Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1890-12-31
RAILWAY CIRCLES.
President Dillon Makes a Statement on
the Omaha Bridge Troubles.

President Dillon Makes Statement on
the Omaha Bridge Troubles.
NEW YORK, December 30th.-President
Dillon of the Union Pacific made state.
ment to day in regard to the Omaha bridge
trouble between the Union Pacific and the
st. Paul and Rock Island roads: May l,
1890, what purported to be lease of Union
Pacific bridge terminals at Omaha and the
use of its main tracks to the westward
limits of Omaha was made to the ST. Paul
and Rock Island roads. These leases were
for a consideration about half what the
company received last year from its bridge
tolls. Acting under these leases of our
terminal at Omaha, the Rock Island adver-
tised an open competing line to the Union
Pacific for its whole length, from Omaha to
Ogden, thus paralleling the Union Pacific
for its entire length. The Government
Directors requested the President of the
company to suspend any action under
these leases until such time as they could
be legally advised as to their validity.
In regard to the statement of Presiden.
Miller that the bridge trouble would inter-
fere with the Presidents agreenen t, Edwin
Gould said: ut is different matter. This
has nothing to do with the maintenance of
rates.
Jay Gould later said the alleged leases
with the Rock Island and st. Paul were,
as a business transaction, the most ridicu.
lous and absurd he ever encountered. The
United States Senate Committee, in its re-
port, states that the Union Pacific termi-
nails at Omaha and Kansas City were worth
at the lowest appraisement s15, 600 600. For
the use of such property the sum proposed
to be paid was utterly Insignificant. Gould
says there is no reason to apprehend that
this matter would unfavorabiy affect the
Presidents agreement.
THEY WILL TAKE LEGAL PROCEEDINGS.
CHICAGO, December Both. = President
Miller, of the st. Paul road, commenting
on the statement made by President Dill
Ion, of the Union Pacific, said this evening
that he was glad to hear that the tripartite
arrangement was still in force, as nearly
everybody else had thought it was dead.
If it is still in force, he is at loss to know
how the traffic agreement between the
Union Pacific and Northwestern roads can
stand. By the terms of one, the other
cannot exist. The st. Paul road, he said,
will endeavor, through legal proceedings,
to enforce the contract for the use of the
bridge terminals.
President Cable, of the Rock Island, ex-
pressed similar sentiments.
Neither he nor Mr.. Miller would ex-
press an opinion as to wether their con-
facts with the Union Pacific were in viola
ton of the regulations of that road to
the Government. What steps they have
taken regarding legal proceedings are also
kept quiet. Both will attend the Presidents
meeting in New York, and it is thought
they are reserving what they may have to
say until then. Still, the general impress
sion seems to be that Gould will gain his
point in keeping the Rock Island and st.
Paul out of Omaha. If he does, it is not ut
all certain but that they will carry out
their original project of building an indie
pendent bridge.