The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-06-02
Total OF company's indebtedness to the
United States 70 july 1, 16vb ......... k67 Sli


United states 10 July 1. 1896. .t87 s07 81
Now, how 10 this sum to be provided2 Taking
for granted that Congress proposes to see TO II
that company now so prosperous to be able
to declare eight per cent. dividends upon It's
capital stock shall not escape paying it's lust
obligations to the Government - obligations
amply secured by second lien UPON all OF the
company's property--what terms, what pay
ments from tho com pany may be justly insisted
upon ny the Government2
IL IL well known that bv the recent decision
ofthe United States Supreme Court one half "
the earnings OF the com pauy for service on Gov
ernment account may he retained oy the lreas,
that precisely when the payment Of the Ave per
cent Of the not earnings should have begun, or,
In other words, exactly when the road was, IN
contemplation Of law, fully com ieted, Ia q de-
b table question. SO also may the doubt as to
the meaning OF the words net earnings" bs
admitted, and II Ia not material whether they
shall be understood as they are accepted by tine
railroad world aed common people generally.
or az expounded by that ngurchead Of jay
Gould and eminent philologist, Sidney Dillon.
here stands the act Of 1872. Under the pro-
visions OF that act, unchanged on this point by
any acts amendatory thereto. Congress NAV re-
quire the COMPANY TO set apart for n sinking
fund such psrcentase cat least Ave per cent; ,
rived from Governments business, TO retire a.
their maturity all Of the bonds loaned to the
COMPANY. and reimburse the Government for
the interest advanced. This per centum of
earnings may be uniform or gradually increas-
ing, say fifteen per cent. annually upon the " net
esrnings," using these words In their ordinary
sense, or thirty Yer cent. " Jay Gouds interpre-
tation ~ TO be accepted or a lower rate may be
hxsd for the first Ave years, to ne Increased pro-
portionately through the remaining fourteen
years, when the bonds will become due ami pay
able.
But however arrived al, II a uniform rate Ia
liked by Congress, the per centum annually set
40 irt, when added TO the earnings accruing
from Government business, must yield Al least
Sl,oJO,VO each year, this being the amount
winch. when Annually compounded at SIX per
cent, with make on the first day OF July 1895. the
sum OF 81, the aggregate of the COM
pany's Indebtedness to tho Government IN that
day. THIS annual assessment or tax OF $780,
OO Detng absolutely necessary to provide for the
liquidation of the cOmpany's debt to the dow
eminent. II may be assumed that Congress I'M
derstands ITS business sufficiently well to take
care that such an amount snail be forthcoming.
II, then, the foregoing sinking fund tax OF
tl,sNC,OOO Is deducted from the balance which
remains In the cOmpany's treasury after paving
the interest on the bonded dent, as above
shown, there would still remain in the com
pany's hands for division among the stock
holders the sum of $I,3o0,000. aud every dollar
beyond this sum which tue com pany pays to its
stock holders IL n misdirection OF ITS funds and
simply contribution to j v Gould ami hts
gambling associates for stock jobhing purposes.
The road To day Is earning enough TO pay hon
e-tly about ~ pr cent. upon Its capital stock
stock ~ worth, therefore, Just what the stooA
OF any road earning that dividend, ana under
the same favOring conditions, with an In
creasinR business, and with land sales which are
slowly retiring a portion Of Its bonded indebt-
edness. may rate at In the market; but 10 claim
IL, or would be " ere ited, \ gross fraud upon
the public, which r calls, II II does not parallel,
the Emma mine swindie. INDEX.
WASHINGTON, ID. O., uay 30.