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Show LOIETT REPLIES TO MUM LETTED Senator Thomas Reads Answer An-swer Criticising Salt Laker's Attitude on Freight Rates. Special to The Tribune. WASHINGTON, April 22. Senator Thomas today read in the senate a letter sent him by President Lovctt of the Union Pacific railroad, answering critlclama contained con-tained In a letter from W. 5. McCarthy, sccrctaiy of the Salt Jvikc City traffic bureau and recently plnced in the record by Senator Thomas, and In which McCarthy Mc-Carthy urged congress to prevent the railroad company from distributing as a dividend ?80,000.O0O derived from Its sale of the Southern Pnclflc. which was authorized au-thorized by the Utah legislature in 1901. In the letter read today. Judge Lovett pays tho fundamental error of McCarthy's criticism if his contention that he bonds in question are atlll outHUindlng, the actual fact being that they were all retired re-tired In 1906, when $90,450,000 of those bonds were converted into common stock, and the remaining 5550,000 called for redemption re-demption nnd paid. The cause of the misinformation given by McCarthy, says Judge Lovett, Is probably that the company com-pany has now outstanding part of an entirely en-tirely different Issue of convertible bonds made in 1907, of which somo $73,000,000 were originally issued, and all but $26,-835,000 $26,-835,000 of which have been converted into common stock. Senator Thomas, in presenting the Lovett Lov-ett letter. Bald that lie adhered to hls original contention that tho showing made by Mr. McCarthy warranted action being taken to prevent the railroad company from puylng the proposed $80,000,000 dividend. divi-dend. Senator Smoot. when the matter was previously before the sOnate. said lie had been advised by tlfo department of Justice that the only action that could be taken In the matter would be through a suit In the courts of Utuh, s the railroad rail-road company was organized under the laws of that state. |