New-York tribune., 1876-05-06
A SINKING FUND FOR UNION PACIFIC.

REPLY OF PRESIDENT DILLON 70 HE HOUSE JUDGE
AIRY CoMaITTEE-A DESIRE 10 Transfer \
PART OF THE LAND GRANTS BACK 10 TIE GOV
ERYMEST-LIMTED AMOUNT OF LAND SAILS
THE GOVERNMENT ASKED 10 PROPOSE PLANS
FOR : sINKING FUhD.
lClNERAL PRESS DIsrATcul
WAsr,INGToN, May 5.-TIIe following letter
from tie President the Union Pacific Railroad Com
pauy was received by the House Judiciary Committee
today in response its recent request for the tubnis
sion within days Of proposition for The creation
Of sinking fund which shall not include an OEer 10 re-
convey 10 the Government any portion of the land
grants:
UNION PACIFIC RnIwAY, PnEsIDENT; OFFICE
To tie lion. J. PROCTOR KNoIr cha'roan S NE ts ao1-
nuee NJ he Judtca,H House Of HePreSentdt'ces bG"-
SIR hiter as much consultation with my associate
directors OF this company has been cac IN lhe
brief time allowed by your letter Of nc 2oth OF Apili
find myself unable at this time 10 submit s lelurstd
therein new money proposition for The creation OF sink
ing fund to meet the eventual liabilities O ie COMPANY -
the Government under tc secon1 NOR eaee, l sou m ~
any way from the Government the Company WIZ R'ru
Immediate and careful consideration, with view 10 MS
acceptance found 20 be fair aud m 10 the other cred
itols and to the stockholders OF the Company;
l. The disposition of the Company IN this direction ap-
Supreme Court Of the United states that neitherthe primer
nal nor OF the sccond mortgage cio
Tic Government until the maturity of the bonds th'siy
years the date OF Issue, the Company Offered under
date Of Feb ., 1860, 10 commence making SINKING unu
payments of about Sl,OOUOOO immediately, ana SJO-
uOD annually ten years. 100000 annually for the
nrvt ten wears and OO0. 900 annually thereafter.
This Offer which favOraby considered by the Ehecu-
five and transmitted TO Congress by the Secretary OF the
Treasury during the present session, although II has
becn made appear too liberal on the part OF the Com
many nv the subsequent decision Of the Supreme Court.
nroyes that the Company desires to do all that II LARRY
ougt in order prepare 10 meet Its Indebtedness TO
inc limited states by the time II becomes due.
p The opinion Committee that III wOuld De ln-
expedient to accept account OF the company future
recOnveyance Of any oi the lands granted
by the United states IN aid Of the construction on te
road we trust WILL further examination OF the SUD
iect recons1errd and different conclusion reached
The amount to become due from the Company 10 the
Government OH the maturity OF the bonds about the year
1897 large that annual sinking iund u,
money sufficient cancel 1t at that date would DC beyond
the reasonable means OF the Company, lhere
must therefore, IN any settlement be either an
extension OF time for payment, or some wise
and legitimate method must be found lot re-
ducIng by q substantial credit the Indebtedness
| or for In some way augmenting the SINKING iunu.
fair and reasonable method OF accomplishing tns ler
object by the retranscr to the Government OF tnc
whole part, OF the lands granted to the company,
| which, although valuable and sure TO be ultimately
largely profitable do not produce cash returns Win te
rapidty which first expected II by more RAPID set
ement the country along the line, ana by speeuer
lands large cash returns were secured the COM
fund payments the Government; but In the absence OF
such raDld sales, such payments cannot safely De a
tempted The land grant to this Company was aDont ~
100000 the total sales 10 Dec 81 1872 were
100000 leaving nearly 100000 unsoid
The average price realized has been $i AZ per acre.
SO Immediately productive was expected Why, then
should not the lands constituting the only giit rom inc
Government the Company, and which II must nave
been intended should be largely relied on 70 enable tue