The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-12-25
OREGON THE WEAK SPOT.
charies Francis Adams Dethroned by
Losses i'm That State.


The weak spot in Union Pacific for the
last two years has been in Oregon. 1t is in
this part of the system that most of the
embarrassing complications have occurred
during Mr.. Adams administration. in
the management of which it has
shown its greatest strength. as we'll
as its greatest weakness. Here was the
Union Pacitic's most promising source of
revenue; almost of consequence il was It's
most vulnerable point, 10 be strengthened.
fortined and constantly guarded. But TO
pursue the figure it was in charge of
quartermasters, its defences were left
uncovered. and here one day Mr.. Gould
and few friends sauntered leisurcly in
without firing a gun-Mr Gould old the
reporter, who asked him the other day if
he had been cunning for Wanamaker, -
that he did not own gun-and took peace
able possession. The weak point was a
floating debt, incurred by the Union Pa
CHIC in purchasing, through the Oregon
Short Line, majority of the stock of the
Oregon Railway & Navigation, which was
under lease to the Short Line. The pur-
chase itself was wise one, as il resulted in
putting per cent. rental practically on
) per cent. basis. Provision for il was made
in the issue of a collateral trust bond
at 5 per cent, with the stock a. 81, uFity
and between seven and eight millions of
the issue had been sold. leaving about
five millions in the treasury. The entire
issue has been subscribed for, but the mis-
take was made of holding the remainder
for higher prices.
Some things happened. too. that no fore
sight could have provided against. The
elements combined together to laugh TO
scorn the wisdom Of man. The winter of
1850 was so free from snow, upon which
the helds of Eastern Oregon were depend
ent for irrigation and moisture, that
the wheat crop of 1889 was almost tot.d
failure, and the Navigation Company
which had always derived large traffic
from this source, suffered an enormous loss
in net earnings. There was no wheat to
haul The snow came the following win
ter: came in such volume, with
floods. landslides and blockades, as
TO put stop 10 all buSl-
ness for weeks at a time, leaving the
road and equipment in u condition unht
10 meet the increased demands upon them
for CARRYING the enormous crops of $50
First they had no wheat 10 hsul; next
they had no means TO haul 1T. Even these
disasters might have been tided over
but for the added complication of tight
money, which increased the difficulty of
CARRYING a floating debt for which money
has TO be borrowed upon collater.I rapidly
diminishing in value.
The Navigation Company earnings
had fallen Short of the rental about $50
600 in tssS and S-S6.0G0 ia lsSe. and this
dencit babe fair TO be increased TO 81 30, coo
for the current year The stock, which
had held i'm the neighborhood of pr upon
the strength of the lease. which, if binding,
gave il an assured per cent, showed
signs of weakening under the pressure of
decreasing net earnings, and under small
sales dropped OFF and lodged with : "A
dropping tendency among the eighties. 1t
grew more and more difficult 10 borrow
money ON aeolIateral trust bond which had
only this stock as its security.