The morning call., 1890-12-31
THE OMAHA BRIDGE.
Statement Concerning the Lease Between
the Union Pacific and Other Roads.

s.@
CHICAGO, Dec. 3O.-The action of the
Union Pacific In debarring the Chicago.
Milwaukee and st. Paul from entrance into
Omaha over the Union Pacific bridge was
surprise to the st. Paul officials. For some
time they have been advertising that. be-
ginning Sunday, they would run passen-
ger trains through to Omaha, but the first
one under the new schedule was stopped by
the Union Pacific people at the bridge In
an Interview last evening, President Miller
OF the st. Paul road said: Last May our
company entered into arrangements with
the Rock Island road by which we were to
build bridge across the Missouri River at
Omaha for our joint use. As soon as the
Union Pacific people heard of this, and 1
refer particularly to Sydney Dillon, who is
now Prt sldeht, and General Dodge, who is a
Director, they sought conference with US
and told us there would be no need Of
our building a bridge, as they would be
glad to let us use their bridge for a consider
alton. Subsequently, a contract was drawn
up by which our road and the Rock Island
We're to run trains into the Union Depot at
Omaha ever the Union Pacific bridge. This
company was to pay $4,000 year and its
proportion OF other joint expenses. The
contract was approved by President Adams
and the Board Of Directors Of the Union
Paclflc, and there can be no question as to
Its validity. So far as our freight business
is concerned we have been operating under
the contract since July, but as soon as we
gave notice that we would begin to run
passenger trains we were shut out without
explanation. The contract Is legally bind
ing and | don't see how the Union Pacific
can set it aside" The Rock Island con-
tract was similar to that of the St. Paul,
except that it embraced the joint use OF
tracks from Omaha to Lincoln. On strength
of the contract the Rock Island has built fifty-
two miles of road between Lincoln anG Beat
rice connecting with its main line. The Union
Pacific was thus to obtain a southern outlet
through the Indian Territory and become a
competitor for traffic to and from the south
west. Presidents Miller and Cable had a
conference yesterday, but both declare that
they have not decided upon any definite
course of action. They were firmly of the
opinion, however, that they could not be de-
priyed Of the rights accorded them by the
contract even though there has been
change in the management of the Union
Pacific.
An opinion was expressed here yesterday
that the hand of Jay Gould has been in all
Of this. He owns the Missouri Pacific, and
that part Of the contract which gives the
Union Pacific line into the Missouri Pacific
territory is not to his taste. There is feel
ing In railway circles that this affair NAV
prove death blow to the presidents agree
Dent, for President Miller said in an inter-
view: III that contract Cannot be made to
stand there Is no use fooling away time with
traffic agreements.
LEGAL MEASURES PROPOSED.
President Miller of the ST. Paul road,
commenting on the statement made by
President Dillon of the Union Pacific, said
this evening that he was glad to hear the
trlpartite agreement was still in force, as
nearly everybody else had thought 1t was
dead. If it is still in force he is at
loss 10 know how the traffic agree
mnnt between The Union Pacific
and the Northwestern roads can
stand. By the terms Of one the other can
not exist. "The ST. Paul road" he said,
viii endeayor, through legal proceedings,
to enforce the contract for the use of the
bridge terminals" President Gable of the
Rock Island expressed similar sentiments.
Neither he nor Mr.. Miller would express
opinion as to whether their contracts
OF the relations of that road to the
Government. What steps they have tax
en- regarding legal proceedings were also
kept quiet. Both will attend the Presidents
meeting In New York, and it is thought
they are reservlng What they may have to
say until then. Still. the general inn rrssion
seems TO be that Could will gain his point in
keeping the Rick Island and st. Paul out Of
Omaha. If he does, it is not at all certain
That they VIII carry out the original project
Va HoAANiAAS al iitN PcbuEhb plt tSC.
A COMPETING LINE.
NEW YORK, Dec. 30-President Dillon of
the Union Pacific made statement to-day
IN regard to the Omaha Bridge trouble be-
tween the Union Pacific and the st. Paul
and Rock Island roads. May l, 1890 what
purported TO be lease of Union Pacific
bridge terminals at Omaha, and the use of
its main tracks to the westward limits of
Omaha, was made to the St Paul and Rock
Island roads. These leases were for con-
sideration Of about half what the company
received last year from its bridge tolls.
Acting under these leases of our terminal
at Omaha, the Rock Island advertised an
open competing line to the Union Pacific
for lis whole length from Omaha to Ogden,
thus Saralleling the Union Pacific for its en-
tire leugth. The Government Directors re-
quested 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.
In regard to the statement OF President
Miller that the bridge trouble would inter-
Gould said: :" 1t is a different matter. This
has nothing to do with the maintenance of
rates."
RIDICULOUS PROPOSITION.
Jay Gould later said the alleged leases
with the Rock Island and St. Paul were, as
business transaction. the most ridiculous
and absurd he ever encountered. The
United States Senate Committee. in its re-
port, states that the Union Pacific terminals
at Omaha and Kansas City are worth at the
lowest appraisement $l5,000,000. For the
use of such property the sum proposed to
be paid was utterly Insignificant Gould
says there is no reason to apprehend that
this matter would uufavorably affect the
Presidents agreement.
UNION PACIFIC STOCK.
Oow-Jones' Agency issues the following:
The people who have been right on the
Union Pacific say the price is liable to 90
somewhere between A and As, but unless
there is an entire change of programme it
viii not cross 46 until after it has been be.
low 40.