New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-12-25
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Mr.. Adams's original plan for rescuing the com
many from, impending bankruptcy when he took
The presidency in 1854 was suggested by the eA-
,sting conditions and very simple. II was 10
cxtrjcate il from its embarrassing complications
with the Government by procuring the passase oil
q hill refunding the debt at a lower raIe IMAM
per cent and repeating the unfrendy fes'r4c'l'c
legislation which hampered its action ana lorceu
il upon unusual and costly eXpedlents IN us ue-
velonmcnt 1t may be doubted if this plan would
have succeeded. ANY one Of the funding DllIs oi
the last six years would have added to the I'M
mediate burden of the company, and It IS doupt-
full if sufficient compensation for TINS cOud nave
been found in the relief from the restrictive Ic3lS
lation Ii may perhaps be consldered lortuia"
on tho whole that the feebly conducted Washing
ton campaign failed. Once or twice Congress was
on the point of passing funding bill, an I'M
questionable majority being in favor Of il, but
sneaker Reed had not then established the
nrincnlc that the function of Congress IS TO
Iooisatc and it took only two or three AndeIsonS
"a block lis passage With the failure OF the
Cultivate bill in the last Congress. effort In That
direction ceased and the present Congress has been
left to It's own devices.
Since the abandonment OF the funding OH
scheme Mr. Adams has been working upon an
entirely different plan. III the carrying out OIL "hlch
he was suddenly interrupted the other day by the
sppearancc of Mr.. Gould with writ Oi eJectmeh'.
This was in brief, 10 shape everything toward
meeting the emergency which would come WIN
tie maturing of the first and second mortgages
The latter being the Government debt, III 1897.
Between $s0000,G0O and SJO,OOOOOO would lheh
have 70 be paid or refunded. Payment Of course
would be impossible il would be a question simply
of refunding on the best terms attainaDle
of lao ma
last two or three years. as appears from the an
pual reports has been the consolidation Of various
branches with separate subordinate systems, each
having a standing and credit Of it own, but with
the Union Pacific owning u majority Of the stock
and a controlling interest There now three
of these cOnsOlidations-thc Omaha and Republican
Valley made up of Nebraska roads, Of which the
Union Pacific owns practically all the stock and
all the bonds; the Oregon Short Line and Utah
Northern and the Union Pacific Denver and Gulf.
OF The two latter the Union Pacific owns little
more than a majority of the stOck-enOugh for
control in each One result OF these consultations
has been TO simplify the organization Of the
system. a more important one is gained in the
means they furnish by their Independent orsaniza-
ton for carrying forward development which the
parent company is forbidden by law 10 undertake.
Upon two Of these subordinate systems, the Short
Line and the Denver ana GuII, Alr. ADAMS was
placing great dependence. He had faith in their
capacity for making large net earnings, and looked
10 them with the utmost confidence for profitable
returns. The third the Republican Valley was
made up Of corn roads" of uncertain revenue
and was not much counted All its securities
being in the company's treasury, its failure TO meet
fixed charges was not OF vital consequence.
Could the two systems first named be put on a
dividend-paying basis, as seemed quite probable
their credit would be so enhanced that there
would be no difficulty in negotiating their Sc
curites and procuring funds for the further ex-
tension and development of each in its own terri
tory, and the parent company, the Union Pacific
would be in position the strength Of which
would be in these branch systems instead Of in
its main line. IL would be in effect a railroad
trust holding in its treasury the bonds and stocks
Of It's dividend-paying branches. AT the maturity
OF the debt TO the Government its payment would
be only an embarrassment TO the creditor: the
iogicai result would be some sort Of refundine
scheme. and the debtor company upon the credit