Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1881-06-17

And let me turthet noeo tuss i ~
more than ever impressed with the sxpe-
dissoy not to say necessity Of . oonsoh.
dstion Of your lines With those Of the
Union Pacific, 20 a. to fulhll or carry out
the original intention Of Congress, -
Get forth In the charter acts. such
consolidation being the only means TO
obvlats many serious difficulties. present
and prospective. which will doubtlsss
involve other companies and interests
and tend to impede In some measure the
prosperity Of the whole country. Aitsr
careful consideration. E. b. Miller, IT,,
Secretary OF your company. and myself,
have arrived at . satisfactory eonolusion
q 10 the basis for pro-rating business
between the subsidissd and the IN.
subsidizsd portions Of the rail-
roads operated by your oompa.
nv, but while the settlement Of
1879 was made upon the nearest ap.
proximation to thai which vas Believed
10 b Q fair settlement, owing 10 the
changing circumstances and conditions
which are liable TO ooclf from time to
time, BY the settlement Of 1880 the total
amount required from your company,
under the Law, will b . little over one
million dollars. Of which $500, 900 has
been already paid By transportation.
This sum-, and . much larger sum. prob
ably, for 1881, can. ! am satisned, DO
readily paid BY your company. without
in m way preventing or interfering
With the payment Of dividends OF as
least six per cent. per annum hsreafter.
The uncertainty which attaches to the
asosrtainmsnt Of payment TO the govern.
msnt annually under the existing Law,
and the vulnsrability incident 10 any
company subject to special legislation
by Congress, indicate that at an early
day all the subsidissd companies should
negotiate loans on the basis Of present
value to discharge their debts to the
United States whom the same shall be-
come due, and TO place such fund beyond
~peradvsnturs the amount might be do.
posted in the Treasury OF the United
States and interest allowed at such rate
a. agreed upon.
Since my last interview with you /
have read the lease under which your
company 10 operating the Southern
Psoiho Railroad. The Southern Pacific
Company srronsously reported that this
lease vas tsrminabls whom the eastern
connections we're made. Your own
company failed to report the terms OF
the lease at al, and NO copy has been
forwarded 10 me u requested. Nov.
upon reading the lease. Il appears u has
nearly four years yet to run. which fact
puts an entirely different phase upon
the main question at issue in regard to
the Southern Pacific. that Of the prob.
able cancellation Of this lease whenever
the road should begin . large increase Of
earnings. ! have no doubt that the net
increase Of earnings Of the Southern
Pacific In the next four years Will exceed
Any losses for the last four year. Its gross
earnings for 1880 being nearly $4,000
600, With considerable net earnings, be-
ing above both operating expenses and
rentals, 20 that the lease will eventually
result In . large gain rather than
any loss 70 your company. For
this and also for other reasons
I shall deem IL my duty. al IN early
day, to oommunicats with the Attorney.
General OF the United States with q
visv to Q dissontinusnos OF the proceed
inRs instituted seainst your company In
the Circuit Court OF the United States
for the Southern District Of New York.
Very respectfully.
Tnro. Fiucz. Commissioner.
Hon. Leland Stanford. President Gen.
trail Pacific 3. B., San Francisco. Gal.