New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-02-26
THE PACIFIC RAILROADS.
A SENATE COMMITTEE AT WORK.
MR.. ADAMS APPEARS FOR THE UNION PACIfic's
SIDE OF THE QUESTION

MR.. ADAMS APPEARS FOR THE UNION PACIfiCs
SIDE OF THE QUESTION
WASHINGTON, Feb. 25.-The Senate Special Committee
which the report presented by tue Pacific Railroad
Commission REFERRED gave hearing to-day on that
branch OF the subject relating especially TO the affairs oil
the Union Pacific Company. Among those present were
Charles Francis Adams president OF the Union Pacihc
Mr. Storey, its attorney, and General Johnsion' Com
missioner of Railroads.
Mr. Adams dressed the committee He sta'ea wna'
he termed the equities OF the company case. ana us
readiness TO advise his people 10 accept the sctcch
o.o, 4, tho Ou,bwaite bill with such notifications
a. be had already submitted to the House Committee
There was general impression that the UNION RACINE
additional security amounts to nothing-tbat IL was HI
,nor,g,yed This was shockIngly erroneous aud no
mel son who would examine the property would lndorso
the Abatement In order to show how gross was the
error he would state single proposition So far as the
Union Pacific concerned It's terminal grounds In the
three ctIes-Omaha, Kansas City and Denver-would
before tho loan natures be worth twice their present
value which fully fifteen millions; and before the
dfty year extension period which now under DIS
cussion had passed ho did not hesitate 10 say these
terminal grounds would be worth than the entire
debt OF The road.
Senator Hearst made the point that the grounds could
not be available TO extngu sh the companys debt
inasmuch they would always be necessary to tho
operation Of the road 20 which Mr. Adams reolncd that
the grounds would have their value to whomsover
should purchase the road and the purchase money FOR
tho grounds would be applicable upon the debt
In reply.toEenator Frye Mr. Adams said. he supposed
it true that the grounds we're encountered by mort
cages but ho maintained that the enormous increase In
value which was inevitable not subject to the en-
cmbrance In Kansas CITY, he said. in 1869. when Inc
bridge building bought land FOR $50 an acre
on the bottoms; halfacre was recently sold Tor
100000. These properties were not included In the
United States security. They were subject to mort
gage which expires in five years .
Mr.. Adams repeated the proposition OF the Union
Pacific Company for the settlement OF its debt sun
stantialy IL had been made to the House Committee
Wuod1eld Storey, counsel for tho Union Pacific, f0-
lowed President Adams with brief history of previous
legislation relating TO tho Pacific Railroads lie made
comparison between the Commission bills and the
Outhwae bill The principal difference. he said, was
that the Commission proposed separate bills III me case
OF the Union and Central Pacific Companies, while tho
Cultivate bill dealt with both roads Again, the Com
mission bill allowed the coinpaies compound interest III
computing the present value OF the dcbts whlle inc
Cultivate bill allowed simple interest Mr.. storey De
evei that the House Committee was now inclined 10
take the Commissions view TO the cxpedlency OF deal
ing separately with the roads
Senator Morgan suggested that tho United states
might practically take control OF the Union Pacific by III
creasDg the number Of Government directors 10
ina lorty Of the hoard.
Mr.. storey admitted that the Government might 40
that, but sd that IL could not thereby increase lts
security take any OF tho branch line earnings.
At the conclusion Of Mr.. Storey's argument the com
mittee adjourned until next Saturday