New-York tribune., 1886-02-04
WEIR UNION PACIFIC SYSTEM.

"The directors cannot emphasize too strongly tho
value to the Union Pacific of its auxiliary branch
line system whole. Some of the lines 1t Is trae,
nucOusy located and in themselves only operated
at "a loss. feeders to this main ilae all have
value which does appear their own balance
sheets In fact without them the main line would to.
day be bankrupt property. But valuable as tho
present auxiliary branch system may be 1t is far below
the development which must have to properly occupy
the local territory tributary the roads, and which viii
certainly be occupied by its rivals II neglected by tie
Union Pacific Already its rivals, some of them among
the richest and strongest corporations In the UniteG
States, actively at work extending their lines to
reach business which Is now tributary 10 it.
AS matters stand the debt Of the rOat Is pr0w
ing larger from year year, aud the time OF It's mltur
y is not far distant The uncertain attitude and inten.
Ons OF the Government calculated to impair tho
credit OF the company, aud not only hamper 1t in efforts
10 secure its present and future business on safe
foundation but even, In OF serious financial crises,
to threaten grave present disaster"
The Board commends the plan of equalizsd payments
(Which has been adopted b. the Senate judiciary Com
mee In framing the egltyyear bill reported this
SION. The report continues: 1T has been suggested
that the Government should the right TO take
the underlying first mortgage bonds Of the company
they fall due and acquire the lien which those
bonds have upon the prop ry. Tue arrangement woud
to be desirable one both sides.
II would make the lien OF the Government upon tine
Inent can borrow money per cent, II would red
the fixed charges upon the property about 100000
per anuum below the present requirements. This saw
ug would soon retire the whole issue OF bon!s about
S3j,0OOOOO 10 Is most desirable tnat IN any
new legislation the amount Of the annual payments
.hnuI he "A inite ana ed sum 10 be nnI ab.outely
without REGARD to net earniu gross nnss, or any
contingency whatever. Aud when this change Is made
present laws the restrictions upon the financial
operations Of the company imposed 10 protect the an
Bua net earnings. should be removed that the company
As has been shown above. the entire issue OF
bords and floating oGbt upon nc whole system Is 6it
about $4,000 per nile Should II become necessary l"r
Government To fOrecOse ana take possession by any
default of the company II conld pn bankri mortstIe
annual ixcd charges only $50 per mile on line now
-. 900 net.
Tie present and the future" the report in
cIus.On. must now be dealt wit and some early action
is OF pressing necessity. Aud some action is
sary /, Is desirable that II be compre
directors confidently recommend early action, and that
should ue based upon the principles OF the Hoar bill
tuued operation OF the Thurman bill further lexis
laou would sti be absolutely necessary before toe 1;
turity the debt. This wOnd keep the company aud
i'a h"rS , ~ NoSrri [ Ut hr = - Sanr ~ sava,e
". A. Hanna +. X. Coudert AMI Franklin Macveagh.
The Damn b TO amend the Thurman act was fur
ther considered by the House committee on Pacic Rail
ROADS to-day Chairman ThrOckmoron laid before the
committee letter from C. r. huntington In regar tOths
n te ines, ths Union aud Central Pa iac X Il odd.
Mr. Huntington ca IL attention to The various lrsI,lvo
made by Congress since the road estab.
lishcd and 10 them he attributes the growing load 0f
deb OF the conn aniAs. Ofthc Thurman act Mr HGnhg
II has always seemed as II the act originated
a T. cling pquc aud carried through Congress
partly through political ambition and partly by popular
rlamor totny out Of place IN the consideration OF
business matter Whatever motives the result has been
unfortunate to both parties After stating that tho
various bills before Congress impose obligations greater
than the ability of the company 70
perform, Mr.. HUNTINGTON says that theso
legislative projects Tor compelling reimbursement III
of the reasonable ability Of the c"mpinys earn
ngs advance but rrard, the object s0ught Con-
gross would hasten the reimbursement by eonea" nr
aud course, while menacig anu petse-
cutting attitude only delay IL. Sho1d COhgTeSs
make acceptable proposition, sprr ing tnee
repayments longer period at low Tate Oh .e.
est il will enable the company To make neter t ,ctns
with the holders OF first mortgage bonds In cohcus1u
Mr.. Huntington says: d" AS all evidence oil the att'lo
OF stockholders the
they are ready aud willing TO submit their claim anu
settlement under II to "A commission of qualihed uisIu
tnreste persons act either arbitrators or ad'se"
of the Government"