New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-03-12

The plan OF the is the establishment OF SINK
ing fund which shall have at the maturity OF the Dohus
paid off all the interest and about four millions OF the
principal leaving due and unpaid at that time about
S5l 900 600 1t il proposed to " divide this balance
into fifty semiannual instruments. OF when snail
be PAID on day of April and one on me Isl Gay
of ct0her in each year. with interest thereon NJ tc
same rate per annnm paid by the United states on inc
larger part of ts pnblic debt on the lst a! Oh Ja
AIRY preceding the date Of the payment Oh the several III
m Of failure or refusal of either OF the companies
to pay III accordance with the foregoing provisions Tor
the period OF six months. then the deiautinS company
is 10 he subject to the terms the present law, and the
Tinted S;aes may proceed to collect the entire
from such company at once. -,,, a., ,,,.,
II also provided that the mortgage which me united
states holds 10 secure the payment by the several
corporations Of the principal and interest OF me nous
time in force as to the semi-annua payment hereDe
fore stated.
WHY THIS SETTLEMENT SHOULD BE ADOPTED.
1t best for both the United States and the corpora
tons that present unsatisfactory condition of the
relations existing between them should be brought TO an
end and that this should he done In such manner as
shall be satisfactory, complete and lasting
Tue committee believe that the plan herewith reported
will accomplish this end. The United States VIII re-
ceive in the end every dollar OF the principal ana IN
tereSt ~ the bonds issued TO the corporation;
and the latter can meet all OF the Payments required
without emba rssment to their financial concerns Tine
fact that part of this Indebtedness is extended through
term of years Is not an important one to the United
states: for it is to receive, interest Oh
OF the most common resorts OF debtor and cred
i;or in where immediate payment Is Impractical
l
heretofore proposed this, that reserves from the
operation Of fund almost the entire principal of the
terest Thc United states Will get more actual money
OF this scheme than from any other ever roposed IN
plan which To cNtiiSulsh Tue
indie Dtedness Of these corporations at the maturity oi te
bonds involves two serious objections; FIST tny re-
Quire large to be necessarily embarTasS-
Ing to tine corporations; aud on TINS point serns 10
the committee thatit would he unwiSe to make III" pay
mets 50 large deprive the corporations OF the
ability TO meet all of their current obligations promptly
and to keep the roads In highest condition OF percc
: efficiency
greatest nterestss the Government ana che people can
nave in these roads Is 10 the maintenance oi hlgh
standard of perfection assuring RAPID ana saie trahsio
aton oi freight and passengers over me hhtS sec
ondy, thcy require the United states 20 pay too nucl III
IN order to swc The SINKING fHud 10 sum tqaa TO
the aggregate indebtcdacss1t tie maturity o the D'nS
IL seems 10 the committee that 10 ldctcli p'l i,a
can fan TO see great adva1i'ge IA the irspFCt i
winch look fu payment al thc maturity or thr bonds
WHY RATES HAD TO BE REDUCED.
When the roads first projected very few persons
had faith in theI commercial Importance The United
States desired their construction for postal and nary
purposes and they been most effective in both rc
suecs The savings the Government in these regards
nave been enormous II the companies could have oh
! tanned an amount of transportation on Government
account equal that carried before the construction
of the roads, the one half OF compensation for
! the carriage OF which tho Uaited States Is
entitled WITHHOLD and apply account Of The bonds
issned it would have exnGllished the whole indebted
arising thererom long before the maturity of the
rates charged oy them the beginning Of tur opera
ton their roads the amounts gong 10 The Govern
ment under The two provisions OF law htlclhDtiorc
cited. would. Doubtless have been s.ihcehi to discharge
the entire claim or the Uulcd states at the maturity OF
the bonds. But. Unexpectedly ana 10 the surprise Oh
BODY these roads, forming tnuous line across
/ tho continent, rapidly grew INTO great CohinercaI I'M
porttnce rms neccsSit'rd re'uooh ~ ihecs anu
/ This resulted III direct benefit to the Government
for all he transportation done for mnSt he az me
same chaig geo to private parties. Bat Is not M
probable that tue commercial earnings Of bc roads have
}ecled w nhn ID co"cted c"aeo1 viii be- ,arp. and
II
then do w II they can make up from development oi
local business the losses winch will result from compc
tiou on through business for this Development being
largely connection with the mineral deposits OF me
country he f0storcd by cheap local rates Is most
OF the of too low grade TO bear nigh rates 81
Transportation Add 10 tnis the Sonpeiii!on OF local
bic TO believe tha; the commercial earnings of the r0as
have reached their mGximum
THE NECESSARY RESULT OF HARSH TERMS.
But suppose that these considerations are more sPecu-
lators likely he realized and Congress should
ON and impose harsh terms upOn these companies. and
| exact from them buTdcnsOme aud embarrassing pay
ments-what will bc the result Why first the corpora
tons Will resist such legislation, and litigation viii fol-
low In this resistance in the courts, the companies
may be successful in the future. they have been IN the
past. Then whatever Congress may have done will 90
for nothing But suppose the companies should fill in
their resort the courts and be required TO comply
with harsh terms imposed ana 70 male ne cnpariass-
strained b. competition an nerease OF rates me ney
liable result VINO can he be benenttcdhy tina ShIey
not the pubic, they tile patrons Of the roads
| surely not the Government, for # must pay
I the rates that are charged to pr
I waite parties. Suppose competition prevents an
increase uf rateS-Wbat Will follow Most naturally
financial embarrassment. ana al inability to Discharge
The ouerous bur ens imposed THIS surely viii not tend
TO better the chances le Government }or reimburse
meut l. il not best 10 aVOn I'll OF these contingencies
by making fair SAFE, reasonable, buNucSS-ikc ADJUST
ent Of the whole case one which VIII be accepted by
the corpOrdti1ns concerned. and 1T the time,
cure absolutely the entire clam Of the Government
10 save over SlJi 100000 10 the public treasury J.,
worth an earnest effort. 70 do tins In which II
induce the hearty cooperation Of tre puoic debtors Is
better than 10 adopt mode which sinh excite their re-
si.tGnce THIS j. the plain. practical business pain FOR
Con ress TO tread The committee believe that the sub
sfitute herewith reported w accomplish all that they
claim IT, and ask tor it the favorable consideration
The Senate.
THE ELL.
| THE ACT TO BECOME OPERATIVE WHENEVER ANY
ONE OF THE RAILROADS ACCEPTS II.
.gur~gr,N- Morci, 1 --fTbp fnlloVlup il a full