St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-12-31
DILLON TALKS.
He Explains His Position Regard
ing the u. p. ImbrOgiio.


New YORK. Dec. 3o.-President Dill
Ion, of the Union Pacific. makes the fol-
lowing statement, in which Mr.. Gould
concurs:
The status OF the Union Pacific and
the st. Paul and Rock Island roads at
Omaha may be summarized as follows:
In 1888 4 traffic contract was made be-
tween the Union Pacific and the St.
Paul and Rock Island companies, known
as the ''tripartite," by which business
was to be interchanged between the
three companies Oh favorable terms at
Council Bluffs. THIS contract was for
twenty-five years. and is still in force
and being acted upon. On May l. 1890,
what purpOrts to be lease of the Union
Pacific bridge, the tefmin ais at Omaha
and the use of its main tracks to the
westward limits of the ity of Omaha,
was madeby two separate leases, one-half
to the st. Paul and the other half to
the Rock Island. These are leases for
nine hundred and ninty-nine years for
Il consideration Of about one-halt of
what the company received last wear
from its bridge tolls on their business
Acting under these leases Of our termi-
mails at Omaha. the Rock Island has
advertised to open competing line to
Fhe Union Pacific
for its whole length from Omaha to Og-
den. thus paralleling the Union Pacific
for its entire length. To Illustrate this,
suppose road built from Buffalo par
allel to the New York Central from
Buffalo to Spuyten Duyvll and then
using the New York Central terminals
i'll New York city for SAT, 800 year, for
its competing line. The existence
the new members of the board.
As soon as they learned that
they existed. they were submitted to
Judge Dillon. who advised the directors
that under the charter OF the Union Pa
clfc these leases were ultra wires and in
violation OF the partnership and rea-
tons between the government and the
company. 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. 1t
will be the earnest effort of the direct
orS of the Union Pacific TO cultivate the
most friendly relations between the st.
Paul and RGck Island companies for
mutual interchange of business at
Omaha and Council Bluffs.
In regard 10 the statement of Pres-
dent Miller that the bridge trouble
would interfere with the presidents
agreement, Edwin Gould said: 1T is q
different matter. This has nothing to
do with the maintenance OF rates.
Mr.. Gould, IN conversation with an
Evening Post reporter, said that bridge
and terminals OF their own at Omaha
would cost the Milwaukee and Rock
Icln nd 0f - It, Al,
Union Pacific estimated its facilities of
this nature there at nearer $40, O0O. 600
than S5,000000. Were the so-cal!ed
leases to be recognized as binding, and
their provisions carried out: if the
splendid privileges of the Union Pa
cific's bridge and terminals at Omaha
were granted to the Milwaukee and the
Rock Island for a consideration so gro
tesquely dispropOrtioned to their value,
and finally the Union Pacific, in conse-
quence, to be paralleled for its entire
length by a rival road. he would (contin-
ued Mr.. Could like to know what the
governments % per cent of the
earnings of the road would amount to.
Theses alleged leases, declared Mr..
Gould, were, as a business transaction,
the most ridiculous and absurd he had
ever encountered in his Whole course of
railroad experience. The FRYE com
mittee of the United States senate had.
in its report upon the value of the Union
Pacific property, stated that the terlni-
mails of the road at Omaha, Denver and
Kansas City we're worth at the lowest
appraisement $l5,G0G.C00 For the use
of such property the sum proposed to be
paid by the Milwaukee and Rock Island
roads was utterly insignificant.
Mr.. Gould said in conclusion that he
saw no reason to apprehend that the
differences between the three roads in
regard to this matter would unfavorably
affect the agreement lately entered into
by the presidents of the Western rail-
roads. 1t was. he said, to adjust Just
such difficulties as these that the COM
pact had been called into existence.