New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-28
As VIEWED BY JAY GOULD.
oGznK ABOUT THE FINANCIAL SITUATION.

- WORLD-MR- ADAMS AND The uNlON
esuuc-yoErRY AND BUSINESS METHODS
I AN OPINION ABOUT THE TRUST STOCKS
nv Gould came into his library, where a
0Auns reporter was waiting to see him, last
-. with look of calm satisfaction in every
M AZ his face When he sat down, his posture
indicated happy content which he is not &C
oustomed 10 display 1t had evidently been a
nleasant Thanksgiving to him. but he gave no
suecial reasons why this should be so, and the
couversation confined to purely business sub
iects. Through it. however, ran threads OF
reminsence and humor which were refreshing
az Shey were rare. Mr.. Gould expressed the
utmost confidence in the future of the country
and its railway interests and declared that sound
railroads would emerge from the recent financial
troubles with brighter prospects than ever Mr.
Gould was asked first whether there would be
any further changes in the management OF the
Jlnisn Pacific He answered:
enc further changes are contemplated. MI
DilloN viii devote himself to the building up OF
She property, and his practical knowledge ana
shororCh honesty will soon have their effect. His
nerfect familiarity with the road will make MS
task easier than it would have been in an entirely
nav and untried business. Mr.. Dillon is an Old
NAN as you say, but at the same age Commodore
Vanderbilt was king of everything, and MI Dill
In is strong and vigorous in both nina ana oody'
In fact / think he has been growing younger
during the past few weeks. l could not help
king reminded, after the meeting In Boston yes
tsrday, of the first time Mr.. Dillon and took the
management of the Union Pacific That was in
1874 or 1875 and the stock was selling around
a5 or 40 Under his presidency the company
WAS made 70 earn dividends and the price OF the
stock advanced to l20. The recent management
was in Office just about the same length of time
We WERE and the stock has been down to about
the old point We have returned TO the manage
ment to save the property from complete wreck.
CHANGES SINCE IA.
.Tbe conditions are entirely different from
What they were the first OCCASION Then
Omaha was a. small place with few thousand in
habitants; it is now large city with popula-
ton of about 10000. Grand Island and Chey-
enne were merely stations, and now they are I'M
pcrtant places The Union Pacific has earnings
Of $4O,00o,000 a year and its terminals were
estimated by a Congress commission to be worth at
least 81 900 900. / should not have gone into
the mana cement again if had not known that
we lad something to bank on
In regard to the address of Charles Francis
Adams in resigning the presidency, Mr.. Gould was
somewhat reluctant to speak. 1--WE did not see
it." he said, until we were on the train on our
return. Mr. Sage was extremely indignant. and |
doubt if he would have entered the board If he had
heard the address | surprised at the tone of it.
for when Mr. Adams came to me last week he
thanked me for my efforts to strengthen the COM
pany. His statement about the harmony in the
board during his administration is not wholly
correct The fact is as | understand that the
directors really knew very little about what the
president was doing. There is a piece of road
out in Utah, graded and ready for the rails. and
although it is 80 miles long the directors
knew nothing about it, There is another piece,
eighty miles long. in Southern Kansas. on which,
] believe. the rails have been laid. II does not
connect anywhere with the Union Pacific system,
and the directors surprised to know that
, the company was building it. These extensions
and the purchase of the Oregon Railway and
Navigation, which / think was wise one. have
created a considerable floating debt. but it can
easily be handled. What is specially surprising
is the addition OF about 1000 names to the
payroll. and i haven't vet been able to find any
one who can explain the increase.
Mr.. ADAMS A THEORIsT.
"The fact is that the road has been run on
principles that have never before been carried into
practice They have appeared in books, / be-
Eeve, and occasionally in poetry. The difference
between the two presidents is very simple, but
very great. Mr.. Dillon is an honest, practical
railroad man, while Mr. Adams is a theorist
When / was in Kansas City last | heard that
ne PERSONALLY owned controlling interest in the
stockyards there, and that the railroad was
bringing live stock at rates that barely covered the
cost of transportation, while the stockyards earned
81 900 900 in the last year. That is something
NE never permit lines. No officer of any
of our companies have an independent in
terest in any enterprise which may Affect the
railroad. We always expect to get our returns and
our salaries-if nave any-from our interests
in the properties.
THE change in the management of the Union
Pacific nsures harmony among Western railways
and the formation of a strong association on
about the basis suggested by Chairman Walker.
1t was the Union Pacific that broke up the
'Gentlemen's Agreement although Mr.. Adams
was active in forming it. Ii will be the purpose
of the new association not much to advance
rates as TO enable the railroads TO get those now
supposed To be in force. Instead OF
q great paraphernalia of agents and
solicitors. the association will have central
agencies in the large cities, and the freight can
he routed under the direct orders OF the com
mittee chosen by the association. The saving
by the abolition of independent offices will be
extremely large, while rates Will he easily and
firmly maintained. Railroads will get the rates
in the present schedule, and traffic managers VIII
have time for other work than listening 10 yarns
about rates by some other line
"Such an agreement will preserve competition
for it will tend TO give the little roads chance to
live while the present method is driving them
into the control of the larger systems. think
every State in the Union ought TO pass laws
compelling the observance of al agreement on
that basis.
A meeting of Western railroad officers Will be
held very soon, probably next week, but The
certainty that such an association will be formed
has already had its good effects. western rail-
roads are getting little better rates, and the
feeling among the Eastern lines connecting With
fh. Irninn Pacific is better We shall all work