Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1878-03-27
By Telepraph to New York Tribune

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condition of the account between the
Government and the Union Pacific
Company:
Capital stock all paid. ........ $50, 1852, 300 %
Government loan, principal ..... S27, 236, 512 90
Interest paid by Government. Is, 500, S01 As
Total Observation-Disclosures 43. 2O6, 1863 As
Interest repaid Government by half
transportation account, and COW
cred into Treasury. ............ 5, l34, 81 "a
Balance due Government Jan 81,
1879 exclusive of its claim for
interest upon the interest it has
pald. 900, Va 800 Oh
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 100000 equals S., $685.
652, leaving $35, IL, 333 81 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 $685.
10. The 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, as
proposed to be amended, the floating
debt of the company may be left out of
view, as it is very small, LESS than ST.
100000 and the available assets of the
company are more than sufficient to
extinguish it at any moment. The
Immigrant bonds may also be left out
of view, for the Immigrant is sufficient,
not only to pay the current interest
upon them, but also the principal when
due, and leave a large surplus to be
applied to the other Indebtedness of
the company. The Immigrant WAS
about 100000 acres. The net re-
ceipts of the company for 1877 were
$S,317 ,0915S, and the average net re-
ceipts for the last four years, Sc, 547, )
1891.
The conclusions of the committee
are as follows:
From the foregoing data, it is obvious
that the company can pay It's interest
upon all its obligations, and the sums
payable by it annually under the law,
rs 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,
900, and have a surplus left sufficient
to pay a dividend annually to its stock
holder of A per cent on its nominal, or
6! per cent on the present market val
ue of their stock The amount the
company will have to pay annually to
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, S245,661, one-half transportation
account payable under existing law,
$421 81; total, $666,672; into the sink
ing fund, one-half transportation ac-
count, say S421 81; cash, SS5O,OO0-
81, 800; total, S1,93S,2S3 AS the
annual interest payable by the Govern
ment is 81 1884 1902, the above sum
would provide only $3O4,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 Central Pacific Com
pany:
Capital stock of the company paid
in Observation-Disclosures. -. S54, 275, SOC. CO
Government loan ............. :. 25, SS5, 12O 90
TO estern Pacific. $40, $50. OO
Total. ............ ..... s27, s55, $50. OC
Interest paid by United States to
Oct. 81, 1877 on Central Pacific
loan and not reimbursed. II, $40 AT IL
Interest paid United States to Oct.
81. 1877, on Western Pacific loan
and not reimbursed. 9SS, sol. "a
Total Oct. 81, 1877. 80 Sal, 1874, O1S. So
This is exclusive of claim by the
GOvernm ent for interest upon the in
terest it has paid. The Government
pays in semiannual installments in.
terest on its subsidy bonds, amounting
annually to per cent On 527 1856, $50
or 81 81 ,34O.SO.
The funded debt Of the company is
given at S55,457 900, and the annual
average net receipts is $S,3O0,965.75
Deducting the interest on the first
mortgage bonds leaves 5000 ,624.95,
per cent Of which is 1891, 4S1. The
committee continues:
mating the 5 per cent Of net
earnings and half the transportation &C
count in the future at 100000 in round
numbers, we propose that the other
half of the transportation account, say
100000, shall be paid into the sinking
fund, and that the company be requir-
ed to pay into the same the further
sum Of $1,2OOO00 annually. This
would require an annual payment to
the Government and sinking fund, &C
cord1ng 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 100000
or 100000. Into sinking fund, one
half transportation account, say $780,
900: cash, 81, 2O00 900 or 81 100000 total
81 900, 900, being about the same amount
that the bill we report requires Of the
Union Pacific. In 1876, after paving
all expenses and interest, it paid divi-
dends amounting to s per cent on the
nominal amount Of ck,-amount