Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1877-11-21
Congress and the Pacific Railways.

There is one measure before congress
Of more importance to the people than
either the silver bill OF the resumption
repeal bill. This measure is Senator
Humans bill before the senate to COM
pel the Union and Central Pacific rail
ways to provide for the payment of their
indebtness to the government. The
measure Is at present In the hands of
the Judiciary committee, which is com
posed of the following senators: Ed
munds (chairman), Conkling, Howe,
Christiancy, Davis, of H., Thurman and
Mcdonald Itwould seem that the peo-
pie Of the United States might hope to
get Justice from that committee, as it is
composed of a goodly number Of the
Oldest as we'll as the ablest senators of
the United States. But the lobby is
there, and, of course, it is monster lob
by, and composed Of many of the
shrewdest lawyers in the country. A
dispatch. however, says the Judiciary
committee will insist on a permanent
plan of settlement now, and a plan of
their own. They find that the net earn
ings of the Union Pacific last year were
100000, and the net earnings of the
Central Pacific $12,00O,OoO, and that
both roads are in every way able to pay
a fair share annually of their indebted
ness to the government, pay interest on
first mortgage bonds, declare stock div
idends and meet all other obligations.
At the last meeting Of the committee
for the consideration Of the subject, Mr..
Shellabarger, of counsel for the Union
Pacific, cited printed argument, and
Mr. Trumbull, for the Central Pacific,
submitted an oral argument Both
were mainly on points of law, counsel
contending that under the act of 1864
and the decision already made by the
Supreme Court of the United States the
government could not compel the pay
ment of either the interest OF the prin-
cipal of the bonds till they became due.
At the next meeting Of the committee
Messrs. Jay Gould, Sidney Dillon, c. P.
Huntington, and others representing
the Pacific companies will submit a
plan Of their own as substitute for
Mr.. Humans bill, which is to this eff
feet, it is believed: "The Central and
Union Pacific companies to pay the
government 81 100000 in cash at once,
and then to agree to pay such sums per
annum into sinking fund as will liqui-
date the debt and interest by the year
1905, with a return to the government
Of all the lands granted to said roads, at
So an acre, the total of such valuation
to be counted in with the sinking fund
account" If this is not accepted, it is
said that the companies will agree to
the plan submitted by the government
directors of the Union Pacific in their
last report. This differs from all others
submitted by that company in this re-
spect: it proposes to retain the one-half
transportation and 5 per cent. modes
of payment now provided for, and
ermination of the sinking fund at the
maturity of the second mortgage or
government bonds, and security for the
remainder due and unpaid at that time,
the same to be discharged at the rate.
of rot less than one-tenth per annum
In the Union Pacific company alone
the amount of bonds of the second
mortgage and interest to date of matu-
rity of the same reach the enormous sum
of $76,O0O.O00 The government di-
rectors say that the additional fact ex-
lists that the first mortgage bonds have
precedence of the government lien, but