The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-02-01
THE UNION PACIFIC RATE WAR.
Gossip About the Extraordinary De-
parture Taken by the Road.


parture Taken by the Road.
OMAHA, Jan. 3l.--The recent pronounced
changes made by the Union Pacific Rail-
way Company in the passenger ticket sales
and in the reduction of operating ex-
penses have appeared to some per-
sons on the inside to mean nothing
more than mere temporary movement.
1t IS believed by many men of influence
and railway acquaintance in this city that
the directors and officers Of the company
have about got ready to throw the road
into the hands of the government and
wish to get as much revenue out of it as
possible before that time comes. This
conclusion is supported by facts. 1t will
be remembered that when the Union Pa
citic was built. United States bonds to the
amount of $50, 10000 were issued during
the period of its construction, from 1864 TO
1863. These bonds were intended to aid
the road to obtain capital enough to I'M
dertake what seemed to be great burden.
They were to run thirty years, with
6 per cent. rate. In July, 1894,
the first Of them will fall. due.
The company is utterly unable
to meet its obligations in this matter, and
has again and again asked congress to ex-
tend the time of these bonds. The recently
issued report of Government Commits
sioner Horace A. Taylor recommended an
extension to 100 years and a reduction of
the rate of. interest to per cent. The
death of Mr.. Gould, and the generally in
terpreted verdict against corporations as
given in the recent election, have led the
directors to make ready for the inevitable
by securing as much profit as possible
from the remaining months Of the con-
tract. The feeling against the Union Pa
cific in this state is most bitter, even fanat-
ical. and the same may be said of other
Western states. They claim that some
thing about the road must be wrong when
it has cleared So 100000 per year for the
last decade and has not paid off a penny
OF its great government debt. The repre-
sentatives of these people will not dare to
vote for such great extension In con-
gress as is asked for, and it is their evident
purpose to force the railway into the
hands of receiver and close up it's affairs
as private corporation, or even dissolve
all government connection with it and
treat it as any other creditor of the gov
eminent
CHICAGO, Jan. 31-The Union Pacific is
accused of cutting passenger rates between
Ogden and Missouri to an extent which
will almost certainly result IN an open re-
duction Of 80 per cent. The regular rate
on such tickets is $40. The Union Pacific
is accused of placing large blocks of tick
cts in brokers' hands at prices which en-
ables them to sell at from SIS to $2l. One
scalper informed competing lines, and a
number of tickets were obtained at the
prices named. An open reduction in the
rates to at least $40 is anticipated before
the end of the week. In the present con-
dition of transcontinental lines such re-
duction might we'll be the precursor of a
rate war which would take rank as one Of
the hottest in the history of railroading.
New YORK, Jan. 31.-A syndicate COM
posed of Lee. Higginson & Co., Seligman
& Co., and Boisseyan & Co.. has pur-
Chased about 81. 100000 OF Oregon Naviga-
item consolidated 5 per cent. bonds and
proportionate amount of Union Pacific 5
per cent notes to be cancelled.