The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-01-28
Financial Statistics OF the Pacific
Railroad.

Inc senate at washington has evinCed
some disposition to respect public opinion in
regard to the corrupt management of the Pa
cifc railroads by adopting. yesterday, Senator
Edmunds amendment to the Appropriation
bill, which requires that the amount due those
roads by the United States for freight shall be
withheld until the overdue interest shall have
been paid, and until the five per cent on the
earnings of the roads shall have been paid
over to the government in conformity with
the law This is step in the right direction,
and it is to be hoped that it is not mere pre-
tence, but an indication of returning sense
and honesty on the part of Congress- In this
connection the annual report of the company
presents some interesting facts.
As generally understood by the public, the
Pacific Railroad means the whole line from
the border settlements of Missouri to Cali
fornia, which includes, of course the Union
Pacific and Central Pacific roads. 1t is, in
fact, one connected line, received aid from the
government as such, and has common inter-
est It appears, then, that the Union and
Central Pacific, according to the annual re-
port just made, cost $114.258, 535. The cost
of the Central Pacific is not given, but as the
Indebtedness is over $5,00O,00O more than
that of the Union and the stock subscriptions
over $2O,0O0,0O more we suppose the cost
to have been greater. The cost of the whole
line, therefore, as assumed by the companies,
can hardly be less than $240, 100000. How
much of this was bona tide payment in cash,
Cot h.
Credit Mobilier contractors and railroad
grabbers to make enormous sums of money
we shall not know until the whole matter
is thoroughly exposed. We think, however
800, 100000, if carefully expended, would
have made the whole line and equipped it as
well as that has been DONE A hundred and
forty millions, probably, have gone into the
pockets of the Congressional and other specu-
lators.
The Indebtedness of the Union Pacific
amounts to $75, 1914, 512, and of the Central
to $4,000, 1872, making in all s156, 794, 644
The loan of the United States to the Union
was 1927, 236 $40, and to the Central $27 855 $50;
in all $4,000, 1872. This is in second mort
gage bonds, which the United States govern
ment is bound for, and which it has to pay
interest on, with little prospect of ever being
paid, except a small portion of the interest, as
a consideration for the railroad carrying the
mails The government having consented to
accept a second mortgage after having pro-
vided for first mortgage, as an accommoda-
ton to the companies the companies were
enabled to issue first mortgage bonds for the
market, and, on the strength of the credit
given them by the government, to real
ize over s53,000,000 in addition. All
this was Independent Of land bonds issued
and of the proceeds of sale of the vast amount
of lands granted. We have not the figures
before us to show the total amount of land
granted, but it must be about 200, 000, 900
of acres, and perhaps over that. This
land grant alone will cover the bona
.fde cost of the line. There never was
before in the history of the world such q
stupendous job and fraud upon the people, 1t
is easy enough to see why congressman be-
came interested and why they passed an act TO
substitute second for first mortgage bonds to
the government as a guarantee of the loan.
During the last year the earnings of the Union
and Central Pacific were ST., 1876, 1885, Taking
the estimate of aggregate expenses of the
Central for the year, which amount to
S. 1872, we suppose the net earnings to have
been for the whole line fully SS000,000.
Considering that the lands and the loan of the
United States granted to the companies were
more than sufficient to make the entire line,
the SO, 900, 900 net earnings, besides the pro-
ceeds of bonds and stocks, are clear profit.
Yet these companies are imploring the govern
ment not to demand the interest ON the second
mortgage bonds which it pays and has guar
anteed. 1t is high time the whole Of this
monstrous Pacific Railroad job were probed to
the bottom and that the government should in
sist upon full payment of the interest on the
bonds it guaranteed.
The Policy GAME BY IMpEcUNIoUs Con-
eREssMEN The mystic figures "3-2-9' are