New-York tribune., 1885-03-07
"A PLEA FOR UNION PACIFIC.
pars,nENr ADAMS WRITES TO Mr.. HoAR.
,ur THURMAN SINKING FUND POLICY AN UN"iSh
oSE--A PERSONAL STATEMENT.

oNE-A PERSONAL STATEMENT.
WARRINGTON, March Elm the Senate TO-
Saw Mr. Hoar had read letter addressed to mmsen pS
President Adams, Of the Uuion Pacinc Raro"u Oo.1
nany In the letter, which is dated FEBRUARY ., vi
Adams says: "The bill OF the Senate Juiciaf' Oou-
mttee reported by you regulating tnc i"'u'o p' A.
20 be made by this company to the Untea S'a'os ="
a,t,.uent Of its has now for some DAYS oeo
I'm my hands As you aware the representatives y,
the company not consulted In regaro W '"o M
while 1t was in preparation, nor were they Per"tV.1
20 see It until it reported to the Senate as
the Union Pacific is the corporations interesteu
may not be out OF place for noy that an opportunity
FIR considering the measure been Afforded 10 stao
To YOU as briefly as may the conclusions reaoneu " 10
gard to IT from the directors point OF view. As ors
reported the bill was consrueda as compelling tne eop!
TO make sem-annua payments amounting 10 apou'
$3.50 900 each with increasing interest," roh 'uo W
nav uent to the one-hundred 81
that in round numbers the payments during the
would have amounted to about S9oO,ooo' ana 'ne Pa!
ments during the sxteth year would nave ainouou W
about 50 100000 As subsequently, amended the IN
nua payments from the beginning were to lncuue ih
terest on the entire Of the unpaid debt; that S
the payments for the first year would nave oeeh
So 100000 which would have regularly decreaseo al
the rate of about $4,000 per annum as the oept wa"
paid until in the sixth year the payments woun nave
amounted to but about 100000. Finally, III tue shap
fn which the measure is left, the payments as
understand it, are equazed through the entire pefou
an that including the central branch they VIII
be about 81. 100000 year. It's merely neoeS.'y
for me 10 refer to the two last piahs' '"a'
of annually decreasing payments, and that OF eauaAo
payments respects the first OF these Two pans tna
OF the largest payments at rst am obliged to say tha
do not think under present business CONDITIONS o
the country the Union Pacific would be able to meet lts
reouirements However 1t might have Deeh uhder coh
dtons which have heretofore existed 1t is notorious
that neither for Union Pacific nor Tor oher raiirou7
in the country, the present times prosperous
ness is anguishng, receipts falling of ana the 1u'ure u
certain Nor are these conditions adverse conditions oi
merely passing nature. There are now four uahscon
tinenta routes in place OF one ana the Union r"oi"0
meets severe competition in its most Valuable local ei
ritory II remains to be how far the increase OF
traffic will compensate for subdivision consequently
load which few years ago might have been saeiy as
sumed is now dangerously heavy If you expect morse
to pull load it is not well to hitch to hun q ioau
heavier than he pull. What is true pbyscan'
of horse is true financially Of tie Union Pacific From
my present knowledge OF the companys system OF ROADS
and the existing business conditions obliged 10 say
that annual requirements of 81 100000 the part OF
the United States would cripple the Union Pacific ha
should be unwilling to assume any responsibility lor
the results.
AS respects the second scheme, am advised that the
eoualized payments, including those for the central
branch would amount to about 81 100000 year There
f. think fair reasonable prospect that the COM
pany could carry this burden do not pretend 10 speak
with confidence, for that load is heavy one ana
the future railroad is always matter OF uncertainty
1t depends only upon the business growth OF tne
country but upon the competition which the particular
road has 70 encounter. AS have already said. the
Union Pacific free from competitions nor that only
hut while compelling it to meet competition
In order to retain its traffic, the Gov
eminent has by its legislation, so
tied up the hands Of this company that 1t cannot meet
its competitors equal terms While they are at ho
erty to issue securities to guarantee construction and
otherwise to what be necessary to develop and
extend their systems, in the manner usual with rail-
road panies, the Union Pacific Is more or less man,
pered in all these respects cannot therefore, but con-
slider policy OF late years pursued with this company
by the United States as economically afsculty one From
INV point of view 1t interest either OF the Gov
ernmen the people to force the Union Pachc 10 an
nuay take large out OF It's quick capital ana
lock them up in overaowing National treasury Inc
Union Pacific serves six States and four Territories
There is not Of those States and Territories
which is not to-day calling for railroad. development
which IL it could be provided. would not only anord
whole communities sorey needed business facilities but
would add largely the traffic and the income OF this
company Every dollar of money, therefore, which Is
taken out of our business annually is so much which
cou,d be applied to the development OF the
country not only to the great advantage
of the Union Pacific but the increase OF the security
os the Government the ultimate recovery Of its
debt is conoerned Each request for these additional
facilities which reaches me will nave 10 pc met with
he
sno"y il has been paid into National Treasury. The
Governn has taken from us and the communities we
Paec pew has in the Thurman act sinking fund bring
Ing less than per cent interest year. some
miles of railroad Those $50 miles of railroad would
bring the Union Pacific system probably ten times
FIRST mortgage securities representing the ownership OF
this additional mileage might be deposited In the Treas
ury; and H. at the maturity of loan. the company was
unable to raise the money to pay the Govern
could sell out the securities the whole Union
Pacific system TO the highest bidder In an % human
estmable benefit would have been conferred upon the
communities which that system served such Il seems
Government to pursue with this company Congress
might impose any restrictions II saw at IN regard 10 tine
their securities of every description being deposited In
Pssc ioans mature the people the States Terri
tories beyond the Missouri and among the
IS now barren sinking fund.- useful TO no one. would be
converted into what seems to me the most be
Tnis plan, undoubtedly, Congress has iuily consa-
not srSeit imereiy submit il as the original scheme of
the directors OF the Union Pacific Railway Company.
Of View Wise scheme. and one more financially sound
than any which has been suggested Meanwhile II
a. are Imposed upon it. When the Thurman bin
passed the Government practically took the control OF
This matter OF the companys hands. The plan ns
REPRESENTATIVES had devised for meeting the Govern
naOr SsXsS Sy Congress substituted for It. The
sinking fund plan was substituted for the auxilary
=
In recent letter to the Board Of Government Directors
the OF the company has been an eIpeotsnt one
II has waited to what rule Congress In It's wisdom
ehaIl impose and when that rule is imposed 1t VIII live
up It. IT, upon fair trial. the burden exceeds the com
panys strength, the directors do not doubt that 10 the
Interest of ali concerned Congress win modify It. This
the Judiciary bin in the shape which understand
It has finally assumed The company is willing TO accept
II and To Loyalty live up to 1t to the best OF Its ability
Meanwhile 1t 10 not responsible for It, and H. as hope
win not be the case the burden shall be found 70
its will be simply for Congress to say whothe
II proposes take the property or to modify the Act
There is other matter TO which wish tc refer