The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1881-04-14
TIES.
The central Pacific In tor a
Big NuIt-Reflrnad News

Boston, l2.-0ensrHl Haupts the new
manager OF the Northern Pacific, will give
the division superintendenc5 70 FraRk
d. Forbes, Of the Boston Traveller 3
New York, 12.-Itmes' Washington:
Prepsrations aie being made At the de-
partments Of the Interior and justice 10
institute in the courts At San Francisco
proceedings against the Central Pscific
Railroad Company, for the purpose of
havirg vacsled the lease Of The souherB
Pacific and western dislslon OF the Texas
Pacific Railroads to the Central Pacific
CImpany, upon the groundl hal, the ar
rangement Was entered into to divert
trade from tina main line. OF the Central
| Pacific, In which government Is largely
| Interested Commissioner French be-
| lieyes that the Central Pacific Compan5, 4
in pursuance oil, a deliberate and settled
policy to defrAud government. are pro-
ceeding u build up the new route from
San Franci.co to the Missouri River,
| running for a long distsbce parallel with
The Kansas Pacific road, and that they
are using the business and property of
the Central Pacific road TO build up sue
cessful cOmpetlt on. -sO-' .
The we,teFn part of California is ira
versed By q number of short lines which
ret a. feeders TO the Central Pacific, and
/
company. These lines contribute . large
amount Df business u the main line, and |
all business thus contributed Intended for |
the eat is sent over the southern route,
and, of COURSE diverted from The main.
line. While the business of the feeders is |
Abstrscted from the government line, |
and given to the southern combination, |
the operating ex penses Of the small roads |
are charged to the Genital Pacific road. |
Under the Thurman act, Is per cent. of |
the annual net earnings Of the Central |
Pacific must be paid into the United |
States treasury for the compsDy's sink |
ing fund. Mr.. Huntington has always /
resisted this payment, but finding that be /
could not escape, he has, it is alleged, |
deliberately planned 10 reduce or
wipe out the net earnings of the Central
Pacific road by divertiog business that
legitimately belongs to that road to his
leased southern lines, thus building up
these lines at the expense of the Central |
Pacific and at the same time keeping
from the United States the annual con-
tributtOn to the sinking fund established |
fer the payment Of the pany's 10
debtedness, 10 the government Com
missioner French has laid these facts be.
fore the attorney general who will direct
the United States attorney at San Fran
cisco to bring suit in that city to enjoin
the Central Pacific company from con-
tinuing the lease made with the Southern
line. and Commissioners Frerco willlesve
here for the Pacific Coast next week
superintend the proceedings. The COM
missioner will also Institute suit against
the same company in connection with
the payment Of dividends in February
hae ~
dividend Was declared in February 1880,
there was a deficit, according to the
figures of the commissioner, of over
81 300, 00e, and IN February last there
was an additional deficit of over 81 & co.
00O. Tue suit brought in New
York in cynnection VITA this questions
was set for trial during tie early part of
the present month. but Judge Blatch-
ford, without notification TO The repre-
sentatlves Of the governments postponed
the trial until next month ~ Under in-
structions from Attorney-GeBeFal Mac +
Veagh, q motion was made in the United
States court at New York lest week by
United States Attorney Woodflrd TO va
cate the order Of poslpenement, but the
motion was denied. AppIehendi0g fur
{ her delay in New York, other suits will
Dc entered at San Francisco w4h the
view OF obtaining an early decision.
There Is another point Ct contreYei 81 be l.
tween the Central PSci6c Company and
the governmeut,5l lin reference TO the
amount which the company owes the
sinking fund for the year 1881. During |
1879 the company's earnings were about
ST., OU0, o. O., and the amount paid the
sinking fund for that year, based on.thesel
was about $500, O6O. During
1880 the earnings were so, 000, 0Ju, ) ct
Mr.. Huntington insists that the amount
10 be paid the sinking fund for last year
should be o-larger than the sum paid foF,l
the preceding years when the earning.
were S3,0OO, UO0 less. This-questieR will
also be pressed for settlement by Com l.
missioner French. ...Haa 80. 81.
New York, b. TFi6stne'S Washing
ton: Southern democrats are very muen
by the condition of their psriy
ia Missouri, as shown by the result OF
The spring elections IN that state. Said
4 democratic, senator to-day: ! was not
worried by the result Of the
slection in st. Louis, although that was
bad enough; but l confess that the sue
Gees Of. the repu blieRns and independents
in go mary OF the -ller cities through
Dut the ,tate has surprised me, and makes
me ieel very uneaey.
In convers alton with q Tribune cor
respondent Malone, referring to Beek's
tesire 10 discuss the readjusting and
Bourbon Question before the people OF
remarked: l should be very
glad TO have him come to Virginia and
DO that. / would gcarante him good
audiences. and he would find Virginians
able and ready t. discuss this question
or any other with hin. be would not
need to bring AN antagonist with him.
He would find plentv of Vir.iniRns