Butte semi-weekly miner. [volume] (Butte, Mont.) 1886-1890, 1888-02-25
CoNTRApICrED OVERWHELMINGLY

Union Pacific railroad company made by
the engineer of the Committee, he said
CoNTRAD1crED OVERWHELMINGLY
the minority of the commission, who had re-
ported that the road was bankrupt. The
engineer, after personal inspection OF every
mile of the road, and after making an in
ventory of every tie and fish plate, and all
which entered into the construction and
operation OF the road, had given it as his
opinion that the Union Pacific system was
worth $3.50. 900, and that it would
cost that sum of money to reproduce it.
The bond-aided portion OF the system was
encumbered to the extent of $S1 ,OOO, 900,
$33 900. 900 prior to the Government lien
and the balance subsequent to it. In the
light OF facts elected by the engineer the
commission had unanimously reached q
conclusion that. notwithstanding the great
value of the property and the enormous
annual income which it received, the COM
pany could not pay it's debt to the Govern
ment in 1895, 1896 and 1897, when it ma
tured, and the majority had
RECOMMENDED AN EXTENSION
of fifty years, the Government taking
contract mortgage instead OF the perpetua-
tion of it's lien. In order to increase the
Governments security and get cut OF the
company everything it had in the way of
security, the bill of the majority provided
that the company should give plain, old
fashioned contract mortgage on rything
it possessed. There was in the treasury OF
the Union Pacific securities of nine branch
lines amounting to $22, 2,OOO,O 900 and it las
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 securities which the Union
Pacific held in it's branch lines. II that
bill passed it would scoop in everything OF
value belonging to the Union Pacific and
whenf creditor gave all he had in the way
OF security, that was all that could be ex
pected. Outhwaite asked how it would do
to take all of the earnings of the Central
Pacific for the next ten years and at the
end Of that time, go for the men who
had ravished the company" Littler re-
piled emphatically that the Government
WOULD NOT GET A DOLLAR
under that plan. The Central Pacific was
leased to the Southern Pacific Company,
and it was in the power of the latter com.
pany to 80 keep the books and SO adjust
matters that not dollar would ever get
in the Governments possession. They
could so arrange it that no dollar OF net
revenue produced in the next ten years
would reach the Government. "You will
find that when the hat is passed around
on that occasion nothing will be taken in
it. We are absolutely without remedy
until the maturity of this debt" said Mr..
Littler. In answer to Weber's questions
as to why it would not be we'll to cause a
fs>h f0r a
Pacific, Littler said that the prospect OF
insolvency was no ground for the appoint
ment of q receiver, and the Supreme Court,
unfortunately for the Government, had
held that not one dollar of the debt would
be due till 1897, so the default could not be
declared. Suppose a receiver was ap-
pointed. The Government would receive q
worthless piece OF property. which it could
not operate without loss, a road cut of at
both ends,-a road without any connec-
ton with the great market of the Pacific
Coast. It
WOULD BE ANOMALOUS
in the history of lawsuits to appoint re-
ceiver where no part of the interest was
due, Turning his attention to Commits
sioner Pattison's minority report, the
witness said it required more of a lawyer
than that he (witnessl was to understand
how Congress could forfeit a charter to
Railroad company granted by State and
Territorial Governments. He could not
understand how Pattison would forfeit the
charters of the Pacific roads branch lines
when Congress had nothing to do with
granting these charters. Weber inquired
what was the substantial reasons for
granting more reasonable terms to the
Central Pacific than to the Union Pacific.
Littler replied that it was not because
these people were entitled to any consider
alton at the hands of Congress-. he was
here to represent the Government. He
would if member OF Congress ignore for q
time the crimes and shortcoming of these
men. He would treat the debt as q busi-
ness matter on business principles. He
did not believe the people OF the country
are crying for the blood Of the managers,