The star. (Cincinnati [Ohio]) 1874-1875, 1875-02-18


possible opportunity. Therefore, goo'
old-fashioned Methodists, who do no
wish their daughters to be enamored o
the stage, should take them away from
Wesleyan College and place them unde
different influences.
COMPOUND IbTEREST AND PRES
| IDENT DILLOM
Sidney Dillon, President of the Uniol
Pacific Railway, is "brick". of the frs
water. He has "cheek" beyond all par
allel. His audacity is only equalled by hi
GOODNESS. He writes to Secretary Bris
tow saying that at about the year 19O
his company will owe the United States
over $77,00O,0 900, principle and interest OF
the cash subsidy of $27,236,572. H,
speaks OF it as unjust for the governments
to receive S77, ,OO0, 900 in 1900 when it only
loaned the company $27, ,236, ,5172 in 1868
He tells the Secretary that no part O
the interest is payable until the maturity
of the bonds, and then the amount will
be soiarge that the company Will not be
able to pay. He claims high considera
t1on for generosity and justice in pro
posing to secure the government some
part of the amount. He tells Secretary
Bristow that the government has ''only a
second mortgage for this large amount"
and virtually assuree him that in the
year 1900 the security will be good for
nothing unless the government should
discharge prior claims and run the road
tor payment-"a policy which states
manship would not advseW
MIR. Dillon protests that the company
is anxious to secure and discharge all
their obligations to the Government, and
to establish friendly relations between
the company and the United States.
The past history Of that company is not
calculated to give much weight to any
protestations Of piety from that quarter.
They deliberately bribed Congress to
surrogate the Governments first mort
gage in order to enable the company to
borrow as much more on a first mort
gage; Sand then they deliberately swim
died one-half the gross sum into their
private pockets. No private capital was
paid. in by stockholders; and at time
when they knew the road could be built
without disturbing the security of the
Government, they bribed Congress to
virtually give them the whole subsidy.
But the government is quarreling with
the company as to several matters. and
the regenerate Dillon and his fellows
abhor all unfriend1y relationsl He ac-
cordingly proposes to pay 100000 a year
for twenty years, and after that $3.50, 900
year until the amount at per cent. in
terest compounded every six months
shall cancel the amonnt due at the close
Of the century,
AS he makes no mention of the half of
the value of public transportation which
the government is Withholding against
the protest of the company, nor of the s
per cent. on the net dividends of the
road which the act provides for the ben
eft of the government, the inference is
that the new proposition is to be in lieu
of all claims and all other payments.
Let us then figure little. The annual
interest on $27, ,236, ,572 is 81, 1884, 400. About
$1,000, 900 of interest is now in arrears
Mr.: Di!!ipu proposes to pay less than one.
third the annual interest for twenty
years and less than one-half thereafter.
How long will it take to cancel the
amount at this rate' Were the pay
ments he proposes honestly deducted
from the interest there would still be due
the Government in 1900 over $55, 5,0OO,OOO
But on Mr.. Dillon's plan of a sinking
fund compounded every six months, his
payments would amount to $77,000.00O in
37years ana 2 or months. But 81 years
extend 12years beyond the close of the
century. We understand his PROPOSE
tion to mean that the payment of $3.50, 900
a year shah continue until the govern
date at simple interest. The whole
would be Cancelled by the year 1915-al-
lowing the government no compound in
terest, The amount would be about
$97,OoO,OOO, including the interest now
unpaid.
The beauty of this is that while Mr..
Dillon thinks The Government outrage
GUS for taking SO prodigious sum as
the amount at simple interest, he asks
for the company compound interest.
Now what is the difference between sim
pie and compound INTEREST," 1t is SO
great that in the year 1916 Dillon pays
about $6. .2OO, 900 by having his payments
compounded every six months; while at
simple interest on his annual payments
he would pay but 81, 1850 His total of
payments in the 40 years would amount
to about $2,000,000 less than the princi-
pal, $H, ,216,5 ,522, borrowed of the Govern
ment. Great is compound interest, and
great is Dillon. esr.-. -