New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-04-04
CENTRAL PACIFIC SINKING FUND.


A LETTER FROM vICE-PREsIDENT HUNTINGTON To
SENATOR EDMUNDs-THE SUBSIDY BONDS TO BE
PAID BY THE CoMPANY-THE NEW PLAN FOR
SINKING FUND.
GENERAL PRESS DIsrATCI.l
WASHINGTON, April 3.-The communication
addressed by Vice-President C. +. Huntington OF the
Central Pacific Railroad 10 Senator Edmunds, and re-
ferred today together with the bill suggested by the
Company to the Committee on Railroads, contains an
argument designed TO show that the proposed ar
rangement Is desirable for all parties concerned,
AID especially for the Government. Mr.. Hun
tington SAYS that several safeguards were incor-
poraed in the Pacific Railroad charter In the fear II not
in the expectation, Of failure 20 complete the road ana
although transcontnenta railroad communication was
attained years ahead Of the allotted time they still re-
main on the statute book obsolete stumbling blocks
to the well meaning, unfamiliar with their ORR
GIN and are also seized upon by others ana
distorted from their primary Specification for no
other purpose apparently than TO haIass the com
panies or personal ends He then calls attention
TO the Supreme Court decision sustaining the position
held by the Pacific Railroad Company III regard 10 the
time when they liable To repay the Government ad
yances Of interest refers the earned by Govern
IDent transportiOn, but withheld from them by the
Treasury notwithstanding this decision and speaks OF the
suits now pending relative 10 the other form OF repay
ment from their net earnings &c.
Mr. Huntington further that he thinks That the
oeaseess agitation OF barren lOngsettled issues IL u
seemy and wasefu and places both parties III false at
titude. lie denies that the Pacific Railroad Company
expects escape the repayment OF the entire indebted
ness TO the Government when the subsidy bonds
mature. Although the sum viii then be from 500
100000 TO 600 the Company hopes to be able 10
repay IL In the manner and at the time 1t becomes
due. He Is aware, however, that many persons ap-
prehend that the Government will then be cOmpcled 10
take possession Of the Pacific Railroads and assume the
burden OF the first mortgage. Some regard the
enterprise as a national blessing, so great rs to bc
cheaply acquired even at that sacrifice Yet there are
others who look forward to such contingency with
pretended ALARM and are anxious 10 secure payment
regardless OF the statutes the decision OF The courts the
prior liens. the earning power ana integrity OF
property. lie says II is obvious that II his
Company is compelled TO provide for the whole or Its
second mortgage Indebtedness, well az for It's first
mortgage bonds within the lifcterm OF the bonds. the
whole vast must be drawn from the sales OF lands
and the revenues OF the road and, consequently from
the public who use 1t
Senator Edmunds introduced the bill to-day 10
create a sinking fund for the liquidation OF Govern
ment bonds advanced to the Central Pacific Railroad IL
embodies q proposition submitted by Vice-President
Huntington IN behalf Of his Company and Is substan
TALLY follows The Company Is to return to the United
States all the unsod lands hitherto granted to II In
Nevada and Utah the Secretary Of the Treasury Is
tbercupon TO place to the credit sinking fund for the
Company the value OF these lands computed at 81 90 per
acre the Company will also into the treasury Tor
account of this fund whatever 1t may have received for
lands sold over aud above 80 acre aud the coss
OF surveying Further the Secretary OF the treasury
shall carry TO the credit Of the sinking fund all amounts
the first day OF January last which not amounting at
aid dat. To- 81 OO0 shall made up to that by
into the treasury q sum in money or In any Unit cd
states bonds o. ;scurhss At par. which. with ntereA