New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-10-29
S. Reed chairman Relief Committee, Now Dccatu tur'
Ala ANDREW C. FREY, Mayor New Decatur
RAILROAD INTERESTS.
UNION PACIFIC'S NEW LOAN.
EX-JUDGE DILLON REFUrEs SOME MIsREPhE-
sENTATIoNs IN "THE TIMES"

EX-JUDGE DILLON REFUTEs SOME MIsREPhE
sENTATIoNs IN "THE TIMES"
Some statements were made yesterday In the hnan
cIal columns of The Times which were called ~
the attention Of ex-Judge John F. Dillon One was
that :" the Union Pacific Company furnishes cas'
where railroad company sets up the opinion OF l''
own paid attorney as sufficient authority for uc
claring that an act Of Congress null and VOID ino
company is prohibited by law from guaranteeing 'ne
bonds of another corporation. Nevertheless, "ncn
the directors organized the oregon Short Line oo"
many bonds were issued to build IT, and President
Adams justified 1t on the ground that the counsci VI
the company had advised II. Emboideued oy 'h'o
success. the company has now advertised d NC" ~
of "a. 100000 FIVE per cent guaranteed bonos On
another branch built by corporation organized by the
directors. under the name of the Union Pacinc, LII
coin and Colorado Company
Ex-Judge Dillon said
The article is founded upon entire msconcepton OF
the company's powers The Union Paeinc company IN
Kansas has the power the Kansas and racine Oon-
,.rv. thu lincoln and Colorado Company Is a kansas
cornoroton and the statute OF Kansas Is express tns
any Kansas corporation purchase ana euara''ee ~
bonds OF any connecting company. And the power "
make such guarantee as the Union Pacific has maze
bts been sustained by the Supreme Court OF Kansas
and that OF the United States and is not prohioteo
by any act of Congress. Every lawyer knows tha'
such guarantee is not mortgage or piedgc Oh earn
ines and such also the decision on this point oi
tho United States Railroad Commissioners vi inc
validity OF the guarantee in question there Is no shadow
OF doubt. -.
On this same subject The World' yesterday hah
local article in which It attacked the union facino
Railway Company, asserting that the company mas
appeared again in open, deliberate defiance OF ia"
The Worldn quoted from an act OF congress- aP
proved March g. 1873
The reporter said to Sidney Dillon: Here is al
article in The Times which states that when INC
Oregon Short Line was built the Union Pacnc Oom
pany guaranteed the bonds, and the counsei 10 sau
to have Justified it by saying that he advertised IT,
Mr.. Dillon replied:
think that was the whether so or hoI thc 'o"1
was needed 10 protect Union Pacific Railroad 10 give
f. new business and protect It from the nvasiohS Oh
other roads which step proved to be great success
The company at the present Zine holds about ssoooooo
OF the stock for its and interchange OF business
what about tho Union Pacific, Lncoln ana
Colorado? ?" asked. -, a,..
Whatever has been DONE Mr.. Dillon replied, = mas
been done I'm the interest of the Union PACING haii
road and nothing else No director or oincer Oh INC
road has any interest In the contract Tor building W
road 1t is a parallel with the Short Line anu
that Is all there is IL. All our plans were iorIhu
lated under the advice of counsel by making me
guarantee the Union Pacific gets the entire Duslness
of the Oregon Short Line, and likewise about ToOVo
600 of tho stock which IS selling IN the market
AT about 40. In a short time Ii VIII be worm par"