Crawford avalanche. (Grayling, Mich.) 1879-19??, 1888-01-19
THURSDAY, JANUARY 49, 1888.

was PAID over, Durant made fresh pledges
and asked to be allowed to finish his trip.
Under Christopher's advice, however, the
men refused. Then Durant began to rave
and threaten them with imprisonment, say
ing he had wired for help. The men in
command were not fooled by this talk, as
they had taken good care that no commun-
icat on revealing the actual condition Of
Affairs should 90 over the wires. Before
morning of the third day Mr.. Wilson, of
New York, who was with Dufant, advanced
the latter $5O,0OO, and Henry Rogers, a
Cheyenne banker, was sent for. When
Rogers arrived Durant drew drafts on New
York Tor the remaining 100000, which
Rogers accepted and gave Christopher GER
tiicates of deposit for. Thus the men were
paid In full, and the car pulled out in
hurry, Durant standing on the platform and
swearing that he would have Christopher
and his allies in the penitentiary for train
robbery. The affair finally died out, how
ever, and there was no prosecution.
With the completion of the road the gang
looked Tor new conquests, and turned their
attention to the operating department.
When President Lincoln, In conformity
with the wishes of the original projectors
or the road, located its eastern terminus on
tho west bank of the Missouri River he
named Omaha as the initial point. This
did not satisfy the cormorants, who were
hungry for fresh prey. Money was to be
made in the construction and operation
particularly the latter-of q bridge across
the Missouri, and in connection herewith
of union depot on the Iowa side. In or
der to proceed legally with this work 1t
was necessary 10 have a judicial decision
naming the eastern bank Of the Missouri as
the intended and proper initial point of the
rood Thia ~
Dillon, then on the United States bench,
and was followed, on the Judges retire.
ment, by his appointment as counsel for the
company at a fat salary. Under this de-
cision the bridge and union depots were
built, and are being operated to- day at an
immense proft which goes only in small
part to the stockholders of the railroad,
the bulk being absorbed by the favored few
who manipulate the inside" construction
concerns. These "inside" companies have
always been a curious feature of Union
Pacific history. The company stands spon-
sor fer branch roads without number, for
bridge corporations, for coal mines and
ganizaions whense1eE esa one by or Ts.se ,i,
issues is found to be earning fair divi-
dend goodly share of the stock can be
traced to individuals, while the securities
of the non-paying concerns invariably are
classed among the assets Of the parent
company.
When Charles Francis Adams was elect
ed President of the Union Pacific some
three years ago, there was a terrible shak.
ing up OF the offenders in this line, and
an honest and determined effort was made
to put the affairs of the company on q fair
and sound basis. That it has been only
partially successful is not the fault of Mr..
Adams. During the shaking-up process
referred to, some startling disclosures were
made, of which Mr.. Adams is possibly not
as Ignorant as he would claim to be to an
interviewer. One of these was q WELL
matured plan, fathered by men high in
Union Pacific management, to gobble the
valuable portions of the road, and leave
the Government holding the bag" after
the fashion of the Southern snipe- hunters.
IRa FL az sSuf5Ed f65d5f for tss aid
mortgage on The main line between Omaha
and Ogden, and on the Kansas Branch west
OF the 35Oth mile-post. The earnings OF
these mortgaged roads, instead of going into
sinking fund for the gradual extinction of
the Government debt, have been used in the
building of branch lines, feeders, etc.,
until now the company has q network of
roads that, with connecting links of few
miles put in here and there, would give it
a satisfactory through route. 1t was the
intention in case the Government pressed
payment of its claim, to allow the old
roads to be seized, and the company would
then have a comprehensive system, free
from Government debt and congressional
interference. Thus the Union Pacific has
for years been actively at work tacking
together its various branch lines until now a
glance at its map will show that, by the
dropping down of a few rails, it would
have an independent and practical line
from Missouri River points to Portland,
aside from the regular road. Should the
majority report OF the Commission, recon-
mending the extension Of tho time for pay
ing the debt, be adopted this scheme will
be sat upon still harder.
Mr.. Adams and the men now associated
with him in the management of the COM
pany are understood 10 have some ideas of
their own in regard TO financial matters
which may be laid before Congress for con-
Under its charter the Union
Pacific is debarred from borrowing money
or guaranteeing the securities of other COR
porations. Much as it may need money
for legitimate uses it cannot go into the
market and borrow it like other CORPORA
tions. For this reason many we'll -inten-
toned and necessary improvements have
been delayed, and territory which should
have been gridironed by Union Pacific
tracks has been seized by competing roads.
The efforts of the company in the past
have been directed 10 the securing of a link
of outside roads rather than the invasion Of
paying territory. Many miles of branch
lines in eastern Nebraska are needed, rath-
er than costly and uncertain roads into
thilly settled parts OF Colorado and Idaho.
But promising as theS0 projected feed
ers may be, investors do not care to
pu' money into them unless they are rea-
sonably certain, under a guarantee, that
the interest at least will be paid. Mr..
Adams is known to favor the granting of
power to the Union Pacific to either bor-
row the money to build such roads or to
guarantee their securities so they will find
sale on the market. The companys sur
plus in the hands of the authorities at
Washington, drawing at the most Al per
cent, could, he was heard to assert some
time ago, be used just as safely and much |
more proftably in the building of branch |
roads into the thickly settled agricultural |
regions of Kansas and Nebraska. Mr. |
Adams even goes so far as to claim that |
the money thus invested would earn 10 per |
cent. where ii now only brings Al, and that
in addition it would largely swell the |
profits OF the Union Pacific, make the |
a more valuable security for the |
Government mortgage, and insure the pay |
nent of the huge debt at q much earlier |
period than by any other means.