The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-03-05
FORCING THEN To PAY Up.
THE mn PROJTDfNG ron 4 P4CYFTC
RITLROfD SINKING FUND.
n Scheme to I.iquidate their Ipdebtedne to
the G"vernment- Demonstrating the Abii-
ity Of the Two Railroad Companics to PAY.

| ~ >chcme To Istqutdate thcir Indebt etuess
the Government Demonstrating the Abii-
Hy Of the Two Railroad Companies to Pay.
WASHINGTON. March i.-Senator Thur
man from the judiciary Committee reported
to-day the bill which he and the majority ofthat
committee have been so long maturing. to com
pei tho Union Pacific and Central Pacific Rail-
| road Companies TO pay five per cent. Of their
net earnings and one-half Of their transporta-
| tion account with the Government directly into
the Treasury of the United States. and. in addi-
tion thereto. to pay the other half Of the trans-
| portation account and fixed sum in cash yearly
into the sinking fund. The bill provides that
tho net earnings shall he nsccrtancd by de-
ductng from the gross receipts merely the
| operating expenses. and tho sum paid
annually as interest on the first mortgage
bonds. and five per cent. shall be levied
on the remainder. The whole amount OF COM
| pcnsation for transportation on the part Of the
Government shall be withheld. and oue-half Of
| II applied to paying the interest on bonds guar
| anteed by the United States and the other half
shall bc turned into the sinking fund and in
| vested by the Secretary Of the Treasury in fve
per cent. bonds oi the United States. The
Union Pacific is required in addition to the Ave
per cent Of the net earnings and half " In"
transportation account. 10 pay in cash into the
| United States Treasury ssjOUOO making an
| hNhl'EhNH W W. lHtu iN IL liT llt Sink
! ing fund. s127l3ll. and TO the annual
interest account s6dG972 total aggregate Of
t.93S.2s3 annually. The Central Pacific must
! pny for annual interest account s5O0.O0O. and
| for the sinking fund Fl 100 OO0 making % total
annual aggrrgair Of tl.lpO.nDO. The c,lsh pny-
men is To- b" a. 'rrlained hy TAXI ing from the MT
| earnings rs above described tho whui" trans
| portHtion account and } percent. and then cash
| T. 10 be raid to make the total payments for
| interest and sinking fund amount To- Vt least -
| per cent. oi the net earnings. at any time II
! ~ shtlSihct1rliy SHOWN 10 me secretary ot the
| treasury that - per cent. uf the not earnincs
OF the companies for any current year are
insufficient 10 pay the interest for such
pany In respect of which obligations
there may exist lien paramount to that Of the
twenty-five per cent TO make up the interest ac-
count on the ilrs, mortgage bonds. The hill
| also provides that no dividends shall he maid
| on the capital stock oi the companies when
| there IS any fHilur" to pay the twnnty-ive per
cent. OF the net earnings into the Treasury for
| the purposes specified: and II any stnckhold.r
| votes 10 declare ~u.h dividends. or receives anv.
| ne shall he deemed guilty of misdenleanor and.
| .n conviction. shall he ilned NOT moro than
SlOuuO and be Imprisoned ON" year. The A.
| iorney-Gcncra shall sertO II that tins bill. when
! IL becomes u law, l. enforced. II either or both
| ply with the law. their atches works forfeiture
oinll rights. privileges, grants. and frauchiseS.
Inr n r,pott accompanying tins h.li Is an eN-
| cecdlngly able one. II demonstrates that the
comnanies are amply qhle t. meet the r.
| pur"mrnts OF tn" hill. and still Leave a surplus
sufficient TO pay A., per cont ON the nominal
value Of their stock. or g. pei, cent on, the
isnnIp p nfTe' w. nu% 81 H. ~ me - case ~ o. iae
| to pay are summed NJ IL follows:
sre ssr crcr i.pr ., 5 rS, e s,er,se ,nGlnt
i,luct iui,r,.t ON nr.t imnrfny. u ;tt ~, d., ,l,
cent on net carnare ra,ahle To- nj uni.r
nng' ,i,pns isw' n i y inef n.
SO" Il ~, ' o income 's sn ''' .ep e I'm
cent on s2g5sc" i % ons hs i,f o iSan.pert1.sn
account to paid thc nkinr und as rcr bi si5
among stcckholdcr sisi, slsl ~ beins about is f.r
% o,n on s nominal anonni OF IN. s,9ek or"' per cent
rn ,, W. a., ~ M ,n. amount III ne c,ni aiA WI have g. lay
ii W. report be,ome aia~ Wi. lc ssaia ioiows Wv
exi.uns law '"'"'' ""''i ga, 80,
der eA.,ins n'i law ''" "''o" 'S@oy I'm 4asn
Ir,o ,,r.n,, '''''''''''''''''''''''' ~s'',,.. ~
Cash ......................... N56r5
Total ................................. sls7isn
",'"' "'"' sl''''-N'
sl6H is1 y the above sum would ro,dr snv ssOi ~
incnt ioan ~ ''' ''''''
A. to the ability of the Central Pacific. facts
are summed NJ in the report ~ follows.
Gross earning, OF road h - operating cNp,nse. for
YEAR is7s To- I-7 hot inclusive A. stated m r1rf. NJ
he lrecor, to M stockholders w,t, =, follow. ~
Sll"- ~ - iS.J :, 1901 =" - s-St--'~ -.
is',' = - 80 ~ ls,n solamt ~ total ~ nye
II w. i,1c aitts' ini, @ H., r',ll n ~ T., go,
bonds a. well AS operating exl.f,.s nom lie r. 0 r
ccipt'. the account sad h,c years wold stand as
follows
Gross rcccipt. less operating expenses stl ot 4s II
Deduct nye years interest nrst m,rt-
gaze bonds s.35s ~ 20
x., .a.r,o... ,,r a,.. ,.,.. s-.,,,--,-,. -
Svera.r ainu mrt % y9,nc - east M :.
Five pcr cent on wheh n, ',i't II al 80 80
-
Five per cent earnings payable undcrex.
i'nng law .ay ....... .....,,.. s3ooooo -
'iu' nr i' ns ,S account p''n"e o,,o,
Into the sWkins iund onc.hai tran.porta.
uon account, say '.... . apnsn ~
Cash ................ lan,nl 90
'"''' ''... ''.'''''. '.'.' .'.''..'. sl'"t'"" -
Beng about The same amount mat the hil we report
9I., q" ii' mon rA.lhc, lHal ne somlanyt nmake
ni , T., ~ Wy ~ @ i ', '.ni W a., nhi'i 'vine
from the tact. aircaiv stiied But hS .sna t ,s
shown oonci-v hy statement, proH and los
~ the directors reports Tor $50 nnd 1876 stock
nuHsr@ hN me report int ~, appears rat atr |
numna, amount ni ihrlr 'irk amount pmd ~ ta75 5,o.
amounting 10 .a int r cent on . nominal aitoiuf -