Nebraska Newspapers

    IViAHA DAILY BEE WEDNESDAY , AUGUST 6
CAPITAL PRIZE $75,000
M/Tlcketa / only $5. Shares In ProyortlonTs *
lonlsiana State Loiter ? com ,
ttrtifv * af IM tvpentts tat
ranaementt far all thr Monthly anil Seml-Annua.
Dravingt cf the Louisiana State Lottrry Company
and tnftnon tnanagt and control tht Drautnyi
tHtmrtlwtandtkattMtamt art eondueled te < tl
) unatt//arnet .and in goodfuUh toward all piw
lift , and wi authorise the company to un thit ter
titeatt , uith/at-timiltt of evr tignnturu allat\tt
in M advtrtuementt. "
Comnmofn *
Incorporated In 1863 far IS ftun bjr the legblAlan
f tt dnntloaftl and oharlUbl * purpotw with cop
Ikal oft 1,000,000 , to which * recent rand ot OTCI
IJM.OOO tiM rinco b * n ftdded.
Dy n ovcnrhdmlnfc popuUr vet Ita < " * .
WM miula part ot lb rrwcnt lUtt conttltnUoo
6opt d December id. A. D. 1S78.
The only Lottery over voted on and en
doraed by the people of any State.
It DOTCT mica or portpones.
Its grand single number drawings takt
place monthly.
A splendid opportunity to win n Fortnno
Eighth Grand brnwlntf Gloss H , In the Acad-
amr of Music , New Orlontw , Tuesday , Aug.
12lL , 1884 ITlut Monthly drnwlng.
CAPITAL PRIZE , $75,000.
100,000 Tickets nt FIve Dollars Koch , Frw
tlonfl. in Fifths in proportion.
UST OK PUIZK3.
1 CAPITAL PIIIZB . . . . . . . r ,00l
1 do do . > ,00t
1 do do . 10,001
s PHIZES or toooo
6 do 000 . 10OOC
JO do 1000 . IO.OOC
SO do MO . 10,00t
100 do 00 . 20.00C
BOO do 100 . EO.OOC
COO iV ) N . 000
1000 do t . U.OOO
AtTUOIIMATION r IIl3.
D Approximation ptl a ol 7M > . 8.T5C
0 do do 600 . i.60C
B do do 1M . , C
15 rrtwj , AmoantlnK to
Application for nt to dabs should bo nude onlj
4o th offioo ot ths Company In New Orleans.
For further Information writ * clearly Riving fan
ddrow. Make P. O. iron jr Order * payable uit
ftddros * Bcglgtend Letter ) to
tISW ORLEANS NATIONAL BANK ,
New Orleans , La.
foetal Kotoa and ordinary letteri by Mall or Kx
pron ( all mm * of ti and upwanU by ExproM at oui
.xpnato )
A.DADrniN ,
or it. A. DAUPHIN. Now Orleans La.
097 Seventh 8k , Wash ngton. D. 0.
rrecia
HAS NO UPERIOR.
The Steck is a Durable Piano ,
THE BTBOK IIAS SINGING QUALITY OP TONE
FOUND NO OTHER PIANO.
SOLD NLY BY
WOODBRIDGE BROS , ,
OMA1IA NEH.
DOCTOR
IATHITTSER
017 St. CharlcB St. , St. Louis , Ho.
A n * uir crn1u U > cf lo Me < lltkl Collrcvi , hn liven longer
co/riedlnUe ; i cUUrxftifnrilor C mo NIC , NntotrM.Hicm
dud Jttx B t > iiiAiu4b ji nor ollitr Diftldaala gt. Lo U ,
M rltjr f > tprr v * w nd all old | fldent k&cw.
Nervous Prostration , Debility , Mental nnd
Physical Weakness ; Mercurial and other Adec *
tlons of Throat , Skin or Cones , DIood Poisoning ,
Old Sores and Ulcers , ira trraU-d with unpinllclod
urrr ioa Ut t iftrnUUo prloclpUi. tf Vlfrrl * tlf.
Diseases Arising from Indiscretion , Excess *
Exposure or Indulgence * * Mch i-roducc * > m of th
Jot to wi of tflitUi crrtomtitii , dtbllltr , dlinneii of * Uhl
md dtfvcth * memory , i Iraplri on tbo Ure. } h ilctl docaft
ftterilontvtba toclcty or lcmiUrconfuij B of tdrutcta ,
rendering Mnrrinco Improper or unhippy. an
iwrmaotBtfjreurrd. l'iuphlrtSH ( | * ( tcentb t ) > oYc ( eut
Inieil < 4 rniclepo , frr to araddmi * . Comuttatloa fttol *
flea or binall frt-e , md I ntli 4. U rile for qutultoni.
A Positive Written Guarantee
irfvi * In all eurtle etm * . U < < dlrloci ncnl ovrryvhcn.
raraphlrtt. EnptUU or Ooriuan. C4 pace * , d * .
crlbloff above dlteatoB ) in snalo or foramlo , J11EK.
RflARRBAGE GUIDE !
WOr M , Bner > > < m > lllaitrattd In tlolh nj illlllnillnr ,
C > 0eiuunejr rxwuc t kKDJ0.t > l > f co\in , X5 . TtiU l > ok
couUlai frit the curtetu , doubtful vr luauUlllre wuil U
know , A took ( ( nut | DH" I ( a ill , JlciJti , llwaur ,
tn Kvuttoi If 1U 4 lco.
UirUca on Uorllcltt "i'ood. " nrlto hundreds of
iuuU.ful mothorn. Mother's milk roiiwlna no
narch. An artlflcUl food for JnfaiiU Klimild
tcmUln KO HUrou. Tuo Ut and rntt uutrlUoua
food In lioaJUl B B _ g _ ?
or dlclmma lor
i
Urcli uud ri mln no oookluir.
llxoinurndwl IY 1'liJflilnnB.
1 Hlirtily U-lit. lld l to Vnmlnir
1 Mntliira UN ad Iriuk , I'rtno 40
BonoTorlJooirDii Uio'f nitineni of Uuiiiirc'n.'VrcS
"Fiillr 4lR > ud u 1 uullUloiii. " O.W , Bjulti ,
V.O.k'UititH.N.J. , , ,
"VJo4 It all IbUDOuli t * flwlrtd. " ir , IT. JUtdt
Slllfm , KtMft.
"No hMlt-oty la pr tiouoclcf tt ur nor to any *
thlni eit..l.-K. a. tUum , * . O , Trn. H. r ,
Will bn nt l > r malt on rprali't of tirtro In atampi.
IIOUMUK'H V001) CO. , ItnrlnrVU. .
i Uonuea'g Dar KXTU/LCT or
HAMBUEQ-AMEEIOAN
DIRECT LIKE FOll KNQtAKD , flUNOti AND
OKIUIAKY.
Ilia itcnublM ol till well-known line are built o
Iron , In vraUr-ilght oomjrtm nt , anJ re lurnlih
ed with ererjr requinte ( o mike the jmutgt bet
ue and agreeable. Thov carry the UolteU Htatc
ftnd Europ n inilU , and l n Now York * Thiin-
dij-mnd Bitundayg for llymouth ( LONDON ) Cher
txiunr , ( I'AItlH ) and U AH1IUJIO ,
Itttci : Flnt Cabin , ( V , ( OS and 176. Steerage , $20
Uenry Pundt , Mark HXOMD. r .U. Uonrof.U. Toll
Xentaln Omaha , Oronetrlctr&Bchotnteon.agvnUI
Council lilnff * . a B : UIGUAK ! ) ft CO. , Oen. I'a
Agfa. , 01 llroadvar , N. Y. Cba * . KoinUukl & Co
( ItnerU WwUin A > nU , 107 Waahlngtoo HU. Ooloa
( fO.IU.
JEFFERSOH PARR DlillG HALL
MUS. J. SCnOLLKK , Proprietor.
Day Board $4,00 Per Week ,
Kvtirtlilngnewandflnt-clui Joe cream and L m
ouade A Bjclilty. Oodee D nt . aud a
nice Cct dUU ecrvtd at al , houi .
01 North SUteentU 8tre t , Omaha. Neb
JamssHdioal Instill
Chartered by tlieStateodli ;
! nola for thccxpicaapurnohc
of clvine Immediate rellellii
all clironlc.tJriniryondpri
vutc ditcctci , Oonorrhtco
Gleet andbyphilli in ull their
complicated forrnfc , also al
dUcatei of the Skin am
Ulood promptly relieved n <
permancntlycured by reme
iliei.Uotcdln at'urli/l'enrt
, . Hj'CflalJ'rartlte , Scmlna
ht Loisenby Drcami , Pimple * on
iinti'fl > rrlini-iui > i < l , Ths npprc ) cUte it.r. ' 6) )
I j fct once u'-crt In each catc. Con ultation , per- '
wmal or by Utter , sacredly confidential , tied , f I
ITJUCI Bent by Mill and Exprcci. Nomarki on
fjuxuitc to indicate content * or tender. Adaresi , I
in. JAMES.NO. 204Wajhlnulon GL. [
.
-S '
I
iii i nm , nrtuwciio'ii ' i
THE UNION PACIFIC ,
History of the Swindle from Its Incep
tion DOWfl ,
Cheated the Country Out of 44
Millions in the Gonotructioni
Issued 47 Millions of Illegal In
debtedness and Pookotod
the Money ,
Defied the Thurman Act , Paying
the Government Nothing
and Dividing 19 Mil
lions Contrary to
Law ,
finally ) Brought to Terms by
Fear , Fired Dillon Out and
Elected Adams ,
A. HnpprcBscil Scnnto llciuirt Tlio
Iloitbo 1)111 In tlio Boiinte.
"rom llio New York Ti
( Conclusion , )
Ai long ago as the 2d of February ,
883 , the cnmmusionor of railroads ad-
rosacd Secretary Teller , calling his at-
ontlon to the largo unauttlod indebted-
icua of the Union Pacific on account ( if
ho Thurman act , which Duo. 31 , 1881 ,
lad reached 8901,8. ' 7 , and Dec , 31,1882
* 1,727,742. Ho admitted that the corn-
any claimed that it was leas , because
ho company counted as operating px-
oiiBca money spent for now construction
nd now equipment , though the Thur-
nan act provides that operating expenses
tioll consist solely of "tho necessary ex-
onsos actually paid within the year in
porating the eamo [ road ] and keeping
io same in a state ot repair. " But oven
oducting the claim of the
oad , so manifestly contrary to law , ho
ound that it was still delinquent in the
urn of $1,030,824.
Commissioner Armstrong recommend-
d that the Attorney-General bo directed
o bring suit for recovering the inonoy
uo , and also have his attention called
a the law , which urovides that if the
oad should for six months after they
wore duo neglect to cxccutaany of thu
> revisions ot the provisions of the Thur-
nan act , "such failures shall operate na
a forfeiture of all the rights , privileges ,
; rants , and franchises derived from the
United States , and it shall bo the duty
if the Attorney General of the United
States to cause ouch forfeiture to bo ju-
llcially enforced. " Hero was a ( Incisive
flicial stop , calling to the attention of
Secretary Toiler the neglect of the At-
ornoy-Genoral to obey the law and pro
ceed against the company for a forfeiture
if its franchiso.
The report was forwarded to Mr.
} rowstcr tlio same day. April 21 a copy
was sent to President Sidney D lion by
Secretary Teller and a demand for pay-
nont made. After quoting the section
of the Thurman act which proscribes Ono
and imprisonment for the directors if
; hey paid any dividends without making
ihoso aettlomonts , Secretary Teller "sug
gested" that the undisputed $1,030,82 !
) o handed over at once , oven if the rest
yore withhold on any excuse. May 1
Ur. Dillon found tinio to answer this de
mand. Ho paid no attention to the law
relative to the obligatory payment of 25
> or cent , of the not earnings , but calmly
wont into a little calculation to show
, hat by his figures the government owed
ho road for postal service some S-I.G50-
127 and has boon paid but $1,011,138 ,
caving a balance claimed to bo duo of
§ 2,738,83 ! ) . Concluding that the gov-
irnmout , then , was the heaviest debtor ,
10 wound up with gentle simplicity : "It
seems hnrdly reasonable to require the
company to pay the balance thus claimed
by you until the questions in controversy
can ba judicially uotilod. "
Inasmuch as the system of " balances"
was not alluded to in the law , nnd there
could bo no "controversy" about the
company's obligation to pay what was
demanded , this reply was almost menu
mental.
May 11 the papers were sent to the at
torney general by Secretary Teller , recit
ing the facts and recommending that the
proper judicial proceeding bo entered
upon. At about the eamo time Mr. Dil
lon arrived hero and had uoveral inter-
viuwa with the attorney-general. Both
scorned satisfuid witn them , and Mr. Dil-
on wont back to Now York. Mr. Brow-
st r put into the court on account in
'sot-uir" ' of the amount duo the United
States against the "claim" of the road.
Uo did nothing looking to the indictment
of the directors of thu road nor the for-
'etturo of its franchise , which under the
circumstances presented to him by Score-
: ary Teller the law expressly says ho
' shall" do The "sot-oil"
- did not trou
ble Mr. Dillon. Ho know that it wouU
bo several years before the case could bo
settled.
Nearly n year after , when Mr. Brow
tor was asknd by the senate what action
ho had taken to enforce the Thurman act
ho briefly referred to those facto , and
added as n reason for bis failure to comply -
ply ; wlthgthoJllow , "Tho CMC hns not
seemed to mo to require in ita present
stages strict enforcement of the act o'
May 7,1878 , | Thurman act ! nnd I have
taken no stops to enforce the forfeiture
proscribed for failure to comply with the
act. " His only oxeuso was that ho had
not thought the law concuruing himsell
required to bo executed ,
V.
The pretext given by the company for
not complying with the Thurmsn act has
boon based on a claim for extra compen
sation for carrying the mails and for
transportation over the amount allowed
by the government. The suit has boon
going on without appreciable results
since January 1 , 188. The company
thinks it should have over $3,000,000
thus paid to it , and on this refusud to pay
the demands of tha Thurman act , ex.
pliclt as they were. This excuse sufficed
until men really in earnest took hold.ani
then the quicknons with which this do-
fcnoo was abandoned showed how unten
able it was. Nothing otherwise would
have prevented the company from al *
way * having a claim ngsixst the government -
ment and an obliging attorney-general
from making the sinking fund require
ments only an offset to it.
VI ,
Early in the aoealon Edmunds iutro.
ducod the bill granting the Union and
Central Pacific sixty years' extension In
which to pay their debt to the govern-
VniMifc in 120 Bomi-aunual installments ,
which the commissioner of railroads had
prepared. Tnii opened up the entire
eubjuct. It was referred to the judiciaiy
committee , consisting oi Mewre. Ed
munds. McMilltn , Logan , Ingalls , Hoar ,
Bayard , Laniar , Garland and PuRri. This
was Jan. 21. Very soon the commiltco
went to work , first obtaining from the
interior department and the attorney
general's ofllco , long statements of the
stops taken by them to have enforced
the Thurman act. About the last of
February the commilfo under the lead of
Messrs Edmunds and Garland came to
ono or two conclusions. The first won
hat the Central Pacific had fairly tried
to live up to the law , but that in every
respect the Union Pacific managers had
fct it nt nattfjht and indicated a com
plete and must nssurcd indifference to
the law. Mr. Edmund was full of the
subject , and the committee directed him
to write a report. Ho did so but it has
never reached the senate nor the public.
That paper was submitted by him to the
committee. Some of ita members do-
murrrod , but his logic was so unanswer
able that finally all of them gave their
assent. But so secret had boon their deliberations
liberations that none outside of the com'
mittco understood fully what was in the
wind.
wind.Mr. . Edmundo' report was not a long
ono , but it reached conclusions thit
possessed a personal interest for some
well-known financiers. Beginning with
a review of the government aid to the
Union Pacific road , it went on to discuss
the need , constitutionality nnd provis
ions of the Thurman net. These plain
provisions are recited , admitting of no
equivocation or double meaning. That
nut ono cent had boon paid into the
treasury under its 25 per cent provision
ainco July 1 , 1878 , was brousht out ,
wliilo during the same time over § 19,000-
000 has boon divided in dividends. And
thia with section 0 of the Thurman act ,
providing that "no dividend shall bo
/otcd , mido or paid for or to nny stock-
ioldcr when the company shall bo in
default in respect to the payment of the
sums required as aforesaid to bo paid into
eaid sinking fund. " This wholesale de-
lance of law the report characterized na
without parallel. Taking up the com
pany's plea , na made by President Dillon ,
, hat the road ought not to bo made to
my until the determination of ita suit for
transportation , Mr. Edmunds indicated
lia opinion of that in exceedingly strong
terms. Ho showed that the law was
nandntory , and no matter what disputed
claim against the government the com-
) any might have , it was not thereby re-
eased from it * plain obligation. Or ,
supposing it had withhold the money
lending u settlement , it must retain it as
1 trust fund until decided by the court *
.Imt it had already been paid in another
'orm. Instead ot that , the directors ,
.hough expressly prohibited from doing
oo , had divided these funds in dividends
through a term of years , until , if they
nhoula bo defeated in their claims for
transportation , these sinking funds could
not bo replaced and the entire scheme of
if the Thur man net fall to the ground.
In fine , the directors have taken into
their own heads to offer the sinking fund
a claim whore the law demanded cash ,
nnd the law officers of the government
iad allowed it to 450 on.
The report closed with a resolution
: alling the president's attention to those
facts and asking to order the attorney
general to proceed to have executed the
lennltiesproscribed against the Union
Pacific directors for illegally declaring
these dividends viz : "Any officer who
shall vote , declare , make or pay , and
any stockholder who shall receive nny
such dividend , shall ba liable to the
United States for the amount thereof ,
which when recovered , shall bo paid into
the sinking fund. And every such offi
cer , person or stockholder who shall
knowingly vote , declare , or pay such
dividend shall be doomed guilty of a mis
demeanor , and on conviction thereof
shall bo punished by a fine not exceeding -
ing $10,000 and imprisonment not ex
ceeding ono year. That was the resolu
tion of the senate judiciary committee ,
nnd had it over reached the senate that
body would have adopted it. Could
those directors have refunded to the sink
ing fund the nineteen millions thus di
vided , to say nothing of the part of the
penalty in Italics ] These directors last
year were Sidney Dillon , Divid Dews ,
Jay Gould , Russell Sago and A. II.
Green of Now York ; Fred L. Ames , Eli-
sha Atkins , Ezra H. Baker , F. G. Dux-
tor , and Charles Fransis Adams , of Bos
ton ; J. A. Kumrill , of Sprngflold , Mais ;
Hugh lltddlo , of Chicago , S. II. II
Olark , of Omaha ; John Sharp , of Salt
Lake City , and Greiivillo M. Dodge of
Council Bluffr , These names ought to
bo good for the $19,000,000.
VII.
Mr. Enmunds had this boombsholl
ready nnd approved by the committee
thi ) first week in May. Ho felt satisfied
with his work , nnd looked forward with
comfort to the. fact that justice was about
to bn invoked for the Jay Gould party ,
which had so long defied the Thurnmii
act. In the secret councils of the com
mittee the question was discusiod of
sending to thu House a statement of the
attorney general's delinquency in not
proceeding against the Union Paciffu di
rectors. Ho had sot up the 25 pur cent ,
duo under the Thurman act as n "sot
off" to the nlaim for transportation mndo
by the road , but this did not seem ade
quate. The committee considered wheth
er ho had not neglected his official duties
in not preventing dividends from being
illegally paid before the
sinking-fund re
quirements were mot. Nothing came of
it , but Attorney General Browser prob
ably little realized how near ho was to
being made the subject of an Inquiry ,
lioavititj that , Mr. Edmunds intruded '
his report nnd resolution to Senator
Hoar , who did last session many of the
duties on the floor of the chairman of tlio
jltdiciary committee. The Massachusetts
spnator was to bring it into the Senate ,
and the date was fixed nt May Oth.
VIII.
These proceedings , however quietly
conducted , were being watched by the
Union Pacific people. They know of
ovoiy call for information from the de
partments nnd nil that took place in the
attorney-general's jfllco. More than
that , they had a general idea of what
Mr. Edmunds was doing within the
closed walls of the committee-room. Men
arc not kept in Washington for the pur
pose of finding out what is going on for
nothing. On the very morning that Mr.
Floar was to make his report Charles
Francis Adams , Jr. , arrived in Washing
ton , and speedily put in an appearance
( A the senate. Ho mod.to bo a govern-
in jnt-director , but in 1882 had succeeded
to the same place in the corporation
soon after ho had made his memorable
visit over the Union Pacific , and recom
mended its stock to the people of Now
England as a conservative and safe in
vestment , on which assurance many folks
of moderate moans in that section had so
invested their savings. Mr. Adams lost
no tlmo. Ho aw Mr , Edmunds , Mr.
Hoar , Mr. Innalls , nnd others. Out of
respect to his urgent appeals the
submission of the report was
deferred until tlio following day ,
What Mr. Adams did in that twenty-four
hours no ono knows so well ns himself.
It probably was the hardest d y's work
that he cvu did for thu road. No con-
cealmont was made to him that the com
mitlco had resolved to net and that the
result would bo extremely unpleasant to
the directors in several ways. Mr. Adams
protested. Ho said that ho had always
been told that everything was all right ,
nnd for himself ho was perfectly guiltless
of any intent to violate the law by voting
for dividends. As n now director he had
very little to do with the management.
His personal nppcnl Was a very strong
one. Ho represented how unenviable a
position ho would occupy , having given
his endorsement to the manigors nnd the
stock , if the road should bo brought to
terms. Ho declared that each action ns
Mr. Eimunda contemplated would de
stroy the entire value of the ttock , create
a panic , completely discredit Jay Gould ,
and bring to ruin many excellent nnd
worthy men who innocently hod pur
chased the company's securities.
This latter suggestion had some
weight , and the storm-clouds of
the approaching crash in Wall street
gave force to his apprehension of the
financial effect. Mr. Adams was hardly
nblo to realize the edge upon which ho
and the others stood , but the committee's
report made it clear to him that over
since the passage of the Thurman net
the directors had boon defying the law ,
nnd it only needed men who , like Mr.
Edmunds , had no fear of Jay Gould to
topple over the whole fabric with a sin
gle push. Mr. Adams insisted upon n
stay of proceedings until the company
could bo heard. Ho thought something
could bo done , nnd that n compromiao
could to arranged. As a result of his
urgent entreaties further action was sus
pended. and May 20 sot down as the
data on which the company could make
its statement.
' The interval was indu < tr'oualy profited
by the Gould party. They saw that bar
ren "sot-ofTd would not do with the
men now after thorn. They resolved by
almost any moans to delay , if they could
not defeat , thia movement to protect the
government. In the meantime the Wall
street crash gave them a handle upon
which to hang and appeal for time. May
20 Mr. Dillon's argument was submitted
to the committee. Among the objec
tion rnado to nny action wns that Attor
ney General Browstor had agreed that
the Thurman act should bo treated as n
nullity , nt least until the endless suits in
the court of claims were diapoaed of.
The committee was in no mood to bo put
off by Mr. Thurman's arrangements.
Then the plea that no wrong had boon
intended by the innocent railroad man
agers , and the potent ono that the enforce
ment of the law would provoke a panic
and probably throw the Union Pacific in
to the hands of the government , were
presented.
The committee hesitated nnd finally
gave the railroad people to understand
that they would not precipitate. If
guarontces should bo given that no mora
dividends would be paid , Jay Gould loft
out as [ the controlling manager , nnd the
road run first in the interest of the gov
ernment , and secondly for the much-
talked-of innocent stock holder , the pen
alties would bo left in abeyance for a
time.
IX.
This seemed to bo n heavy demand to
make of n corporation that haa never yet
[ laid serious attention to the regulations
nado by congress. But the managers
were frightened. They know from Mr.
Adams'statdmontthatthlngs worosqually ,
and they preferred to delay rather than
: omo to an open fight. Besides , the road
s not worth no much as it was , its debt is
overwhelming , and so the Gould party
were glad to stop into the background.
They agreed with Mr. Adams to make
dim president instead of Sidney Dillon ,
transfer the offices to Boston and ncquiesco
iiP nny further terms ho might make to
pacify the senators The latter wore also
iitl a stow because pressure was coming on
them from out of Wall street , whoso in
terest would nlflo bo hurt as well ns the
magnates of tlio corporation. The com
mittee were willing to yield a good deal
il they could bo sure that the company's
money would not bo illegally divided.
So Senator Hoar wont to Boston from
the Chicago convention , nnd there agreed
with the Boston directors upon four
propositions. (1) ( ) No moro dividends
to bo paid until nfter congress again
moots ; (2) ( ) all moneys duo or to become
duo for government transportation to bo
retained in the treasury , both for subsi
dized nnd unsubaidized parts of the road ;
(3) ( ) the company to pay forthwith into
tlio treasury 8718,814 , being the amount
claimed under tha Thurman act for the
year 1883 ; (4) ) the check for $09.359 , so
long lying unaccepted to ba taken on
account.
The surrender involved in these prop
ositions was wondeiful.
To this Mr. Adams expressed his will
ingness to acccdo , and the next day nt
New York , in compliance with the un
derstanding given the committee , the
directors phased the dividend , accepted
President Dillon's resignation , and
clouted Mr. Adams in his place. A few
days afterward the $718,000 was depos
ited with the sub-treasurer nt Boston.
X.
Meanwhile , in the Iionso the Pacific
railroad committee had taken this thing
up in earnest. All through the spring
they struggled with it , the railroad attor
neys , both on and off the committee , try
ing to delay nction. Here the railroad
men stuck to the Hi'xty-yoars extension ,
and the majority insisted on an increase
in the per cent taken from the roids by
the Thurman act. "But , " said Ppst , of
Pennsylvania , and Castidav , of Nevada ,
'what ' is the use of that ! You cannot col
lect the 25 per cent under the present
law , and it is nonsense to talk about get
ting the 35 proposed by you. " Phil
Thompson , who was managing the 35 per
cent bill , replied that some time an at
torney-general would bo found who would
execute the clear duties of his office.
Finally , after a long fight , ho obtained n
hearing In the houae. Speeches were
made for two or three days. The lobby
was active. All sorts of ideas were ad
vanced , Abram 8. Hewitt , who is no
wrecker , " put the case in n nutshell.
Ho said : "There is a misapprehension in
this house ns to the present condition of
these great companies. They hava boon
spoken of here as if they were prosperous
nnd making money. I wish it were
so _ for the sake of the com
panies , whoso stock has long since
pasted into the hands ot innocent bid *
dors , and for the eako of the people of
this country ; but thcsa companies nro
to-day in dire distress , ono of them is no .
toriously in very great straits. Its divi
dends will bo passed. I doubt whether
in our day dividends' will bo resumed. "
Then ho laid down the bare proposition
that unices the government is careful it
will find the Union Pacific railroad on its
hands. That night the railroad man '
were admonished to bo in their seats Ii
the morning to vote for the P st resolu
tiou , The uuxt .1. . . . 11 1. . * . ! offurcd n
day Thomppou an (1
amendmunt raiein to 55 the per cent to
bo required from the Union raoiflo nnd "
to 45 that from the Contra ! Pacific. To
ono'a astonishment it was adopted
without n dlviiiou and without a vote r
registered agninut it , and thu bill passed B
the eaino way. WJiythU chsi'go of frwtf
The railroad mon had boon informed ol
the tonato judiciary committoo'a agrco
mont. They know that Thompson's bill
could got no further. They wasted no
strength because the bill was doomed to
bo pigoon-holod in the upper branch.
Saturday , Juno 21 it reached the sen-
ato. Mr. Van Wyok moved to refer it
to the railrord committee on the ground
that the judiciary committco had already
entered Into an agreement with the
Union Pacific which precluded it from
pushing this measure. Senator Edmunds
tried to silence Van Wyck an being out
of order , but on motion of Senator Pen-
dlolon ho was allowed to proceed. Afttr
referring to thn notorious inlluouco hold
by the Union Pacific upon congress , departments -
partmonts and even the courts , ho road
from Mr. Edmunds' letter to Sccrotaty
Teller where ho says "tho commiltco
will postpone until the first Monday in
December , 1881 , the further considera
tion of the matters arising under tno act
of May 7i878. : "
This agreement , Van Wyck urged ,
would smother the Thompson bill ro-
gnrdleES of ita merits , if it was allowed to
go to the Judiciary Committoo. II o
went on in n startling arraignment of the
committco. Turning to Senator Hoar ,
ho said : "Thoy thought to eliminate an
unpleasant feature in the company and
place at ita head n very worthy citlxan of
Masaaclnuotti , Charles Francis Adams.
But I would aay to my friend from Mass
achusetts that while that may satiofy the
Judiciary Committee that sort of eminent
roipoctability will not satisfy the people ,
Charles Francis Adama is President of
the company now , but the sumo ging of
gamblers arc behind him. They have
boon running that road for the last fif
teen years only for the money they have
gambled in stock. Charles Francis
Adams in examining the condition of this
railroad told the people of Massachusetts
ho was satisfied that it was a safe invest
ment. Ho invited the lambs of Massa
chusetts to como up and bo shorn , and
because it came from so eminently ro-
spoctabloa ocoutco M ono bearing the
name of Adamn they rushed into the
pool. What Charles Francis Adams did
by his respectability among the people of
Massachusetts is sought to bo done by
the same respectability upon the Con
gress of the United States. "
Senator Garland made an inofl'octual
attempt to show that the committee had
not committed itself , and as the situation
grew embarrassing Senator Hoar made
an explanation. Ho defended the action
of the committee on the ground that a
total change in the management of the
road was in contemplation , that Mr.
Adams was to bo made president , the
ofilces removed to Boston , and the atock
kept out cf Wall street. With frank
ness ho stated the real argument put
forth by the Jny Gould people , who were
then trembling on the verge of bank
ruptcy. Mr.Hoar said : "They say it will
bo a very great public injury to us in the
present state of the stock market , when
there is likely to be a great panic , to
como forward and recommend the attor
ney-general of the United States to take
measures for forfeiting this franchise. It
would utterly destroy the government
security for the debt. It would utterly
destrpy the property of many innocent
etock-holdors , and it would have eftocta
calamitous and far spreading , much moro
than these two direct results of your
action , " and further Mr. Hoar said for
himself , "and whether it [ the agree
ment ] was a good thing for the public
any senator who recollects the history
of the last eight weeks [ the panic ] wilt
judge for himself. "
On the assurance of Hoar and Garland
that they would give their attention to
the bill , Van Wyck withdrew his oppo
sition to ita going to the judiciary com
mittoo. In the remaining fifteen days
of the session it was never alluded to
there. Their compact with the railroad
was scrupulously kept.
XI.
Mr. Edmunds has given the Union
Pacific people a respite that is all. The
Juno panic is over and cannot bu in
voked again. Another session of con
gress will give him time to act , now that
all the facts are in his possession and the
company haa put itself In his power. The
Thompson bill is in his hands , and ho
can put it , or almost any ether , through
the peuato. Just what his plan is no ono
knows exactly. One thing is sure , no
moro dividends will bo paid on Onion
Pacific stock until the $52,600,000 now
owing to the government is provided
for.
XII.
These , then , are the facts. The Union
Pacilic now owes the government $38-
529,512 of subsidy bonds , on which the
interest unpaid amounts to $19,054 , 489 ,
and is increasing at the rate of a million
a yoar. This becomes duo in a dozen
years. It has 827,299,000 of hrst-mort-
gage bonds and enough others to bring
tha bonded debt up to $117,487,492 ,
$ ( > ! 000,000 of stock , a total liuu of near
ly $231,000,000 , u sum nufiiciont to build
the whole road three times nnd to epare.
Of all this all the stock and a good part
of the mortgages have been illegally is-
sued. Yet year by year their interest has
been paid , and not ono nmn in the goy-
ormcnthas done aught to stop it , save in
the dcBpierd Thurman act , now galvanized
by Mr. Edmunds.
The road is almost bankrupt. Paral
leled by lines to Ogden , with three com
peting transcontinental lines , hardly able
to earn its bonded chargcH , weighted
with illegal debts , it is staggering to in
solvency. The earnings are falling
away , trains being taken off , countay in
vaded by rival lines , rates of faro and
freight falling. Competing with road.
having ono third the debt , the Union
Pacific has seen ita best days , Robbed
of it blood , Mr. Gould now acorns ready
at last to throw aside the wreck , provid
ed ho can escape the penalties oilixod by
law to this wreckage. The stocks and
bonds have boon largolj' ' disposed of to
ether holders ; they roust sutler from the
shrinkage which hrj reduced tho'utock tea
a third of its former valuo. And through
all this riot the government , with law on
its aide , has been put off and scorned by
pretexts to Himsy that they must have
boon understood.
VIII.
This is the history , briefly told , of the
last year's sequel to the previous man
agement of the government's great in
terest in Union Pacific. Space has BUI-
ised only to glunoo at what has actually
joon dono. The strange actions of cor-
ain men in public life in connection
.herewith will make oven moro suggest-
vo reading when the story is written.
"I do not likrt thee , Dr. Fell ,
The reason why , ! cannot tell1
It has often been wondered at , the
bad odor this oft-quotod doctor was in.
'Twas probably bcctuio ho , being ono of
the old-school doctors , made up pills as
largo na bullets , which nothing but an
ostrich could bolt without nausea.
Hence the dialiko. Dr. R , V. Piorce's
"Pleasant Purgative Pellets , " ro sugarcoated -
coated aud no larger than bird-ihnt. and
are quick to do their work. For all de
rangements of the livur , bowels and
utouuch they arc specific.
EDHOLM & ERICKSON ,
MIL JEWELERS
Jewelry of a designs made to order. Largo stock of
Diamonds and Fine Gold Jewelry.
AGENTS FOll GOIIUAM MANUFAOT'NG GO'S STERLING SILVEUWAIIE.
LAKGK STCOK OF
Howard Waltham , Elgin , Lancaster and Columbus Watches
SOLE AGENTS FOR THE CELEBRATED
A. SCHNEIDER WATCH , DRESDEN ,
Cor. 15th nntl Dodtio , opposite Postoffice.
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HON. EDWARD RUSSELL , Postmaster , Davenport , says : " Physician of
Hot. Ability ana Marked Success. " CONGRESSMAN MURPHY , Davenport.
! ! ? : "An m > Pora"1o Man. Kino Success. Wonderful Curps. " Hours fi to 5.
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BOSTON , March 1st , 1841.
E N PfANO CO a > TLBMX Your Irntrimetits. arana.Sqtnroaml ,
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1CDTT11 SOLE AGENT ,
JLT . .r1 In1519 Dodge Street , Omaha , Neb
RICHARDS & CLARKE , W. A. CLARKE ,
Proprietors. Suporinnudent
U. P. RAILWAY , 17TE & 18TH STREE'lB
MANUFACTURERS OP AND DEALERS IN
Hi
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III ! and Orain Elevator Machinery
MILL FURNISHINGS OF ALL KINDS , INCLUDING THE
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STEAM PUMPS STEAM' WATER AND GAS
BEASS GOODS AND PIPE FITTIN&S
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bno erectioni of Horning Milla and Grain Elevators , or i'or changing
FlourniK Mills , from Stein to the Roller Syatom.
{ " Ljpecinl attention jjivcmto furnishing Powder PlnutB for any pur
pose , nnd estunnirs made for some General uinchint-ry repuiw attended
promptly. Andws
EIUHAKD & CLARKE , Oa-aha , Neb ,