Omaha daily bee., 1897-01-23
PRESIDENT CLARE<'s TESTIMONY.
| Statements to the senate Committee
| on linton Pacific Settlement.

Statements to the senate Committee
on Union Pacific settlement.
President S. II. II. Clark Of the Union Pa
cihc was given the complete news from
Washington by a Bee reporter. He read the
dispatches with interest and remarked: !:
We'll that looks like business" But he
positively declined to be interviewed on the
subject
1t is known that the plan adopted meets
with the appreciation Of President Clark,
who has long desired to have the govern
ment debt adjusted, so that the Union Pa
ciic might be operated as other railroads,
free from restraint by the government.
Apropos of this subject the testimony OF
President Clark given before the commit
tee of the United states senate, which was
considering the government debt of the Pa
cifc railroads at Washington in March, 1896,
is of interest. He expressed himself quite
plainly on the matter at that time, and 1t
Is presumed that his views nave not since
been changed.
In answer to questions by Senator VOL
colt, President Clark testified that he had
been connected with the Union Pacific since
June, 1867, with an lntermisson Of a period
between October 1884, and November, 1890,
during which time he was connected with
the Missouri Pacific. He testified to the
friendly relations existing with all lines
connecting with the Union Pacific at Council
Bluffs, especially with the Northwestern.
with this road the relations were more
harmonious and somewhat more advan-
tageous to the Union Pacific property than
exist with the other companies connected
with the Union Pacific. Senator Wolcott
endeavOred to show that the influence of
the Chicago & Northwestern railroad had
been conspicuous in the reorganization plan.
but failed to secure from President Clark
an admission that there was any significance
in the relations existing between the two
roads.
In reply TO a question concerning the earn
ing capacity of the road President Clark
said: with the conditions existing today,
and with the future prospects as they appear
to me, the 1,S22 miles Of the Union Pacific
road Will earn in the neighborhood of $4,000
900 net annually. The road earned more
last year QS95), but that was because of the
exceeding close economy practiced. The
receivers did not buy steel rail in 1895,
and they did the business of the road at the
lowest possible expense in all it's depart
ments. That cannot continue with good
judgment for another year. We need steel
rails"
What would be your counsel and advice
as to the best method of settlement of the
government claim in the interest of the gov
ernment?" asked Senator Wolcott
In reply President Clark said: I'm my
humble opinion, as a layman, a commission
of straightforward upright business men
ought to be appointed by congress, who
should go into that country examine 1t
thoroughly, going back to its construction
taking into account all those things that
have occurred and then make a report of
the facts. If l were one of the security
holders l would be willing to say in ad-
vance that | would take the judgment of
those men for my portion"
Continuing he said: 81 claim that the
government debt has been paid. / feel that
the government debt has been paid in the
cheap transportation which the government
has had as against what it cost before the
road was constructed. That Is matter of
equity and justice, | consider. So with the
government lands. Millions of acres have
been brought into the market by the con-
stfuction of the railroad, i mean that the
government has been benefited a great deal
more than the road has cost
How, in your opinion, should the govern
ment debt be metz" asked Senator Wolcott.
You know more about this property than
any man living and wish you would give
us some suggestions. Suppose you owned
the debt, MIR. Clark, what would you take
for it?"
81 believe that the government can afford
to be fair in the matter" said Mr.. Clark.
What would you take?" repeated Sena-
tor Stewart.
Il would take the principal, II could get
1t, and | would scale the interest to a fair
figure" replied Mr.. Clark,
'You would take the principal IN cash,
How would you scale the interest? Would
tor WClcott
II think that the better plan. That Is
the only business way to do it," replied MIR.
Clark.
'Mr. Mink was Of the opinion that the
bonds secured by this mortgage "a second
mortgage) would be worth about 36 cents
on the dollar, Instead OF Offering the gov
ernment a mortgage worth 85 cents on tho
dollar do you not think II would be n better
proposition for the company to find way
to pay that 80 per cent in cash instead OF
in bonds worth So per cent?" asked Senator
Wolcott..
"If the company could do so. yes" replied
Mr.. Clark
President Clark further testified that the
1880 miles of the Union Pacific cost some
thing over 100000 a mile, or a little over
800 900, 900, He added that the property
could be duplicated now for $50 900 mile, or
10000 600 He believed that only 20 per
cent of tho roads business came from the
country adjacent to it. the rest being through
business Therefore. he believed the value
OF the Union Pacific depended largely on
amicable relations with connecting lines.