The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-11-20
REBUILT UNION PACIFIC.
Made First Glass System of Dismem
bered and Long Neglected Line.

Made First Glass System of Disnem-
bered and Long Neglected Line.
The original Union Pacific company
was created by act of congress during
the war ard the credit of the United
States gOvernme emit, to the extent Of
many millions of dollars, was extended
to aid In building a great railroad
across the deserts and through the
mountains. The road was mpIeted
/ in 1859 and it was the cause of the
greatest scandal in the history of the
American congress-the Credit Mobil-
Ter. which smirched the regulations of
many congressman and led to the -ex-
pulsion of two members.
The road was operated with varying
success and many scandals until 1893.
when it went into the hands of receiv-
ers at about the time when the courts
took possession of the Atchison rail-
road, the Northern Pacific and many
others because business had fallen to
such a low ebb that they could not pay
their debts The road remained in the
control of the court until 1897. In that
interval of four years there was a
controversy in congress and among
f1nanciers over the subject of a settle
ment of the Pacific railroads debts to
the government, amounting to about
"a millions. The financiers. seeking TO
resume control of the Union Pacific
road, wanted the debts scaled down
while the extremists in congress de-
sired to have the government take pos
session of the properties and operate
them Finally a compromise was
reached, the governments loan to the
company was fully secured and re-
organization was effected in 1897
which put the systeys1 under the con-
troll of the present Union Pacific COM
pany. William A. Harris Of Kansas,
then in the United States senate, was
largely responsible for securing for
the government many millions more
than would have been obtained but for
the persistent work of the Kansas SEN
ator and one or two others
Rebuilding the System.
The new company Immediately set
to work to recover branches and divi-
siOns which had been separated from
the system and TO reconstruct the road.
Immense sums were spent in this pro-
cess of rehabilitation. Many eminent
fnanciers and railroad men believed
that too much money was going into
the road and that it would again be
forced into receivers hands. But the
era of prosperity for the whole cOun-
try began at about the time the
Mobilization of the Union Pacific was
and the years which have sue
ceeded have fully justified the course
of the men who were in charge.
E. H Hartman has been the organ
izing and inspiring genius of the sysr
plans have been gigantic and they
have been carried forward with energy
and success
Having made a first-class system out
of the dismembered and long neg
lected system, Hartman began TO
reach out. He bought. for the Union
Pacific a controlling interest in the
great Southern Pacific system, for its
connections on the Pacific coast. When
this purchase was made the popular
idea was that Hartman would skin"
the Southern Pacific in the interest of
the Union Pacific. Instead of that, ne
has brought both systems up to a high
standard of efficiency and profit yield
ing and now has put the Southern Pa
cific where it has never been before
in the list of dividend-paying compan-
les