Carson daily appeal. [volume] (Carson City, Nev.) 1873-1877, 1876-06-14
CORRESPONDENCE OF THE DAILY APPEAL
WAsHISGrGS, u. c.,


somewhat varied journalistic expert
ence it has been my fortune to have
much to say upon the subject Of the
railroad question in general and the
Central Pacific Company line IN
particular. l believe l have never
hesitated to speak my mind with
freedom upon all matters Of public
interest relating to that road, and
that in SO doing have criticised 1t
with an unhindered pen when l have
thought it has gone wrong, and COM
mended it when / have believed 1t to
have pursued Just and proper
course. And it SO happens that tins
company is interested in measure
now before Congress which / think,
after weighing the matter carefully,
is entitled to not unfriendly IT not,
indeed, a favorable consideration at
the hands of the law makers OF the
National Legislature. l refer to Sen
ate Bill No. GS7, "a Bill to create
sinking fund for the liquidation OF
the Government bonus advanced to
the Central and Western Pacific
Railroad Companies, and for the
settlement of the claim vi the Gov
eminent on account OF said bonds. y
Tie bill as amended in the Commit
tee on Railroads provides for the
surrender to the Government OF slZ
million acres OF lands in Nevada and
Utah now belonging TO the company,
and TO have the amount Of SO ,UoO,-
O00 credited 10 the companY's bond
account i'm consideration OF the same.
An explanation of the company S
attitude of debtor toward the Gov
ernment (which explanation, should,
perhaps have preceded the foreSo-
ingl, may be briefly stated as fol-
lows: The payment of these bonds
will fall fall due in about % years
hence. The amount then payable,
principal and interest, will amount
to not less than SIT 1000, 900. OF
course, if this Till passes, the amount
will be less that sum by SD. 600 600
and a lessened volume of interest.
The Act of 1854 provides that
After said road is completed, until
said bonds and interest are paid at least
FIVE per centum OF the net earnings OF
said road shall also be annually applied
to the payment thereof.
Just what these ne: earnings are,
involves three questions as follows,
namely: As to when the road was
completed; As to what constitutes
the net earnings; and whether the
lateral branches OF the road are to be
reckoued as part of the road itself.
With regard to these questions the
company holds as follows: That the
road was not accepted by the Gov
ernment as completely until 1874;
that the net earnings are to be reck-
oned as that sum of money which
can be divided among the stock
holders after ALL expenses, such as
taxes, repairs, ETC., are paid; and
that the lateral branches of the trunk
line are not to be reckoned as bear
ing any relation to the main trunk
any more than wagon roads or any
other feeders mention all these
things which are hardly relevant to
the matter under consideration for
the reason that it occurs to me to
explain the attitude in which the
company meets the question of what
it does actually owe to the Govern
ment, and how and why it owes it.
In order that this bill may be fur
ther explained, l quote as follows
from the printed copy:
SEc. 4. That the said canlpany shall
pay semi-annually, On the first day of
April and October in each year. into the
Treasury of the United States. such
approximate sum, not exceeding .fou' hul-
Gred Gad tcEe,ty.fce Honsand dollars, IN
lawful money or in any bonds or secur
tiles OF the United States Government at
par. as shall, with Interest thereon AS
Hereinafter provided. be sufficient, when
added to the other sums to the credit of
said sinking fund, to pay Oft and extin-
cuish the balance GfF the cidu" for the
bonds advanced; as afore-
said, with six per centum interest there
on, from their respective dates up to the
last bond issued to said companies.
Interest Qp all sums placed to the credit
OF said sinking-fund shall be credited
and added thereto semi-annually at the
rate Of six per centum per annum.
This, understand me, is the Com
substitute for the company's
Hill There ara other features of