National Republican. (Washington City (D.C.)) 1872-1888, 1878-03-18

poses To extinRuish the Indebtedness Of these cor
poIations M Tie maturity Of the bonds involves
They require payment. so lsrs. as TO b neces-
sary embarrassing to Interpretations and on this
unwise to make the payments 30 large as to dc;
priye the corporations OF the ability TO meet all
q their current Obligations promptly, end g keep
| and efficiency OF 6rst-clas railways
One of the greatest interests the Government and
ten ten Of RisS standspd 81 peroction. assuring
rnpid and safe transportation OF freight and pas
| scngcr over their lines.
persons had faith In their commercial importance.
The United States desired tirlr construction for
postal and military purposes and they have been
Government In these particulars have been enor.
/ nous. III the companies could have obtained an
equal 10 that carried before the construction OF the
roads tho one half Of compensation for the carriage
OF which the United States Is entitled to withhold
and apply on account Of the bonds issued, II would
have eStlngushed the whole indebtedness arising
therelrom long before the maturity OF the bonds,
and II the companies could have maintained the
rates charged by them in the beginning OF the
operation OF their roads the amounts nccruing To
ne Government under !ho two provisions OF law
eent e SSh wouf hs Snrs claim Of Se
United States at the maturity of tho bonds.
But Unexpectedly and 10 tie surprise OF every
the Continent rapidly grew into great commercial
| importance This necessitated a reduction Of
rates and resulted in direct benefit to- tho Gov.
ernment for all the transportation done for II must
| be at the same rates charged 10 private parties
But 1t Is not improbable that the commercial earn
ings Of the roads have now reached their maxi
/ mum limit. Other lines are projected and In
course Of construction across tho continent. When
completed, competition will be sharp and through
| rates must be reduced The companies will then
do well II they can make up from development
oflocal business the losses which WIN result from
| competition on through business for this develop
ment; being largely in connection with the min.
eral deposits ofthe country, must be fostercd by
cheap local rates as most Of the ores are Of too low
grade to bear high rates OF transportation. Add to
cuisines and Il Is not unreasonable 70 believe that
The commercial earnings of the roads have reached
But suppose that these considerations are mere
speculations not likely to be realized, and Congress
should 40 on and impose harsh terms upon these
embarrassing payments, what Twill be the result ?
First the corporations will resist such legislation,
and litigation will follow. In this resistance in the
courts the companies may be successful In the fl.
ture as they have been in the past. Then what.
ever Congress may have done Will 60 for nothing
The ,hGd fail In 1hs
ing. payments exacted, what must foilow'
rates is the Inevitable result. Who can be bone.
fitted by thlsH Surely not the public, for they are
the patrons Of the road. Surely not the Govern
charged to private parties Suppose competition
prevents an increase of rates. What will follow
Mot naturally financial embarrassment and an In
This surely will not tend u better the chances oil
the Government for reimbursement. Is 1t not best
TO avoid all Of these contingencies by making
fair safe, Reasonable buSiness.likc adjustment Of
the whole case? One which will be accepted by
the corporations concerned, and at tho same time
secure absolutely the entire claim OF the Govern
mcnt? To save over sl20OOO0D) to the public
Treasury Is worth an earnest EFFORT. -,
To do this In way which will Induce the
hearty cooperation Of the public debtors Is bet
Der than to adopt mode which shall excite thcii
resistance. This is the plain practical business
hat the substitute herewith reported will accom-
psh oil that they claim for It, and ask for 1t the ia
vorablc consideration Of the Senate.
The practical operation of the plan proposed Ia
this bin Is illustrated by the following statements
The United States bonds issued to the two com
panies are:
10 the Union Pacific Railroad Company, princi
pal. 'sZ'zJboI
Add thereto thirty years interest at six
per cent. fsuzo,'Z
Principal and interest due at maturity. 762G2, 23
To the Central and Western Pa.
cifc Railroad Companies. .SN,S55,6SO
Add thereto thirty years inter
est, at sixiper ceiit........... bO1iO,22l
Principal and interest due at
maturity. ................... 1895, 90
Or together total sum paid and to be
paid by the United states. .......... 1854 25s, IS
The average date of maturity of the bonds
as appears from calculations of the
| treasury department. Is given as Oi
July !. 1898, (see note to page %, report
No. 40, House of Representatives, Forty
fourth Congress frst session. Add the
above twenty seven months interest to
October !, 1900, at six per ccnt.......... 1914
sum Treasury edgers TO be liquidated l6 ,695 So
Deduct rcpayments by one.half compensation
for services rendered up to and including MarCl
81 1873. estlmated:1
For the Union Pacific Company. s6,OOoOOO
For the Central Pacific Com
| pany,,.. ....,................. 3,VoOOU
|
Balance to be provided for under this
plan. .l12,O9h ~
+The amounts standing to their credit on the TIE IS
s7,7i respectively ~ addi,io9 q which her
claims are pending for large sums alleged 10 be du
hsh 70 would d he mgrTeraS FAR nScv h
mate The exact figures are not material to this cal
There Is retained In the Treasury, under the nc
Of March 3, lST3, one-half the compensation 70
Government services, amounting to a large sum
. which under the decision Of the Supreme Court.
due and payable to tho railroad companies anC
which proposed be held In the Treasur
and turned over as q nucleus Of the sinking'fund
This sum, ike tho Foregoing cannot AT present b
Z determined with accuracy by reason Of so large
proportion Of disputed or unadjusted account
It Is believed to be about one million dollars 70
each company on January /, ISIS, to be increased
e by what shall accrue from the same sources, ;
March n. ISIS. If 1t should fall short of that sun
1t is required to be made up to that sum presently
r pert as 10 the working of u sinking fund con
c situted, and have asceraincd that sinking
a fund commencing with 81, 0COOOO, In hand April
1878, and semiannual payments thereto of 500 90
Z the first being made October l. 1873, with thre
t per cent. semiannual Accommodations thereon
would amount, October !, 1900 the date of the las
@ payment flor each company to sjnlil i26; O
i taking the two companies together, the amour
4 which will have accumulated will be ut lea'
9 slOO, S30i5; or two-thirds of the total amour
]. which win have been paid out of the Unite
y Stetes Treasury by the date when all the bond
!, have been redeemed leaving balance to b
lquldated In the manner described of S52il2,J $50.
i or this balance upon the above estimate land tn
actual figures will not vary tar from IT. there wOul
9 be due from the Union Pacific Company 81 707
$50 and from the Central Pacific s2s,6lI ,s9i
o Dividing these SUNSHINE my instalments In tn
: manner proposed, would require from the forme
n company u semi.annual payment Of principt
:. sum of A75 053 and from the latter compan
of s572 29s together with the interests from Octobe
1900 accrued on the entire unpaid principal
J. ut whatever rate per annum the Government ma
be paying oil the greater part of the public debt o
the LIST day OF January next preceding each pay
mcnt.
RRUT(i(.USTG