New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-02-12
MR.. ADAMS SATISFIED.
THE COMMISSIONS BILL SUITS HIM
HEARING on THE UNION PAoIFIC's GOVERNMENT
DrBr ny A COMMITTEE.

THE COMMISSIONS BILL SUITS HIM
HEARING on THE UNION PAoIFIC's GOVERNMENT
DEBT ny COMMITTEE.
WASHINGTON, Tcb. 1.-THE presldeho % INC
Onion Pacific Railway Company, Charies r"no,s
Adams, was heard to-day for an hour anu nan
nv the House Committee Pacific Railroads IN
.yrlana,,on NJ the condition of the company
which he represents it's attitude toward the Vari-
ons funding bills and upon other matters con-
uected with Pacific Railroad legislation. lie
heoan his statement by reminder to the comml1-
Tee that he had made statement 10 tine coininiV
e.. ,,,o vosrs ago which, in its essential features
Ne had seen no occasion TO revise. meanwhile
che business had become two years older, ana was
a matter of hich not only the country, but Con
.ress and the press had become somewhat weary
IT, WAS useless, said Mr. Adams, to repine over
Che past, but he would simply call attention to
another difficulty between the Union Pacific and
the Government. 1t was q mistake for which
The company was In no way responsible. His
attention had first been called to It by Senator
John Sherman, who, when they were traVei-
hing together in Oregon Sns day. hs rs Of 1 the
during the last war, the Government had
option~of redemption This was probably due TO
the fact that tho loan had been arranged oy tle
Pacific Railroad Company not P Sy tn %,,a;natcS
II q ,raemntion feature had been inserted in this
particular case the per cent bonds could nave
and the whole difficulty between the Government
and the Pacific Railroads could have peen soIved.
In crest charges could have ceen Raio prIpn,p;s Lug
and M the maturity of the debt the Union racine
would have been able to float new loan on the
market with the proceeds OF which the Government
debt AID the first mortgage oonds migu' nave oeo"
paid off. .a
Continuing. the speaker said that the road was
under great restrictions. placed upon u IN the iast
Al. and ~ xya hoo
had loan Of $15, 100000. at 8 per cent, coming
due m five years. which under favorable circutn-
eences might be replaced with a b per cent loan.
Yive years after another loan of $33, 600 ma
tured which might also be replaced at per cent.
There were also Sl,2OO,OOo OF hxed ehaIsesi
from aud readiusting so that they could be carried
The chairman inquired If the loans spoken OF
eoud not be a. an syersS N Adsm
Mr. Adams could not say positively vi course
they would readjust the loans at the lowest rate
per cent money market, and then again 1T might
have to pay five per cent He SAID hat he had gone
siop and Mr. Cultivate and mad prepared state
ment showing how they would have workeo II
enforced during the four years OF his presidency OF
the Union Pacific. II was also assumed that me
requirements of the Gu hwaite bill had replaced
those imposed by the Thurman Act Had 1t Uhe
Outh ate bib been enforced the company would
ing IT'S payments TO the Government, ana IL w0uld
have had surplus over and apove appidcaoie o. ~
per cent on the capital stock. He had no occasion
10 revise his statement he had made to the COM
mi,tee two years ago, to the effect that any
company must have a surplus revenue above liked
charges equivalent to two and nalf per cent 10
be piOughed into the soil" The Union racine prop
erty could not be maintained lp competition WIN
OF hers unless two pei cent year was poughed into
the soil
This was not @ sufficient return on tne invest
ment The stock holders were not likely to operate
O road from patriotism or for fun. They operated
1t for profit and that was he very best purpose on
earth. II they dd not make profit IN one way; tney
would be apt 10 40 II IN another II not IN ieRti.
mate way, then III an illegtimate way. Wltnont
dividends the stock would be driven away from inc
investment holders and lnto the street ana no roa9
thrved under speculative ownership he nad
always been afraid of that IN the case OF me Gn,on
iion He did not think that It would
be wise to pass any OF the DIS Wiz
ae was ree 10 say that if bill was passed by Con
eress based upon the general line Of the cultivate
or Commission bill, with such notifications as he
should hope to see, and the burden was anywhere
within the companys strength to carry, ne wouIo
do all that he could in the form OF recommendation
nduce the to accept Som think Of tb.
B iisi Oh the ''''AH''ae''
MIR. Adams i think they would accept it,
Mr.. Mason asked how the bill might be modlned
to meet his views.
Mr. Adams replied that as 1t would involve 60
ing into details be would prefer submitting a
written statement to the committee THESE mooi-
fcaons would not touch the essentials OF the OH
fifty years The other burdens would readJust
themselves rapidly from this time forward IL was
IL the thIrty-year loan where the fatal mstaKe
had been made, which was milestone around the
companv's neck. ;,
Mr. Cultivate inquired IL the company could
not in the event Of the passage and acceptance
of the bill, issue new series OF per cent h1ty,
year bonds in exchange for the outstanding .
Der cent bonds.
Mr. Adams did not think It could
Mr. Cultivate wished to know II h1ty-year
4 Der cent first mortgage bond guaranteed by the
Government would not be the best In existence at
this time. ,
The witness admitted that it would be a good
bond indeed. But in the case OF the Union "a
oifc the company had been so shaken by the
events OF the last few years that anything bear
ing its name was looked upon as more question:
able than paper bearing the name OF other hrst
class investment companies. - ".
Mr. OuthwaIte-Afc MesSrs. Stanloru, NUM-
ipyton or Crocker interested in the Union iScincI
Mr. Adams-Not the slightest In the world
Mr. Outhwaite remarked that It was claimed
tha, the Union Pacific had diverted earnings
that should have been paid to the Government
for the purpose of building branch lines
The witness replied with some heat that not
dollar had been diverted In that way
Mr. Grain remarked that Mr.. Huntington had
asked for thirty days time in which to prepare
his proposition, and he inquired how much time
the witness wanted for that purpose :.
Mr. Adams replied that he would submit lo
within orty-cight hours.
FAIR DEALING FOR PROTECrlONISTS
WASHINGTON, Feb IL lSpecaN.-A dispatch
from Waebinoton In "The Herald Of to-day to