Butte semi-weekly miner. [volume] (Butte, Mont.) 1886-1890, 1888-02-29
Charles Francis Adams Before the Sen.
ate Pacific r. r. Committee.
He Will Advise the UniOu Pacific to
Accept the Outhwaite Plan.
He Denies the Additional Security Of
fered by the Road is MOrtgaged.
The Branch Lines Not Affected by the
Governments Liens.

4& WASHINGTON, February 25.-The Senate
.# special committee, to which the report pre-
s# pared by the Pacific Railroad Com mmission
~ was referred, gave hearing to-day on that
81 branch of the subject relating especially to
VA affairs OF the Union Pacific Company.
III Among the gentlemen present were Charles
81 Francis Adams, President OF the Union Pa
"a cfic Mr.. Storey, it's attorney, and General
~ Johnston, Commissioner OF Railroads. Mr..
81 Adams addressed the committee. He had
s what he termed the equities OF the COM
IA panies' case, expressed its willingness to
Il meet its obligations if the burden were so
adjusted that it would not deprive the
property Of those erurns which were neces-
q sary to every well managed property and
" declared his readiness to advise his people
n to accept the settlement prOi Osed in the
81 Outhwaite bill with such notifications as
II he had already submitted to the House
N Commit tee. There was a general impress
a sion which had been repeatedly stated in
AZ the papers that the Union Pacific addl-
l# tional security
hi AMOUNTS TO NOTHING:
thai it was ;. Il mortsaged. This was shock
#ingy erroneo Is and no person who would
eXauiuc the property would indorse the
ssSSst A tcnent In order to show how gross
wv the error he would state a single prop
&osition So far as the Union Pacific was
#cuuccrned its criminal grounds in three
s4cilrs. Omaha, Kansas City and Denver,
sSwuulI before the loan matured be worth
twirr their present value, which was fully
Fifteen millions, and before the fifty year
eXteuSion period, which was now under
discussion, had passed he did OF hesitate
A. al ur,,unIS wp,1Nl ho !
worth more than the entire debt OF the |
road Hearst made point that the
mounds could not be made available to
M EXTINGUIsH THE DEBT
inasmuch as they would always be neces-
sary to the operation OF the road, to
which Adams reioined that the grounds
would have their value to whomsoever
Should purchase the road and the pur.
chase money for the grounds would be ap-
pliCablc upon the debt. Upon reply to
Frye, Adams said he supposed it was true
the grounds were encumbered by mortgages,
but he maintained that the enormous in
crease in value which was inevitable, was
not subject to incumbrance. Those prop
critics were not now included in the United /,
States security. They were subject to
mortgage which expires in five years.
Etorey counseI for the Union Pacific, fol-
bowed President Adams with brief history
81 previous legislation relating to the {
Pacific railroad and pointing out its defects. ,
He said |.
Ia THE ADDITIONAL SECURITY Ia
ofered to the Government by the Union
Pacific in the event OF extension OF its
debt was valued at about sixty million I
doilara. Commissioner Anderson who was I
3prc4ent intcrposed the remark that ac-
curling to his calculation the Government |
security would he about doubled; that the
added security would be about twenty-five t
h. iiiiuu dollars. Senator Morgan put it to I
thc counsel as IL legal proposition whether L
thr Government could not, by execution, s
altltuu2h without statutory lien on the 3
branchss, and IN its capacity as general Q
crcditor hold those branches as security? I
Mr. storey admitted that at the end OF ten a
Years the Government might, AS a general n
creditor. sue The company and ruin 1T. 1t
might add to its present security 246 miles q
of road and terminal facilities, but it could e.
bot touch the 1000 miles OF branch lines. r
Adjourned.