Evening star. [volume] (Washington, D.C.) 1854-1972, 1888-02-11

Rressae0s Adams has . fasasiag De.
fore the House Pacific RaA1ro0As
C0mmaitf~~.

Cosnaistse.
The president Of the Union Pacific Railway CO,
Chas Francis Adams Was heard to-day for an
hour and q half by the House committee on PACING
RaflroadA 10 explanation Of the condition OF the
company which he represents its attitude toward
the various funding bills. and upon other matters
connected with Pacific Railroad legislation He
said he had made a statement TO the committee
two years ago. which, in fits essential features he
had seen no occasion TO revise. He proposed TO
come directly down to the point where
the Investigating commission had left the
business. He had read the chairmans bill. which
was before the committee. Touching the recon-
Of the eompanT 1ns hs1 ne f fs,a Sa
IN It's report and conclusions had endeavored TO
t Se Just and reasonable They had not come to
house, such the kothschilds or the
Barngs, TO VIII ch the company Owed large sums
Of Oh money would have come under IKE circum,
stances The terms aud restrictions which the
committee had imposed upon the Union Pacific
had been more severe and gid than would be I'M
posed oy banking house which wished merely TO
get back Its money.
THE COMPANY NOT TO BLAME.
For Its heaviest liability the company was not
TO blame. He would simply call attention 70
another difficulty between the Union Pacific and
the Government. 1t was mistake for which the
company was In no way responsible. His atten-
ton had first been called 10 it by the Hon. John
sherman who, when they were travelling together
why It was that IN the case OF the Pacific rail-
ROAD loans, or all loans made during the
last war, the Government had deviated from It's
nnancial policy OF obtaining an option OF redemp-
ton. This was probably due to the fact that the
loan had been arranged by the Pacinc Raj road
Company, not by the finance committee, where
the other loans had originated.
WHAT MIGHT HAVE BEEN.
II redemption feature had been inserted In this
particular case the per cent bonds could have
been replaced ten years ago by per cent loan,
and the whole difficulty between the Government
ana the Paclhc railroads could have been solved.
Interest charges could have been paid promptly.
and at the maturity OF the debt the Union Pacific
would have been able TO float new loan on the
market with the proceeds or which the Govern
ment debt and the first mortgage bonds might
have been paid OF. In dealing with this matter
it as a money lender would He would say to M
sell, these people are willing TO pay me- the dill
Guilty Is that 1t will take them nine years 70 read
Just their burdens TO their strength, otherwise
they will become bankrupt on my hands and
VIII lose money. That was the whole problem.
all. II you VIII give us chance, " said Mr. Adams.
I'VE are willing ana able to pay the Government,
ana II only remains TO that the load Is 30 adj
)usted that we can pay 1t"
FINANCES OF THE COMPANY.
Continuing, he said the road was under great
restrictions placed upon it In the last twenty
years. and 1t was b st to proceed slowly 1t had
loan of ST., 600, 900 at 8 per cent coming due In
nve years. which under. favorable circumstances
might be replaced with per cent
loan, Five years after that another loan Of
$33, 900 matured, which might also be replaced
at per cent There were also 81 200, 600 OF an
nual nxed charges, which the company was gradu-
ally freeing Itself from and read1usting, SO that
The chairman inquired IL the loans spoken OF
could not be readJusted at an average OF about
per cent less than the figures given by Mr. Adams.
MIR. Adams could not say positively; OF course
they would readjust the loans at the lowest rates
they could get lie said that he had gone with
care over the bills prepared by the Commission
and Mr.. Cultivate, and had prepared a statement
showing now they would have worked II enforced
during the four years OF his presidency. Ii was
also assumed that the requirements or the Outh-
waite bill had replaced those imposed by The
Thurman act. Had II Ghe cultivate oilD
Seen enforced The would nass
charges including its payments to the Govern
ment, and IL would have had a surplus over and
ABOVE Sppncabie to other purposes, amounting 10
81, 500, OOO or IN per cent on the capital stock.
he had no occasion TO revise his statement he had
made TO the committee three years ago to the
revenue above fixed charges equivalent TO 2k per
cent, 40 be plowed into the soil"
As TO THE CULTIVATE BILL.
Under the provisions OF the Cultivate bill, II 1t
had been enforced during the last four years, the
company would have paid all the fixed charges and
soil per cent on the capital stock, leaving the
nominal amount OF one-haf OF / per cent OF the
capital stock applicable 70 dividend and other pur-
poses. This was not sufficient return on the in
vestment
II the stockholders did not make profit In one
way they would be apt TO do IT n another; II not
without dividends the stock would be driven away
from the investment holders and into the street,
and no road thrived under speculative ownership
He did not think II would be Use TO pass any OF
the bills without removing some OF the restrtc-
tons He wished the committee TO consider he
stockholders OF the Union Pacific. This
constant agitation OF the subject
had such an injurious eject upon the roads
traffic that It made the life OF railroad president
happy one" After all this Injurious agita-
ton and challenging OF It's honesty and in
tegrity OF purpose he was free To say
that II a bill was passed based upon the
he would do all that he could 10 induce the stock.
holders TO accept it,
Chairman Outhwaite-What do you think OF
the probabilities or the stockholders accepting the
bill?
Mr., Adams-I think they would accept It.
Continuing he said ne wisued to correct an i'm
preston which had been conveyed through the
press and otherwise, not particularly compliment
tary to himself, which had taken the form OF lam
gu ge to the effect that he was a respectable
president OF the Union Pacific he had
managed the affairs OF the company absolutely,
and had been responsible for everyt hing done or
NOS done. He had never been hampered, restricted
or Overruled. Mr. Mason ask how the bill might
be mOdih d to meet his views.
Mr.. Adams replied that as 1t would involve
going into detail he would prefer submitting a
written statement 10 the committee. These modi-
ications would not touch the essentials or the bill
He did not care to increase the time allowed by
the Cultivate bill for the payment OF the debt The
company would agree to pay 1t In fifty years The
other burdens would readJust themselves rapidly
loan where the fatal mistake had been made
which was milestone around the company s neck.
The witness then turned his attention to the sink
ing fund, pointing out as curious fact how the
ft,,, I'm of ha had