Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1885-10-15

The San Francisco Post OF last evening
contained the following
A telegram from London has been pub
lished in this city, stating that the Oregon
and California Railroad has been sold to
the Central Pacific. 1t seems so strange
that four hundred miles of road could be
sold in that otf-hand manner without any,
one here knowing about IT, and especially
| IS Senator Stanford had declared a few
days ago that the California aud Oregon
would not be completed unless the land
grant was confirmed, that reporter of the
| Po% was sent to the railroad Office to make
inquiries. He was re eferred for particulars
| by the executive department 20 Colonel
| Greed Raymond, the active head OF the
Central Pacific law department.
The Central Pacific Railroad or anv OF
its corporate branches has not purchased
the Oregon and California road said
Colonel Raymond, most emphatically,
| 'and 1t IS not likely TO do so until the land
grant is confirmed"
But the telegram from London saws the
| sale has been made, and part of the agree
| ment Is that the California and Oregon is
| to be completed to Ashland at once"
1t Goes not matter what the telegram
says. replied Colonel Raymond. THE
road has not been sold to US. The terms of
the contract are simply proposition OF the
! Oregon and California bondholders to this
| company, but it was not accepted. Per-
| haps that is how the false telegram was
sent-by mistalling an offer for pur-
chase"
| How does the matter really stand?"
| The Oregon and California road is IN
| difficulties. 1t does not pay the interest on
the bonds, and it has got to be sold Nat
urally the bondholders, who have no secu-
I laKr~ Sc 1
| the best terms, for, should the Oregon land
grant be forfeited they would have Virtually
no security. But, on the other hand, why
should we buy protitless road, when the
| land grant, which is its sole valuable at
| tachment is in jeopardy, and not only buy,
| but saddle ourselves with an agreement TO
complete the California and Oregon at a
| cost OF $4,000, ,00G whether its land grant is
confirmed or not? The Central Pacific
would like to buy the Oregon and Califor-
MIA on terms that would make such i pur-
| chase have IA reasonable hope of profits ::
| but even if we determined to buy at anv
price, there are no funds available. West
ern railroad bonds, without land grant.
cannot be sold at any price now, and this
company is very short of money. II could
not raise the money without the land grant,
| if it wanted to do So
Is not the road likely to prove very
profitable?"
No; not for years, at least. There are
already more transcontinental roads than
| there is profitable business for, and the
| local business is not enough TO paw operat-
ing expenses. The fact that the Oregon
| and California can't pay its interest should
show that there is no bonanza in the road.
Still, if Congress will leave us the grant we
would Ike TO go on and complete our road
and buy the Oregon road. This could be
done by selling the bonds, which, with the
land grant rs security, can be remarketed.
The Act of Congress provides that if either
company fails to complete to the State line
the other company may make the c0nnec-
ton, with the consent Of the State and re-
| ceive the land which that part Of the road
is entitled to. The road IS military neces-
sity, and a necessity TO the prosperity of
San Francisco, but we can't build it with
out money, and money cannot be got with
out the land grant