The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-08-06

rowed from San Francisco capital
istS.. ..................... OOoo,OOO
Total Indebtedness in bonds borrow
ed money and unpaid interest, sos, 61s 900
The paid-up capital stock of the Central
Pacific railroad is $54, 200, 900. and the
| stock of the Vallejo system $12 1000, 600.
Independent of this alleged paid-up stock,
which must be worthless except as an ele-
ment of power, and the $1,500,000 in Dor
rowed State bonds upon which the State
has agreed to pay the interest until matur-
ity, the interest paying outstanding debts
of the company amount to $107 ,000,0 900 in
round numbers. Thirty-five millions,
counting the accumulated interest, is ow-
| ing the Federal Government but as the
payment of the interest thereon has been
stayed off it may be deducted from the
present statement as not an immediate
cause of embarrassment There will be
still remaining $72 100000 outstanding IL
abilities, the interest upon which is re-
quired to be promptly paid.
The interest on the 5000, 900 borrowed
from San Francisco capitalists ranges from
| sixty thousand to
sEvENTy-FIvE THOUSAND DOLLARS PER
MONTH,
which, accepting the lower rate, would
amount to $720,000 per annum. The
mortgage bonds on the Vallejo system
amounting to $4,000 900. bear interest al
the rate of eight per cent or $500, 900 pei
annum. And allowing that the rate of in.
tcrest on the $62 200. 900 mortgage bond.
remaining does not exceed that of the low
est Government mortgage bonds six pei
cent.-there is an additional sum payable
during each year of $3,120,0 900. The tota
amount of interest requiring prompt pay
ment thus foots up to 1920, 900 per an
mum, as will be more clearly seen in the
following table:
Twelve per cent. interest on money from
San Franclscans, $4,000
Eight per cent on Vallejo system bonds sOlOO
SIX per cent. on all bonds not Government
or state, $4,000
Total, 1920 00l
The bonds borrowed from the Govern
ment-$2S, 900, 000-are drawing an inter
est of six per cent. per annum. or II $3.50.
900. making the actual aggregate annua
interest on the companys liabilities 80 $50,
600.
THE NET EARNINGS OF THE ROAD
for the year ending June 80, 1872. til,
date upon which the last official report wa
made-amounted to $505G, ABB, or $1S3,
567 less than the amount of interest thei
requiring immediate payment. Since thel
the Vallejo road has been in the main idle
and has contributed but little toward TIN
payment of the expenses of repair and tn,
interest running ON its mortgage bonds
which can be safely estimated at abori
81 100000. The increase in the earning
of the Central Pacific railroad during tn
past year will probably be barely suflicien
to cover this deficit and pay the interes
due to others than the Federal Government
leaving nothing to pay for repairs, lobb
services, etc.
The magnitude of these liabilities of tn
Central Pacific Company is somethin
startling. The manner in which they hay
been contracted and what security tn
state and Federal Government have tina
the bonds loaned with the accumulative in
terest, which in the case of the latter vii
not fall much short of $1,000 600. vii
be paid upon maturity, invite investigation
! There is no reasonable solution for the con
traction of such enormous debts. excep
that OF the Credit Mobilicrism of its mana
gers.
THE CONTRACT AND FINANCE COMPANY
was in reality nothing more than the Cred
Mobilier of the Pacific slope OF all tn
debts contracted there is probably non
more unwarranted than that of the Ian
mortgage bonds of the Central Pacific fo
10000, 900, bonds which are unfit for tn
market, because they have been issued O
property yielding no revenue, but whic
are nevertheless draining the resources O
the company in the payment of the interes
which they are drawing. No intelligen
reason for the issuance of these mortgag
bonds can be given, unless it was to pun
chase the interest of the Crockcrs in til
company, and we understand that sue
was the case. Thus 100000 per annur
OF the resources of the company whic
, ought to be devoted to the improvement @
its roads, the perfection of its system, c
; the reduction of Its liabilities, falls into tn
) hands of spectators from whom there
nothing to show in return.
There Is no more than ordinary signif