The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-06-14
THE PACIFIC RAILROADS.
TALK WITH oFFIcEEs OF THE GENITAL PAcI-
Frc-THE ATTITUDE OF BOTH COMPANIES TO

TALK WITH OFfiCAES OF THE CENIhAA fASi-
Frc-THE ATTITUDE OF BOTH COMPANIES TO
THE GOVERNMENT
The Associated Press despatch from San Francisco
published in the morning newspapers OF Friday last
giving the that warrants OF arrest had boon issued
against Governor Leland Stanford and T. II. Miller
respectively President and Secretary of the Central Pa
cinc Railroad, created little excitement and gossip
In this city, where the former gentleman is well
known and especially in railroad circles, where the
TACT canvassed reference to It's bearing II any,
upon the great struggle between the Pacific railroads,
their opponents, and the United States government
In order to arrive ut tho Importance and meaning OF
the difficulty HERALD reporter waited on Vice rresi-
dent @. p. Huntington at the onicc OF the Central
Pacific road in this city, who cheeriuy conversed ON
the affair and rendered the following information
"Yes, suppose il TO be truo stated in the de-
spatch you show me- that some sach action as the
issuing OF warrants against the President and Secre-
tary has been taken in California But what looks
grave so far away from the scene Of tho quarrel
dwindes down into very insignificant affair near
home The suits against our company are pushed on
the complaint OF J. X. Robinson, stakeholder TO a
small amount in Central Pacific; but the man behind
him is A. A. Cohen, against whom this company has
suit the recovery $780, 600 Now as TO the
books and papers said to BIO required be produced IN
court have distinct advices; but us the despatch
says they contain statements Of amounts OF money
paid influence State and Congressional Legislation
pronounce that untrue In regard to your second in
quiry as to the present aspect OF the matter between
CONGRESS- AND
l would say it is broad subject and hns been mis-
represented perstently in the newspapers that II Is
scarcely my desire TO be quoted in any way in connec
ton with il. WILL however, give you tact not yot
announced-that the Central Pacific made olor to
the Judiciary Committee of the House OF Representa-
tiycs OF the matters dispute
to three New York bank presidents, insisting that The
questions involved and not political ones
SO far this has not been accepted II tho exact att
tude OF the Central Pacific Railroad toward the govern
mcnt OF interest HERALD readcrs-and II certainly
has not been properly stated betore-Mr Colbrun can
give you figures that may be of public importance"
The gentleman last Indicated, III charge OF the statis-
teal department Of the railway when ound gave 10 the
reporter the following the rsandng Of the Cen.
trail Pacific Company OF its relations TO tho United
States government
s.sincc the Supreme Court decision It is generally
recognized that the government liable TO lose part Of
its advances to tho Pacific roadswcn are Dut sec
ond lienunlcss some provision ~ made TO extinguisn
the debt before maturity by the operation OF SINKING
fund. The companies have always been willing to COM
promise IN some equitable manner. They have never
shown themselves reluctant TO arrange tue dncuities
as IL would DO a loss to them and the government
well the roads so into the hands OF the irst
mortgage bondholders the Indebtedness OF uoh COM
paniesCenlral aud Union Pacitcis about S27 QUO 600
each, and one year ago proposition was made Tor
sinking fund TO cxtnguish this indebtedness-not due
until 1898. Three bills have been offered IN WASH
House Judiciary Committee known us the Lawrence
bl which requires the roads 10 pay 600 600 annu-
ally, SO as TO lqudate interest anu principal by 1898
Another BILL reported by Judge Hurd, Of the minority
allowing the roads twenty years more time, and also
proposition from the Senate Railroad Committee which
provides Tor taking back from each company 5000 600
(and grants and striking Sl5 ZOO OOO from tho
oil tho Indebtedness of each company with pro-
VISION to create sinking fund Of about 5000 600 annu
ally 10 cancel the remainder Of the debt inc COM
pancs Claim they must either turn in the lands against
their Indebtedness or have
sStva nfE
because II they required pay these sums In cash
the maturity OF the bonds u Will result Ia taking
SO. COO 900 annually IN money out OF tho fares and
freight receipts 10 anticipate debt not matured there
are equities also arising from the TACT that The bonds
they contracted IN 1862 to receive IN ava o. construc
tion worth par IN gold, but when they were
earned 1854 - 1863, they were deprecated as low,
in some cases, as fifty per cent Yet the companies
will be required 10 pay them in currency as good MS
gold 1t reasonable that these things should be
taken into consideration In making up the differences
between the government and the roads The roads
are BESIDE carrying ireights and mails ut
lower than either party expected when the con-
tract was entered into The Central Pacific road
essentially California creation, and In Its regard Con-
grcss only exact compliance with contracts, SO any
attempt 10 impose harsh conditions would, perhaps,
be set aside By tho Supreme Court; but apart IRON
this consideration the amount OF money to he paid into
the United States Treasury within twenty-five years is
SIXTY MILLIONS or DOLLARS
for each company, and believe they could build an.
other and better road Tor less money and let the
properties go INTO the hands o. the nrst bond
OIL sides should effect the settlement without any
such extreme result being reached Tho substance OF
tho Union Pacific proposition is something like the fol-
lowing but will not youch for exacttudc In every
item
at is that 5000 900 per annum be paid for the FIRST
ten years, and $3.50, 600 per annum thereafter, INTO
sinking fund This Is 10 he rccciyed by the United
States Treasury and interest at the rate oil SIX per cent
per annum, compounded semi-annually; and the gov.
Is. consideration Of the prompt payment or
these rcnqush its right 10 the i've per cent OF net
earnings to which 1t is entitled. ami also to pay
the company in full for Its transportation charges, Of
which one half is now retained. Tho proposition TO
reconvcy the lands TO the government ut rate OF
81 so per acre Is withdrawn"
Thus succncty the positions of the operators OF the
Pacific railroads stated from their own standpoint