New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-11-20
THE 0FFrR OF TIE RAILROADS.


LIBERAL TREATMENT ASKED FDR-THE GOVERN
MESr GETTING An EQUIVALENT FOR ITS CREDIT
lBY TELEGRAPH 40 rHE TRIBUNE.
WASHINGTON, Nov. 13.-Mr. Sidney Dillon,
president OF the Union Pacific aud G. F. Huntington,
vice-presdcnt o. the Central Pacific Railroad Company
have submitted TO the Judiciary Committee of tGe senate
letter in support OF The bin proposed by them 10 e-ta-
sh q sinking fund for ae ESTABLISHMENT ~ the debt of
those companies To- the Government After referring %
the fact that nearly three years ago the officers Of these
two companies called the attention q TIE Secretary o.
the Treasury 10 the circumstance that, contrary
TO tie general expectation at the inception
OF the enterprise, a balance Of accounts IN Aia
LEDGER was accommodating aeainst them. which
unless some remedial legislation was soon had would
amount by the tine became due and payable 90 sum
Which might Doe embarrassing 10 the companies 10 pay
simultaneously with their first mortgage debt, and
greater than the value OF the suborn1t-d lien OF the
Government on the properties themselves. They say
that the pr1preiy of the modification OF those parts Of
tine nets OF 1862 and 1861. which related TO She time and
manner Of payment Of the advances in the form Of
United states bonds issued TO the companies which
would definitely, ana certainly put the whole
amount In process Of liquidation. and at the same
tine put an end 20 exAaustnS and Cuprodt-
able controversies thereon. was then suggested.
Tie plan p71p8s they continued, looks 20 tie creation
Of sinking fund. with fixed sums TO Dee pad -emi-an-
nuay the Treasury. this believed TO be the
most busuc,ske aud prud a II not, indeed, the only
available cSqcileuJ for dscharens debt Of this char
acter and magnitude instead OF the present plan Of ap
rlying variable sums dependant upon the amounts due
FOR Government transportation, etc. which must prove
not only inadequate TO the purpose but also fruitful
sOurc. OF contention.
Tue Secretary Of the Treasury and many Senators
and Representative, that tme and subsequently,,
pressed themselves favor Of the establishment OF such
a fund. buJ some difference Of opinion TO tine
power of Congress % impose is own conditions on any
new settlement without regard 10 the consent Of the
companies 10 tie consequences 10 their creditors,
and also the necessary for the sinking fund
The companies, Messrs Dillon and Huntington say, are
bound to resist any attempt impair their vested rights,
% take their property without due process Of law
but at tine time they recognize that
further litigation il regard other claims Is az need
less il is wastefu namucn both parties have the
end In yiew namely, the final, full and conclusive
settlement To accomplish this the companies have pre-
pared the bin which submitted to the committee on
Saturday In they have ensraited upon their original
sinking fund proposition several suggestions maze dug
ng the last Congress by Senators and Representatives
The PRINCIPAL point OF difference when this subject was
formerly under consideration the amount OF annual
contribution the sinking fund and certain Senator's
suggested amendments which well received during
The discussion upon the bill then proposed and which
have now been adopted by the companies.
The bill ms now drawn, leaves the amounts necessary
to execute the purposes Of the sinking fund be COM
put,d by the Secretary Of the Treasury.
The new bill proposed, also extends the duration Of the
fund five years before the date when the last bonds Is
sued Ohe bulk OF The whoel. fall due. This extension
Mes,gs. Dillon and Huntington think is than a fair
allowance Tor the delay institutng the fund through
10 fault Of the companies and FOR what % them
the uumercd Withholding or large sums due % them for
several years transportation account. and is just
and reasonable because Of the furhcract that the roads
we're opened seven years earlier than the contract with
Hfs.t.
cost % the companies Ills only common justice, they say
that the sinking fund should bear interest and accu-
.ae At the RATE tho charges running against tie
companies a. the Government mas the option Of calling
in ts per cent debt, and OF using the payments the
fund purpose. In other words 10 consideration Of
the extension OF about FIVE in the maturity OF the
debt the companies voluntarily undertake 10 pay the
greater part Of it within twenty years before any part II
it Is due and to devote to this purpose merely the
revenues from the road. aided by bonds, bat also the
revenues Of their non-aded roads
In order bring the semiauual payments within the
probable ability OF the companies TO comply with this
bill ifit shall become law, without dcpuyng them Of
the power meet their interest engagements sinking
funds for their own bonded debts and the same time
TO maintain their roads up to the most efficient stand
ard the officers Of the companies deem it necessary u
retain the provision for the conveyance back
to the Government OF the alternate sections
Of laud lying along the line OF the roads
between tbeO4th meridian and the Eastern boundary Of
California. Messrs Dillon and Huntiugt0 say that this
belt Of land is 200 miles long and forty miles Wde and
was almost vaideless when received by the companies
but now has positive value conferred upon # by the
business Of their roads and is susceptible Of sustaining
immense herds Of cattle, with occasional tracts adapted
10 cultivation by irrigation, they could Only be divided
and held IN large solid tracts ~ have due
the available water. These lands, the officers say have
far as they could do served their purpose q promoting
the construction Of the railway, which was to t them
Tor settlements but 10 Long ~ the present daed owner