New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-12-25

WHY was it, not? Mr. lIocomb had been
the first general manager Of the Navigation Com
pany under Union Pacific management lie was
brought in by Thomas j. Potter. railroad man
aver whose success in the Chicago, burlington and
Quincy, and during the very brief period of his
management of the Union Pacific entities him -
the place universally conceded 10 him the
best Illustration Of the practical roilroad man
brought up 10 tie business and promoted from
the ranks Mr. {. j. Smith, who succeeded llol-
comb in the Navigation Company. came in with
Mr. Potter and Mr. RcSsequirc, of the Mountain
Division was also one Of his selections. These
three, themselves practical men and selected by
the typical practical man. were in command a.
the points where the Union Pacific plans went 10
pieces Mr.. Ilolcoinb having been promoted 10 be-
vice president and general manager Of tie entire
system upon the death Of Mr.. Potter. IL cannot
be said that the failure Was due solely 10 the
snow bockadcs and landsldcs which 50 seriously
Lnteriercd with the business Of the Oregon Line
in December, 1889, and January, 1890, though
this was powerful cOntributOry cause Of the
disaster. In February the, worst was known con
corning the condition Of The roads and the pros
poets for business If it was not known it must
have been because Of gross incOmpetency Of the
management II was In full view Of The actual
the most confident assurances that everything
was coming out right, that the enormous wheat
crop, Of Eastern Oregon would furnish tranic
enough to make good more than all the losses
from the winters disasters, and that there was
a good prospect of the Navigation Companys
earning its rental, Of which il had fallen short
over 100000 in 1889.
Mr. Adams's apprchcnsions being quoted by
these assurances, lie proceeded with bis plans. III
stead OF selling all the Short Line collateral trust
bonds which were quoted at 90 and had all been
subscribed for. and with the proceeds taking care
Of the floating debt, only enough were sold 10
provide for present necessities and the remainder
held for higher prices. The mistake was dIscov-
cred when it appeared at the end Of March that
the Navigation Company and Short Line together
had fallen OF over 100000 in net earnings, and
the former had failed by 81 900 10 pay operating
expenses Even then the Western managers talked
wheat crop and expressed entire confidence that
all losses would be more than made up by the end
of the year. In April the Short Line began 70
pick up little but the Navigation Company grew
worse and worse so that at the end Of the first
six months the two were more than 100000 be
hind the net earnings OF the same period in 1889;
and the Navigation Company, having earned only
S7I 900 above operating expenses. had about s.
5OO,OOO nct 10 earn III inc IeHalninS nun year 10
make good It's rental. The Western managers,
apparently undismaycd. continued to talk wheat
crop
And the wheat crop was enormous. They
right in their calculations on that point Bat
what happened then Why. these practical rail
road men who had counted on the enormous crop
ever since the snowfals Of last winter. suddenly
found when the hsrvcSts began 10 come in Just
as they expected, that they had made pro
vision whatever for hauling them. Their equip
mcnt broke down under the first strain. and for
weeks past the Oregon newspapers have been filed
with complaints of the incompetent railroad man
sgement that neglected TO provide for traffic