National Republican., 1882-12-11

Balance in favor of the United States.
but not due until maturity of the
principal 1895, 1899. ............. 103 314,7S 25
SINKING FUND INVESTMENTS.

SINKING FUND INVESTMENTS.
In treating of the subject of sinking fund
accounts (Which amounted on June 80 last to
s., 65l the commissioner says that it
was not foreseen mt the date of passage'of the
act that the premium on United States bonds
would rise to the degree it hat, nor were the
late conversions of bonds expected. The last
investment was made April 6, 1881, at pre-
MUM as high as 30 per cent, and on June 30
last there remained uninvested $685., ,32S. so,
which amount has since been largely increased.
The fund has evidently not accomplished the
result anticipated, and since April, 1881, may
be regarded as having practically failed for
want of suitable investment. In view of the
low rate of interest returned from the invest
ments made by the secretary of the treasury,
the commissioner says:
g l deem it my duty TO recommend that
section of the act of May z, 1878, be so
amended as to authorize the secretary of the
treasury to invest the sinking funds in the
first mortgage bonds of the companies, or such
bonds as have been issued to them by the
United States, or in other good and sufficient
securities and to convert the bonds now held
by the treasurer of the United States in said
sinking funds into money at the market rates
and reinvest the same in like securities.
"As many doubts have been expressed as to
the ability of the companies to meet their
Indebtedness at maturity, and as to the etli-
cheney of the provisions for q sinking fund,
deem it proper to suggest whether it may not
be practicable and highly desirable with the
consent of the companies, to change the form
of their indebtedness from running book
account into a settlement and actual delivery
of interest-bearing bonds for the amount
found to be due on a convenient day, say July
/, 1883, at which time One-half of the interest
will have been paid by the United States.
Let the ascertained amount be divided into
say one hundred semi-annual installments,
4. L., Il
one payable each six months, together with
interest upon the whole unpaid remainder of
the debt, the lien to remain AS il is.
with n view to devise the best possible Sc
curity for the advances made by the govern
ment have ventured to make the sugges-
tOns:
"First-That if the sinking fund is to be
continued, the discretion of the secretary of
the treasury should be enlarged as to the in
vGstments of the fund.
"SecOnd-That congress consider the prac-
tibility of committing the present book k-account
indebtedness for securities having the same
lien and Of fixed amount and payable at fixed
periods"
CONTROL OF RAILWAYS.
Upon the topic of railway rates, which is
treated at length, the report says:
THE adjustment of railway rates is one OF
the most difficult and delicate questions OF
modern times, and it is specially complicated
in the United States, where every trunk line
runs through several states, each independent
within its own jurisdiction and jealous of all
interference by the general government. The
enormous extent of this interest and the ra'
pidity of its growth, both in the increase ol
mileage and tonnage, demands that its rela
tions to the public shall be under some ju
dicious legal control. What it shall be, and
to what extent, are questions upon which thC
most experienced experts differ, and as tC
which there is much popular misapprehen'
sion"
1t is estimated by Mr.. Henry V. Poor tha
there are now in the United States not les
than 10l,Sl3 miles of railway, which, at tn,
low estimate of $4,000 per mile has cos
over $2,60O,O00,00O They have transported
within the last year $4,000, COO tons, of an es
timated value of $l2,OOO,0O0,O00 Their gros
receipts We're $l25,S25, ~: They paid TO