The Indianapolis sentinel. [volume] (Indianapolis, Ind.) 1880-1904, 1885-02-13
THE RAILWAYS.
The Pacific Railroads and the Govern
ment-Pools a Fsilure-Other Items
Relative to Railroads and
Employees.

Frank HendIy, agent at this point for the
Atchinson, Topeka and sante Fe, has just
returned from q Western trip
The l., B. and w. people have Just Issued
some very choice advertising matter concern
ing the Worlds Fair. Local Agent Butler
states that the J.. B and W is securing
large amount OF Nav Orleans travel and that
they are ticketing peopls by the way of the
Illinois Central.
There is decided improvement in frsight
traffic, the coal and live stock movement be-
ing very heavy The Vsnjslis anu l. and
ST. L. Roads are bringing a considerable
amount of coal from the West, while the Q
II. ana ID. and l., b. an0 w. are hauling
large quantities Of grain to Toledo and other
lake points. A heavy movement OF house
hold goods and general merchandise is also
reported.
An item appeared in one of the Eastern
papers OF recent date 20 the effect that the
Indianapolis outside offices were to be closed
again within few weeks. There is no
truth whsteYer in this statement. The man
asements OF the various Indianapolis Roads
hsve 10 more idea Of closing up their local
Offices than they have disseminating the
running OF trains A loca, agent said yes
terCsY that they we're securing double the
cts we're on sale st the outside Offices.
Even railroad men must have the CO vic
ticn forced upon them that the railroad
pools which they have spent 50 much time
IL piecing together are failures. The notice
served by the Grand Trunk CT its intention
TO withdraw from the East bound Pool from
Chicago is only the latest OF innumerable
evidences OF this truth. It is now reported
rom New York that Commissioner Fink,
sick of his inability to hold the railroads un
der his charge to their agreements, is about
to give up in disgust The main items of
railroad news continue 10 be the bursting Of
pools
THE PACIFIC RAILROADS.
By The terms of the original contract the
principal of the bonds advanced by the Gov
eminent to the Pacific railroads. with the
interest on them from date of issue, was to
be paid all al once, when the tonds mature,
near the close of the present century, the
only payments meanwhile being the charges
for government transportation and per
cent Of the net earnings. The Thurman
bill compelled the companies to make some
additional provision IN advance for the pay
ment of what would become an immense
debt, and now they pay into sinking fund
for that purpose % per cent. of the surplus
Of thsir net earnings over interest charges.
bill Introduce into the Senate last
last week provides to substitute for this
plan by which the companies will pay their
debt I'm 100 half-yesrly instsllments This
will leDgthen by more than fOrty-fye years
the time before the last of the debt will be
due; but insialiments oil will be actually
paid Off all the time; while the payments now
made go into a sinking fund; and the
bill provides also that all the branches built.
or y hiCh the Government mas d lien now,
shall be mOrtgsged for the new Government
redemption bonds as they are styled, aud
the two principal Pacific Railroads have =
good deal OF such property, though tue
bonds outstanding which are q prior len
upon il, probably do not leave much margin,
ia the Gaze Of many OF the branches, to
strengthen the Government lien. The debt,
SIS it will exist at the time the bonds mstOre,
is 10 bs capitalized AZ its value April l, next,
on the basis % per cent interest TIE
amount of the debt OF each company SO as
certain ed is 10 be represented by 120 bonds,
one Of which will be payable every six
months, with per cent interest. The terms
OF the law indicate, however, that no inter
est is lsid until the bond natures which Is
sn enormous advantage to the debtor, much
Ike that OF the original bonds bat not SO
striking. because part of the principal
and the accrued interest on that part will be
payable yearly