
Union Pacific Railroad company, to Sen
ator Hoar, mentioned in the senate re
port to day.
Bosros.-To Senator Hoar. Washing
ton, d. G: My DEAR Sm.-The bin Of
the senate Judiciary committee reported
by you, regulating the future payments
to be made by this company to the United
States, in the settlement Of its obliga-
tons, 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 it had been
reported to the senate. As the Union
Pacific is one Of the corporations inter
ested, it may not be out of place for me,
now that IN opportunity for considering
the measure has been afforded, to state
to you briefly as may be, the conclusions
reached IN regard to the matter from the
directors' point of view. As originally
reported, the bill was construed as COM
polling the company to make semi
annual payments amounting to $450,000
each, with increasing interest from the
first payment forward to the 10th. so
that in round numbers the payments dur
ing the irst year would have amounted to
about 5000, 900. and the payments dur
ing the Goth year would have amounted
to $500, 600. As subsequently amended
the annual payments from the beginning
were to include the interest on the entire
amount Of the unpaid debt; that is, the
payments for the first year would have
been So, 10000, which would have regu-
larry decreased at the rate Of about $780,
900 per annum as the debt was paid, until
in the Goth year the payments would have
amounted to about 5000, 900. Finally, in
the shape in which the measure is now
left, the payments, as l understand it, are
equalizel through the entire period. 50
that including the central branch they
will be about $l.s0O,000 a year. 1t is
merely necessary for me to refer to the
last two plans; that of annually decreasing
payments and that of equalized payments.
As respects the first of those two plans;
that Of the largest payments at first, ! am
obliged to say, / do not think, under the
present business conditions of the country,
the Union Pacific would be able to meet
its requirements. However it might have
been under conditions which heretofore
existed, it is notorious that neither for the
Union Pacific nor for other railroads in
the country, are the present times prosper
GUS. Business is languishing, receipts are
falling off, the future is uncertain. Nor
are these conditions adverse conditions Of
a merely passing nature. There are now
four trans continental routes in place Of
one; and the Union Pacific meets severe
competition in its local territory. 1t
remains to be seen how far the
increase of traffic will compensate
for its subdivision. Consequently the
lead which a few years ago might have
been safely assumed, is now dangerously
heavy. If you expect a horse to pull Il
load it is well to not hitch to him a load
heavier han he can pull. What is true
physically of the horse, is true financially
of the Union Pacific. From my present
knowledge Of the company's system Of
roads and existing business conditions, |
am obliged to say that the annual require
ments of %, 800, 900, on the part of the
United States, would so cripple the Union
Pacific that l should be unwilling to as
sumo any responsibility for the result. As
respects the second scheme, l am advised
that equalized payments, including those
for the central branch, would amount TO
about 81, 800, 000a year. There is, | think,
a fair and reasonable prospect that the
company could carry this burden. l do
not pretend to speak with confidence, for
even that load is a heavy one, and the
revenue of a railroad is always a-matter
of uncertainty. While the government
compells the Union Pacific to meet
competition in order to retain its
traffic, it has by its legislation, so
tied up the hands of this company, it
can not meet its competitors upon equal
terms. l can not but consider the policy
of late years pursued with this company
by the United States as economically q
faulty one. From my point Of view it is
not to the interest of either the govern
ment or the people to force the Union
Pacific to annually take these large sums
out of its quick capital and lock them up
in the overlooking treasury. The Union
Pacific serves six states and four terrific
ries. There is not one of those states and
territories which is not to-day calling foI
railway development, which, fit could be
provided, would not only afford whole
communities sorely needed business facili-
ties, but would add largely to the traffic
and income of this company. Every dol
lar, therefore, which is taken out Of oui
business annually is so much Of which
could be deployed to the development Of
the country, not only to the great advan'
tage ofthe Union Pacific, but to increase the
security of the government 50 far as the
ultimate recovery of its debt is concerned.
Each request for these additional facilities
which now reach me will have to be me
with the answer, the money which woule