, 1885-01-10

072, 1858, a sinking fund in the hands Of
the trustees $32, 600, and bills and ac-
counts receivable 81, 9l3,4l9, making a
net debt of SO. 977, 900. By the operation
of the policies inaugurated by the new adj
ministration this net was reduced up to
September 30, 81, 1853, l6s. or to 5,l37,-
0C0. This is the result over which the
administration is disposed to congratulate
itself. in view Of the commercial condi-
tons and complications which the change
of administration is calculated during its
incipiency at least, to develop, if not mag
Nifty. The rate Of decrease Of this debt
notwithstanding was about 5000, 900, dur
ing each of the months of October and
November. Its reduction was a consum-
nation to which the new management
specifically and s%trenuously addressed
itself.
Advances, June 30, 1884, to other roads
in process of completion and on the con
struction account, which advances to the
extent they were then land some still are)
unadjusted. were and are payable in the
bonds and stocks of such roads, amount
70 81, 1897, 095. The Union Pacific holds a
majority of the stock and bonds of nearly
all its branch lines. The completion Of
the Oregon Short Line is noticed and the
belief expressed hat it will soon be not
only self sustaining, but a source ofincome
to the Union Pacific. The company re-
spectfully protests that the investment of
such sinking fund f5r the benefit Of the
government Cor creditJs) as has been ac-
cumulated is unjust to it. The fund is not
50 invested as to earn the full measure of
its ability if properly invested. 1t tends,
therefore, in no practical degree to relieve
the debt of the staggering proportions it
will have assumed when the time arrives
for its payment 1.-THE present policy ofper
centages upon the net earnings and the
investment of the same in asinking fund is
to be pursued, experience having dictated
that some vital essentials are lacking to
the successful working of the policy, some
additional measures must be adopted.
The successful working of the policy pre-
supposes two things: The government
securing the full and entire amount of its
proportion of the net earnings and the
investment of hat amount so as to accu-
mulate with reasonable rapidity. But if
the government is to be reimbursed out of
the net earnings, the government di-
rectors venture the suggestion that ia fact
no department of the government will
ever, know for it is practically impossible
to definitely arrive at what those earnings
really are or may be until some competent
commission or government director is en-
powered by law to supervise continually
and constantly the actual concerns and
operations Of the company. A suggestion
that seems from a careful and intelligent
survey of the matter a most feasible plan,
is one hat settles or would settle most
speedily and permanently this whole
question and obviate all difficulties which
surround it. Il is that instead of the
present requirement Of the government of
a certain percentage Of the net earnings, a
fixed sum be agreed upon which the
company would be compelled to pay
at stated intervals toward the in
terest and principal of its debt
to the government. Inixing such stated
sum the law making the power can resolve
upon a just and intelligent figure, with or
without consultation with the company,
keeping in view the financial condition
and abilities Of the company and having
a due regard to the interest of commune
ties and of commerce that will be affected.
The government is now face to face with
the proposition that il shall deal justly
with this corporation as it now finds it,
and at the same time, justly with public
and commercial interests.
The directors recommend the establish
ment of a National Railroad Commission.
In conclusion the directors say: "The
very happy fact that the stock of the
company is owned now mainly by in
vestors instead Of spectators has had a
great weight with the government direc-
tors. 1t has conclusively determined in
their minds the fact that perhaps above
all things that are to be avoided
in legislation is the contingency
of such terms being imposed upon
the company as to render its stock
practically permanently non-dividend pay
ing. thus giving it an uncertain and purely
speculative value. The result of this
would be to utterly DISCOURAGE all bona
fde investors and holders to force the en-
tire volume of stock into Wall street and
finally into the hands of pure spectators
to whom control is better than owner
ship because cheaper and affording all
necessary means to wreck and prey upon
The resources Of the corporation. 1t is
difficult to conceive to what unfortunate
end the road would come in such an event
1t would be %ruinous to the road, it would
be the destruction Of the communities
upon it. If the government would TAKE
the securities of the branch lines. or re
quire that they be deposited as security
additional to that it now has, and fix upor
the stated amount to be paid at stated
periods, such as would in time liquidat'
the debt, but which would not compel the
company to impose unjust terms upon it
patrons, and would justify the govern
ment in prohibiting it from doing 50, thi
controversy might be regarded as VIRTUALLY
settled.
Chinese Children in Schools.
SAN Francesca, January 9.-SuperioI