Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1878-03-27

Government loan. principal 800. SCI, 296, SIC. 90
Interest paid by Government. -. Is. 800, sol As
Total. :................... $a3. .6, 1853 As
Interest repaid Government nv half
transportation account, and COW
cred into Treasury. 8, 1874, s27 "a
Balance due Government Jan. 81,
1879, exclusive of its claim for
interest upon the interest 1t has
paid .................... ..... FsS, Oh, 9SS 81
But the company claims further cred
its that have not been allowed, and
some of which are in litigation, to wit:
81, 292, 652 plus 81 600, 900 equals s., $780,
652, leaving $35, IL, 33S.G1 as the in
debtedness to the Government, should
said further credits be allowed, exclu-
sive Of the Governments claim for in
terest upon interest above mentioned.
The total funded Indebtedness Of the
company June 80, 1877. was $7S,733,-
712. Tho committee then goes on to
say:
In considering the question of the
ability of the company to comply with
the requirements of the pending bill, rs
proposed to be amended, the floating
debt of the company may be left out of
view, as it is very mall,-less than ST.
100000, and the available assets of the
company are more than sufficient to
extinguish it ut any moment. The
land grant bonds may also be left out
of view, for the land-grant is sufficient,
not only to pay the current interest
upon them, but also the principal when
due, and leave large surplus to be
applied to the other Indebtedness of
the company. The land-grant was
about 100000 acres. The net re-
ceipts of the company for 1877 were
$S,317 ,091.5S, and the average net re-
ceipts for the last four years, $751;
1891.
The conclusions of the committee
are as follows
From the foregoing data, it is obvious
that the company can pay its interest
upon all its obligations, and the sums
payable by it annually under the law,
as it now exists, and allow the Govern
ment to pay the other one-half Of the
transportation account into the propos-
ed sinking fund, and can annually pay
into the same the further sum of $780,
600, and have surplus left sufficient
to pay dividend annually to its stock
holder of ~ per cent on its nominal, or
81 per cent on the present market val
ue of their stock. The amount the
company will have to pay annually 10
the Government and the sinking fund,
should the bill we report become a law,
will be about as follows: 5 per cent of
net earnings payable under existing
law, $245,661, one-half transportation
account payable under existing law,
1921 ,311 total, $666,672; into the sink
ing fund, one-half transportation ac-
count, say $42l,311 cash, $S50,OO0-
81, 271 300; total, 1898, 2S3. AS the
annual interest payable by the Govern
ment is $1,634, 1902, the above sum
would provide only 1904, O92 annually
for the payment of the principal of the
Government loan.
| The following is the committees state
ment of the account between the Gov
eminent and the Contra! Pacific Com
pany:
In NEUTRALITY-SUSPICIOUS.. -. s5i, e75, 500 60
| Government loan. .,,........ :. Is, 1855, 40. 90
To Western Pacific. ............. 1870, 500. W
Total. ............... ...... SCI, 855, $50. 90
Interest paid by United States to
| Oct 81, 1877, on Central Pacific
loan and not reimb lrsed IL, $40, A7 II
| Interest paid United States to Oct.
| 81. 1877, on Western Pacific loan
and not reimbursed .... 9SS, S0i 81
Total Oct. 81, is77....... e. Sal, 36a 0is IS
This is exclusive Of claim by the
Government for interest upon the in
terest it has paid. The Government
pays in semi.annual installments in
terest on its subsidy bonds, amounting
annually to 6 per cent on 81 $50, $50,
or 81 ,671 ,34OSO.
The funded debt Of the company is
given at $50, 457 900, and the annual
average net receipts is $500, 96575.
Deducting the interest on the first
mortgage bonds leaves $6,629, 64.95, 5
per cent Of which is 1881, 4S1. The
committee continues:
Estimating the 5 per cent Of net
earnings and half the transportation &C
count in the future at $500, 900 in round
numbers, we propose that the other
half of the transportation account, say
500, 900, shalkbe paid into the sinking
fund, and that the company be requir-
ed to pay into the same the further
sum Of 100000 annually. This
would require an annual payment to
the Government and sinking fund, ac-
cordlng to the foregoing estimates, about
as follows: Five per cent OF net earn
ings payable under existing law, say
$500, 900; on half transportation account
payable under existing law, say s2OO,0U
or $4,000. Into sinking fund, one,