New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-03-06

EXTRACTS FROM TIE SENATE REPORT on THE
SINKING FUND BHL-THE PRESENT STATE OF
THE ACCOUNT WITH THE UNION AND CENTRAL
PACIFIC.
Icy TELEGRAPH TO THE TRIDUSE.I
WASHINGTON, March 5.-The Senate Com
mtee on the Judiciary, in its report accompanying the
Pacific Railroad Sinking Fdnd Bill, presents outline
of the arguments favor OF the The follow
ing statement is given show the present condition OF
the account between tho Government and the Union
Pacific Company
Capital stock, all 76230O 90
Government loan, principal 2S56d2 90
Interest paid by Government l0,969Sol 20
1Dtcrs1 repaid Government by alftransporta
ton account and covered into rreasury- 6l3io27 81
Balance due Government January l.ls79. ex-
elusive OF its claim for interest upon the In, 49, no. .,
Bat the company claims further credits that have not
been allowed and Of which are In litigation towit
81 299652 plus S1,600.000 equals $2S99,652, leay-
ing S35 1888 81 the Indebtedness to tue Govern
men should said further credits DO allowed exc usive Of
tho claim interest upon interest above
mentioned.
The total funded indebtedness OF the company June
20 1877. was $7s7337I2. The committee then goes
on say:
In considering the question Of the ability OF the
company to s S TS to be- amended
the the foatins' debt OF the company may be Lett
600 and the available assets Of the company more
than sufficient to exIngaish al any moment The Land
for the land grant is sufficient, not only
to pay current interest upon them but also the prin
to the other Indebtedness OF the company. The land
grant was about twelve million acres The net receigts
OF the company Tor 1877 were SS,3l7O9l %, aud me
iis' 81. "'' '''''F'' " Wv ~
The conclusions OF the committee are as follows:
From foregoing data, it Is obvious that the com
pany pay its interest upon all ts Obligations ana inc
sums payable by 1t annually under the law, as 1t now
exists. allow the Government to pay the other One
half or the transportation account mo the pro
posed sinking fund and can ANNUALLY ~ d pay into
have q surplus lett sufficient to pay dividend
annually to its stoclholder OF 4l2 per cent on its nom
na Ga per cent on the present market value OF er
stock. The amount the company VIII have e. pay an
nually the Government and the sinking fund;
should the bill we report become = law wiz
be about as follows per cen, % 81, net ct, earn arm
inss payable under eX'sng law, S2loooi, one nan
$4213ll; total, S666672; into the sinking iund one
900 81 27i 300 total II ,93s2s3. Az the annual in
terest payable by the Goyernns MT - OolIyO ~ me
payment OF tho principal OF tne Government loan
The following Is the committees statement OF the
count between the and the Central Pacific
Company
Capital stock company paid 800 oC
Government loan 23ss5l20 OG
TO Western Pacific lJ7O0d0 ~
$50. ESQ OC
Interest Sii paid by United states to octcDer5 81,
bgrsid l2,5,0447 IL
M Wele Pacide loan and not reimbursed 9ss 1891 81
Total October 81 1877 80, 0lS 90
This exclusive of claim by the Government Tor In
teres upon the interest IL has paid The Government
pays In semannual nsaments interest on It's subsidy
bonds amounting annually to per cent on S7,sso,6so
| OF $l,671,3i0 so.
Tie funded debt OF the company Is given at so54o7
OOO and the annual net receipts Ss,3oo96o 40
| Deducting the interest the first mortgage bonds
leaves SO 62i o. per cent Of which Is 1881 ,4Sl
| The committee continues:
Estimating TIC per cent OF net earnings and haf th