The New York herald., 1876-12-25

Leaving surplus earnings S33, 5l4 loI OF
The directors 20 TO state that tho ant licpatcd
trouble 10 the elevated portion Of the line ~ snowtalls
has melted ava. until less its operation
than the SHOWS which ali upon The Atlantic
lines TO them.
RESOURCES DEVELOPED
Tho ''perect waste which was originally destined
to starve the now teens with farms ana vil-
lagos and herds OF cattle anu hocks OF sheep aud
braces mineral wealth beyond computation and almost
too great Tor human belief From this ''waste We're
shipped from June l 10 September 80, 1876 20, 260
mead OF cattle requiring the use OF l,0l3 Dur
ing the past season. IRON Texas alone, l 600 cattle
were distributed along this line. In this desert
company have discovered abundance OF water and
fuel, and during the past year mined Tor their
for general consumption ~ 6i4 Tons Of coal
average cost OF IL % per ton From the mineral ue
posts along the line OF the road comes small share
Of swelling traffic, and during past years
ne SILVER bson 10 over sus hs
mails OF China, Japan and lnda, as also OF
Australia and England, are conveyed over
THIS road, the British government sending
Australian mails amounting TO about $50 sacks
and $50 sacks west each month. BY this road during
the past four Years S3 worth tea have been
conveyed IRON San Francisco TO the Eastern cities,
ana 81, 500 900 worth OF silk. The directors see
good reason why the commerce OF the Pacific Ocean
should not fall under tho control Of the United States
The doors are wide open, and II We should exercise
poli,co-c sasacity commensurate with tho
advantages oil our position, We should close them
against all other nations.
INDEBTEDNESS OF THE ROAD.
Tho entire Indebtedness OF the ROAD IS $7S 594 5l2.
II Is IN good condition throughout It's entire length.
and during the year ending Jase 80 last 1857 of
rails were renewed and 4S5 233 put down. Five
dividends have been paid 367 400 shares OF stock
since July 1875, amounting to total Of ST. 400 775
The directors have held that the amounts heretofore
claimed as due the government on rombursement
count should be regularly paid before the declaration
OF dividends The late decision OF the United States
supreme Court has removed IN part the supposed legal
support this position OF the drcc and leaves
question relative TO current reimbursement OF tho
government undetermined. which the arts
Tug under the five per cent clause OF the
OF July l. 1862. SUIT has been instituted recover
what government claims shouia have been paid from
pany should he affirmed IN that case, then tho only
reimbursement would consist OF oneha tho
amount 10 he earned by the company account or
transportation Tor the government.
PROSPECTS or PAYMENT.
The directors hold that whatever comes Of tho dis
latte. must provide Tor the pay refunding Of
the nrst mortgage bonds. TIE hen OF these bonds IS
superior 10 that held by the government. II Is not
practicable Iur lie company TO pay these, and pay
lhriy years term Of the subsidy, and II would be
Tor tue government and the company to u roe upon
the estaDlis shmcnt Of a sinking luna, which shall
the total Indebtedness OF the company tho gov
crnmcnt end OF the term 10 S25 00U 000 which
could be without deranging the pany affairs
lal stock Snouid Congress authorize such arrange
men the company will concur and Al the cnd OF thirty
years the government viii have received back all ITS
interest ana upward oil $1,000, 900 of the principal
ol the debt The directors suggest TO provide for tho
S52 900 coo OF first mortgage bonds an the balance
the government, the authorization by Congress Of
a new mortgage under which S25, 900. 900 OF the
lrst mort2egc bonds ght be placed with the govern
mcnt collateral security. 10 be redeemed last
tho company sell them In The market. The dircc
tors believe this would Dc SAFE and popular security,
and that the best interests oil both government and
company would be promoted thereby.