The farmers' vindicator. (Jackson, Miss.) 1873-1???, 1873-10-31

~
! Western Pacific Bonds............ $3.50, SO
g Interest. 302, 10
Observation-Disclosures. 1885,, SO
Sioux City and Pacific Bonds..... $1G2S,32
Interest. 432 "a
Total................................ 5000, 90
. Central Branch Union Pacific
Bonds............,..,......, $4,000,
Interest. ,.....".......... 55250,
Total 81, 1852 50I
With all this lavish expenditure o.
land and money these various railroads
do not prosper and are
VIRTUALLY BANKRUPT.
Such has been the extravaganza o.
administration and corruption in man,
agement that few of the director got
immensely wealthy, while the corpora.
ton itself and the stockholders are
driven rapidly down the road to ruin.
1t is the same old story over again. In
1852 the Missouri Pacific Railroad re.
ceived from the State land grant Of
some 100000 acres, and its first
mortgage bonds were Endorsed by the
State. Yet in less than ten years
after it was bankrupt, and the mort
gage upon it had to be foreclosed. In
1858 the La Crosse and Milwaukee
Railroad, in Wisconsin, obtained like
grant, Of sufficient value to build the
entire road and leave balance over,
but it also went by the board, was
unable to pay its debts, its mortgages
were also foreclosed, and the whole
property sold by the decree of the
court. The same thing we see re-
peated now with these Pacific railroads,
who, in spite of the munifcent gifts of
the Federal Government, are to-day
unable to pay their debts, pay no divi-
dends to their stockholders, and are in
truth the prime cause of the fearful
financial storm which at present devas-
tates the country. A few authentic
figures will show this.
UNION PACIFIC RAILROAD.
The total receipts of this company
for the year 1871, from all sources,
including sales Of land were 81 ,521,-
$50. The operating expenses were
SO, 800, 566, leaving net gains Of 49,
921, 115. But it must be borne in
mind that from this the cost Of man
of lobbying, must be de-
Quoted, which would leave about two
millions to apply to the payment of
interest on its funded debt, for creating
a sinking fund for the discharge of the
principal at maturity, and to pay off
its floating debt. Now, in 1771, its
funded debt, exclusive Of that owing
to the United States, was $48, $3.50, 900,
On which the interest charge was 49,
905, 500, which with the interest due
10 the United States, makes "a, 489, 100,
or twice as much as its earnings. In
1872 the receipts of the company were
81, 1862, ITO, the operating expenses
81, 821 ,S41, leaving net 81, $40, 1929,
" deducting the cost of managing,
lbout So, 900, while the interest
,harge on its funded debt in 1872 was
q, 553, $50. OF course the stockhold-
rs received no dividends on their $780,
1000 of stock, and, though the in
crest on the first mortgage bonds has
,een paid, that due the United States
5 in arrears, and the floating debt has t
argely increased. Should the Credit
fobilier suits, now pending against
he company in the United States Cir :
uit Court in Connecticut, be rigidly
ressed, this railroad will. be speedily
breed into bankruptcy.
THE CENTRAL PACIFIC.
No authentic financial statement of |,
his close corporation could be obtained !
Or last year, the latest accessible being :
hat of 1871. In that year its total :
eceipts from every available source,
lnds included, amounted to 9,046,- 5
AZ, coin being reduced to currency, d
5 the circulating medium in California c
mainly coin. The operating ex- p
enses were S4,325, 42S, yielding an p
rparent gain of S4,720,914, while
he entire interest charge on its funded r,
ebt of S53, 044, 452, and that due in 4
Tnited States bonds was 81, 1854, 005, lie
r $4,000 more than its seeming pl
lrplus. =,
THE KANSAS PACIFIC. -
This road runs from Kansas City,
[issouri, to Denver, Colorado, a dis
nee of 638 miles, and from Lawrence b'
, Leavenworth, Kansas, "a miles. OF
s receipts in 1871 were s3,312,517, al
I'd operating expenses S2,302, $50, ca
aving as gain the sum of 81 ,O09, 1927, m
lille the interest on its bonded debt ne