, 1877-09-03

The whplo aeiao Railroad job Of 1sSt.3
turnca ont t., bo n Bwintlc, aail 1t aoom,
that those con aectcd with 1t are determined
to maintain it character ~ a s,yirdlo to III,
Inst. When soAKrs ANTI went to Wm,hinc.
ton aud pla< cd tho Crolit-s1obilicr shares
whore they wou!l to tho mort good, tier,
vns not IL gr7 ,ator effort madc to obtain cor.
troll ot Coug tcss and secure swindling lcgis.
latlon than there Ia ut prosont. Thu latss.
debt stnte1n ont shows tl,at< tho account IT,
tween tho Unitod Statos and tho several
Pacific Rail,ua In as follows:
Government .Ionds outAtanCn4 S1I f}o3 i1s
Intoreat ratd BY unltea States. 49,. E, ,Dj1,:i
Interest duo ana not pala.........- ttti@i
'rota, advanced by United t,tatas 800, IN, ,l
Interest rcpali by ytfanspostntlon.... a,n7d.:M
Balance duo to tho United States
Sept. 1, l877................... 3D2., 551, l:G
Tho bonds matura in 1B95-'7, so there ars
cightoon or tweuty yoass' additional intoro,t
to accrue, at the ratio OF 80, $50, coo yoa.,
which, aftar doduou ng for repayment o!
trnnaportatlon, will leavo S5t, ,O0a), 900 to
800, 900 to DO n laesl to tho So, Oil ,1os
already duo. Tho oontracts have boen 50
manipulated by past logIxlntion t,at 10 par.
Of this Intorost ia cor.cotablo until the ,nntu,.
ity Of tho bonda, aud tho whole is sodnrsd by
asecoad mortgage only. At tho last sossion
OF Congress thoro was moaslro reported,
through tho proour ,mont Of tho Railway
Companies. Which was vigorously sup.
ported In tho Benat,, and was ouly dogoatel
by tha thorough exposure made Of 1t ty San.
ntor HoorH. This measure was 10 onabla tho
Companies to pny OF this dobs Mt litslo or no
cost to themselves. Tho samo soAomo il
proposed substantially In lottor by stnxEr
Dillon, President Of the Union Pacific lsal-
way Company, TO tho Hooretary Of the Trcas-
ury. lIs writes with rpferonno to tha. nor
ton OF the debt whiol Is owing by his Com.
pany. His offer of settlement, which il
somewhat complicated, Is thus explained by
tho New York 1imc&:
Tia letter OF Mr. SIDNEY DiLtox, FrosdeBt OF
tha Union racidc Railway. To tho Secretary Ut tho
Treasury, proposing q settlement with tho Cur
tfnmont for IL prospective claims agatnst tho
Company, offers to pay tnta tho Treasury $3.50, hM
each half year for ten yu:ArH 337a, QUO each half
year for the succeeding ten years. and $780, uoo
each half year thctrafb,f, Interest tu bo CON-.
pounded hslt"yearly at q por ecut, until the sum
20 aecTulng shall b equal to tho Government
mortgage on tho soAa. scckoncd with simple sntet'
9*b ~ sAo 1~"e "akos @t VIII "a notlcgu inst taa
esseneo OF this proposed settlement Il that when
thu aoTornmnRts claim On account Of tho subsidy
natures. about tho year 1907 Mf. DiLLoS
proposes to borrow kho money from tho tlos'
efnmtIt second time on the sAlnu tcrnls
~ Iaa original losu, but at 4 lower rate OF
iatssest. Payments OF $3.50, 0o0 ha'f-ycasly.
with compound inherent 1t per cent.
will &Rount Ia ssn ysses 10 30, TIT 6'a. This
sun, with seint.Annual iucremsnts Ut Sl75. OIL.
With interest compounded In like manner, Will
amount IN the next ten yca<a to ST.. 20, 0oS. ut
which time tho who!a indebtedness fails due. Tho
prasont Indebtedness of the Company 10 tho Gov
ernmeut pcln9 ST, COZ, lss, and tho annuul In
tstest on tho subsidy bunds being 81 83i 1D0. tho
whole indebtedness. whap 1t fAils due, nndot tho
plan. will b $40, :s5. u1J, minus 81, 600 tl'-
H., 5tH, o7u, OIL. TaI& ID tbs SUN which i'scst'
deut piLLoa xfaYoly pro poses to borrow from thu
Government, It axed tntescst chargu Of $i.ti3l'
100-tntsresl and principal 10 10 rrpad Whenever
tho Fuiss OF compound interest running III ht'
fAEoe 1t pts cent. shall oscstaka simple inteTtas
running In faroF Ut tbs uoveFnmcnt. at a'l0 per
cent. There arc psobahly other companies md 1u'
dtTiduals who would like 10 borrow 4ru1a the Cor
ssnmsnt on tho SANS takns.
It Ia hardly necessary 10 point out the DIS
honesty Of this scheme. The Company now
owes the United States IN arearags OF twel7e
yeAra' intexeat, less small gum repaid by
transportation. Tho United Stated ars to
continue to pay this Interest at 0 per cent for
eighteen or twenty years to come, getting uo
interest On these adyaaces. The Company,
inataad Of paying any part Of this Interest,"
offers to pay into the Treasury a small su'u
Annually, for which II is to be credited. nos
On what tho Company owes, but as sinking
fund at compound interest," Tho original