New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-10-24

Union Trust CO.. goid u count. IUZGsl -
baker q MoirrlI.---.-.-----...- @0uVO 90 -o.-,, Cd,
IOLd.......-..-------.-.. tOlo'"S -
Debt cash assets 357 Il
The company hold other ass'ts wLcI. after elimnai
ing from its statement sundry items. and taxing the
couipanys estimate uf the remaining assets
embraced ~ the statement, amount 10 S5.0ll'fl3
T, consist OF stocks and bonds in other rail
companies telegraph and steamship shares, county
bonds Issued y counties in Nebraska, Colorado etc. &C
Tie ross earnings for tue year ending June 30 1877
were sl37I93i3 go for tIo year enlin June 30 1875,
S12Ii3g9O 90; increase for 1877 1876,
II COS 353 10; net earnings for the year 1877,
ss3I7OgI So; net earnings for tine year 1876
S6.G5G17l AZ; increase for 1877 over 1876,
IL GJOg2O rs. This IL a surprising result considering
lie general depression which has rested the bust
ness OF cLe country and fully justifes the opinions
expressed in former reports by the Government directors
Of railroads. tne immense possibilities OF this road
What amount is due the Government for the year.
der the per centum reseryationi heretofore esti
mated by the directors. the case Is this;
Net earnings - O9l 50 less interest on FIRST mort
age bonds reduced % currency at per cent about the
average Tor the year, Sl732,273 20; net subject To
per cent ON basis 81 5siSls 80 i've per cent OF
This amount, 1929. 24O OIL 10 IS understood, how
ever that the counsel representing the Government
el that no reduction should be allowed for interest on
Astuortgarc bonds. II this claim should sustained
by the court. th,n there Should be added TO
the above Ss6GGl 80. making total for year
under the 5 per cent reservation " Silj.9O2 "a
lyon this subj CT there Is wide difference between
rar Government AID the company the Latter Gaining
las the Government directors have stated IN two former
r.ports tuat in determining what its net earnings are it
a, entitled 10 oedueb from its gross earnings the
mems OF interest and all other payments ana liabilities
canning within rule laid down in ~ John against tie
Erie Railway Company 22d Wallace. l36 Should the
Government maintain it, clam by Judicial constTuc
tFrfFft ola
Of the act Of July 1. 1862 in harmony with that
on which the Secretary the Treasury and the cCun
M conducting the ease, insisting the paYrent OF the
,sultu1 Judgment is provided FOR by the terms OF
IA stipuat.on entered by the counsel and the re-
s.ecye companies. Tie amount covered by TINS stlpu
ration added the amounts which have become quo u
me company ro,h The United States account OF trans
ortton since tn- the Judgment h the suit down
- Inn. 30 1877 Is stated to lee 3l0l,677 N sum large
enough i. is supposed pay Judgment u be rendered
IN q, pas- " the clam lac5 by the Government and
largely IN zcess or one sustaining the companys position
- that in any event the Judgment VIII ~ once be paid
Section six Of The account Of July l. 1862, provides
Alter tho road l. completed until sad bonds and IN
rst are paid AZ least per centum OF tine net earnings
Of saall also De annually aPpHeu ~ INC p"S'n
1r date NJ the completion OF the road has been aud
. tir controverted question between the Government
and the company. Upon THIS question tue "0Ver"meht
directors expressed their opinion In the annual report
for the year ls72 From that report the following para
-raIh is quoted
uer. arises an important question Il the road com
sedt We THINK 10 Is. within AIR ana reasonable sig
nee OF tHe ln our Judgment u has been cou-
pet,d for period long enough 20 embrace tno Two yeas
n,i., Junr 80, 1872 the Government Directors nave
never change from tA.s po-uJn; thl- OPINION eOVea
- nerioc from the connection OF the tfachs Ul tAo
In on Pacific karOad and tue Centra racine llilfOad
~ california 1863 aud Is followed ~ tic ,Iotefn-
n m fne prepal VI Ito claim In TOE sui above
rrrrred to- Inc company hes always conroycrte tbs
po.iton the Government Directors ana now That u Is
f,r Tr.tfl,G fafe ,t.eSit
contest Is linz tAercOH
In te reports Tor the years 1874 1879 and 1876 the
Government directors treated at some length the reia
i,s nj the United States the company, growing out
~ the advance by former to the latte OF bonds to
-, rho copstruction Of its road. The total amount of
1T, IN ADVANCED is ST. 236 5l2. The duty OF the com
, IN reimburse this amount with ali the interest PAID
and 10 be paid by the United States Is clear anu undls
uted The road hus, the surprise OF almost every
ono nroyed itself bs strong growing remuneralNe
nronerty capable Of carrying oil its burdens ana
fi.cbargng all its obligations. There ought 10 DE
e,et netveen the United States sand the
.-. n, the road There Is no just reason why there
,d no The United States advanced the bonds IN the
p named and paid, and Is Still paying the interest,"
,bersop This ought 10 be paid but undrr tue u
son OF the supreme Court OF the United otaoS II WI"
30, hec,rne due until maturity OF the bonds thirty
years from tho date their issue To et IL run on ae
cumuatlne until end Of TINS time Will Dc tne "ors'
..rhIe poIicy and runous at best II Just accomm0-
can ba arrived at for the avoidance OF ths result
- onld Dc wise Tor all the parties concerned u AVIAN
themselves VI 1t.
Tho ni.n suggested by the Government directors 10
,hr rem RI for the year 1876, Is believed TO De pac
- . which II adopted. ensures an absolutely fu!l
-, IN rho Government Of every dollar OF It's invest
-, e., the road That plan differs from Others that
-, h,,, ,rouo-ed by tue company in two important
-. II proposes to retain the one-half Iansporta
ton and 1--WE Der sntum amOunta OF payment no"
,ld for and the termination u the sinking luna al
hstury of the bonds and security Tor tho reblahuoi
a.. aud unpad at the time, the sum 10
A. ,..barged AZ the rate Of not loss than
=. ,o,,b ner apnum further consideration OF the
-, l.. led The Government directors to the concu-
u that that plan be modified to some extent WIN
., Inc mi uly burdensome 10 the company IA the
ut Of IFS affairs aud shortening the time foi Inc iil
| ,si,ubut-enrut OF the Government Inc anio1n' VI
| h,es issued 10 the company BY the UhIeu o'"Vo' n
- o2s 80 Interest che same al per cont lor
80 years u s4926OOOO The total Will be at the
,a,,,r,rv Of the bonds s75.262,5l2 Presenting that
| a.. Tinted states will Judgment on the
his of ia claim In the pending i've per cent SUIT ana
,t,n, unon the Ike basis five per cent OF net earn
~ rom the beginning Of the salt 70 June TO- 1917, the
Government VIII receive nom that source TO sd uA'e
t a. a5O 900 and will paid % said date oy one
half transportation, about si273,7O5 80 or total Oh
se o237O5 80, leaving total remainder OF s"''''o'
! .O6 10 Estimating the annual average ar1'hs ifo
half OF the transportation and nVe por cent OF tne
claimed By tho Government IN the pending suit iof eus