Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1888-02-26
THE PACIFIC RAILWAYS.
Prsatdens Adams, ef sAe Unisa rsesse.
b 0ss sf the wfsasasss-IAey All
Plead for Mors Tine.

oomrrltsee TO which The report prepared
~ the PAosas railroad commission vas
referred Ravs hsafing today On thai
branch Of the subjsct relating especially
20 TIE s1airs Of the Uai0n Paciic COM
pany. Among tbs Rentiennea peessat
vsre Charles Francis Adams, president
ef The Union Pacific, xsf. storey, iss
assoeoeJ, and General Johnston. com-
missioner u railroads.
Mr. Adams addressed the coumittoe.
De had wnas be termed the equities Of
the compAuy's case and expressed It's
willingness 10 meet Its obligations II the
burden were 20 adjusted that IL would
not deesivs the property of those
returns which we're necessary TO every
veil managed property. and declsFed
his readiness 10 advise his peopis to CO.
ceps the settlement proposed In tie
Outhwaite bill WITH suoh modi6cstions
- be had already submitted 10 tins
committee. There vas general impress
sion, which had been repeatedly stated,
u the papers thAt the Union Pacificfs
additional security ano2nts 20 nothing.
and that it was all morsgaesd. This
vas aoockipQiy erroneous. and no Per
con Who would examine the property
would endorss the statement. In order
to snoW bee Gross wns the error be
would STATE . single proposition. So far
a. the Union Pacific Vas concerned iis
terminal grounds in the three cities,
Omaha, Kansas City and Decveg. would
before the loan masured be worth twice
their present value, which vas fully
100000, and before tie fifty years
extension period which was new under
discussion had passed he did not hesi-
tate 70 say that theec terminal grounds
would be worth more than the entire
debt Of the road.
Mr.. Hearst made the point that the
grounds could not be mate availabls TO
exsiogu,sh the debt. inasmnch 40 they
vonld aivaye be necessary TO the opera
ton of the road. 10 which Mr.. Adams
rej0ined that the roads would have their
vaiue 70 wbosoever should purchase the
road and the purchase money for
grounds would be applicable upoa the
debt.
In reply to Mr.. Frye, Mr.. Adams said
he supposed il vas true that the grounds
wsre encumbered by mortgages but be
maintained that the enoFnou5 increase
10 value which vas inevitable was not
subject 70 the incumbrsnce. Thsse
VhokS&ttCo HGA0 B0b INV t6Si6aSo - AAN
United States security. They we're sub.
jeot 10 mortgage which expires in five
vesHs.
Mr.. woodheld Story. counsel for the
Union Pacific followed President
Adams with brief history of previous
legislation relating to the Pacific rail-
roads, pointing out its defecis. He
said tha: The additional sec nrity offered
to the government by the Union Pacific
10 the event Of su extension OF its
debt we're valued at about $G0.-
100000.
Commissioner Anderson, who was
present, interposed to remark that ac-
cording 10 his ealsulation she govern
nent security would be about $25,-
COO. 600.
Senator Morgan put i: TO the COUNSEL
a. Q legal proposition whether tine gov
ernmeni o3uid not BY an execution, al
though wishou. a statutory iisn on the
branches,sn il its capacity as cenes,
al creditor hold those branches as
security.
Mr.. Story admitted that at the end
Of ten years the government.
might IS a general creditor sue
the company and ruin il. II might add
10 its present security the 2i6 miles of
road and terminal facilities, but IL coald
not touch the 1000 miles Of branch lines.
Adjourned.