Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1888-03-01


which the government had control, and
in equity it ought not now to seek TO
make the Impairment good at the expense
Of the party injured by it, viz, the COM
pany.
MR.. LITTLERs ADDRESS.
Mr.. Littler then addressed the commit
tee. Taking up the case of the Union
Pacific railroad he called attention to the
fact that the bond-aided portion of the
road did not embrace the terminal facili-
ties and property at Omaha, Kansas City
or Denver, which were worth millions of
dollars. The government would not have
much trouOle in dealing with the Union
Pacific. The entire country from Omaha
to the base of the Rocky Mountains would
produce very large traffic and enable
the company under an economical man
agement to pay off It's debt.
From Cheyenne to Ogden the road
ran through Godforsaken country,
which promised nothing In the FIXTURE,
and the Union Pacific would have to
depend for resources upon the line be-
tween the Missouri river and the Rocky
Mountains The majority had reported
upon the Union Pacific as solvent and
with fair extensions to be able to pay its
debt. Some of its branch lines were
worthless, and had been acquired under
circumstances which reflected discredit
upon the integrity or judgment of the
persons managing the road. The Utah
Northern and Oregon short line was a
valuable acquisition and with the develop
ments OF the country added largely to
the revenue. The estimate of the value
of the Union Pacific railway made by the
a. i
overwhelmingly the minority commits
sioner, who had reported the road bank
rupt In the light of the facts elected
the commission had unanimously reached
the conclusion that Notwithstanding the
great value of the property and the enor
nous annual income it received the COM
pany could not pay It's debt in 1895, 1896
and 1897, when it matured, and the ma
iority had recommended an extension of
fifty years, the government taking con-
tract mortgage instead of perpetuating
its lien. There was in the treasury
of the Union Pacific securities of
It's branch lines amounting to $22,000,000
and it was the intention of the bill to
retain to the government not only the
equity remaining in the property, after
the payment of prior liens, but also all
security which the Union Pacific held in
branch lines.
Cultivate asked how it would do to
take all the earnings of the Central Pa
cifc for the next ten years and at the
end of that time ''go for the men who had
ravished the company"
Littler replied alphabetically that the
government would not get dollar unGer
that plan.
In answer to Weher's questions as to
why it would not be well to cause a re,
ceiver tc be appointed for the Cantral
Pacific, Littler seid the prospect of insol-
vency was
No GROUND FOR THE APPOINTMENT OF A RE
ORIvER.
The supreme court held that not one dol
lar of the debt would he due until 1895, so
default could not be declared. Suppose
q receiver was appointed, the govern
ment would receive Q worthless piece of
properly which it could not operate with
out loss; road cut off at both ends of
the road, without any connection with the
great markets of the Pacific coast.
1t would be anomalous in the history
of law suits to appoint receiver>where
no part of the interest is due. Turning
attention to Commissioner Pattison's
minority report, witness said it required
more of a lawyer than ne was to under
stand how congress could forfeit the char
ter to railroad company granted by
state and territorial governments. Weber
inquired what were the substantial rea-
sons for granting more reasonable terms
to the Central than to the Union Pacific.
Littler replied it was not because these
people were entitled to any consideration
at the hands of congress. He would, if g
member of congress ignore for the time,
the crimes ana shortcomings of these men.
He would treat it as a business matter on
business principles. 1t was the duty of
the committee to recover the money, and
If it acted wisely it would be able to do
so. Unless the committee settled this
matter on business principles the govern
ment would in 1897 lose fifty million dol
lars through the Central Pacific. If it
acted wisely and as statesmen, in ten
years ten million dollars would be paid to
the government and it could rest in the
belief that the entire debt was in course
of extinction. 1t was a matter of no
consequence whether it gave the company