Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1888-02-25
THE CENTRAL
WHAT II HAS DONE TOWARD PAYING ITS
INDEBTEDNESS.
Hr. huntington Rslsat, and Sends Later b u
investigating Counl!iss n,las Answer
10 ths Question, Pn-
pounded.

WASHINGTON, February N-In re-
sponse to invitation, Nessra Littler and
Anderson, Of the Pacific Railroad Commis-
sion, appeaaed before the House Commit.
tee on Pacific Railroads this morning.
Commissioner Pattison was not pres-
ent, but il expected 10 appear st an early
day.
Before asking Mr.. Littlsr 70 express bis
views upon the Pacific Railroad question,
the chairman presented and bad placed On
die letter from Ar. Hastixgtea.
Mr.. Huntington, in his lstsss, calls at.
tention TO the fact that hs va prevented,
by reasons Of intcrruptious, from giving
full answer Ia his last bearing 10 ques-
pot as TO what the Central PAc6c railroad
had don towards paying IL dsbtSeat
maturity. Lest the committee might
suppose that be did wish to make an
swer, abe thinks IL advisable (as there 10
o complete answef) 70 make IL In writing
He says that thirteen years ago,
in Q letter to the Secretary Of tho
Treasury, he pointed out that the Gov.
ernment transportation was diminishing
very much below the amounts the COM
pany had anticipated when tho contract
was entered into, and although some Of
his 90 directors thought tho Government
could not collect anything under the act
except the five per cent Of the net earnings
and one-half Of the service that the com
pany did for the Government yet he
thought ID best 10 establish sinking fund.
Mr.. Huntingdon refsre 70 the bills intro
duced In 1876, looking 10 The return 10 the
Government Of the unsold laud grant In
part payment Of the debt and the diversion
OF the earnings from the Government trans.
portation for the. creation Of . sinking
fund. He says that something Of this
kind would have been acceptable 10 the
companies, but no action was taken. IL
was fortunate, perhaps, for the Central
Pacific Company that its offer Was not &C.
cspted, ss the provisions would have prov
ed serious burden now that the Govern.
ment business and the net earnings have
both shrunk by the competition Of other
through lines.
Mr.. Huntington then tells how the direc-
tors Of the company, In 1878, received to
create sinking fund in their own treasury
to meet its debt. It is now apparent, he
says, that the money could not be made 70
earn eight per cent, "a wAs anticipated.
Nevertheless, . considerable fund would
have accumulated by 1893. More than
half tho entire debt would haxs been paid,
and the whole would have been settled In
the early part Of the twentieth century,
after which tho whole net earnings would
have gone 10 tho stockholders. 80 that
whether my assertion was right or not
would have. made but little difference" l"
says Mr.. Huntington.
Continuing he says that the passage Of
the Thurman Act followed, and this. Of
course, put an end 10 the company's own
voluntary efforts, - We could not pay The
money into the United States Treasury and
also invest Il elsewhere. Congress thus
took the matter into its own hands and tho
result has been to iupound Q considerable
sum in the United States Treasury which
ought to have been earning Ave or six per
cent. but which has virtually earned moth.
ing--as II is to-day doubtful whether ~
many dollars will be gotten ont Of the
fund As has been paid into II by the com
pany."
Finally II was not possible for the Cen.
trail Pacific Company TO repay tho United
States loan and the interest upon it, and
at the same time TO take care Of IL hrst
mortgage bonds and interest thereon. with
in thirty years-unless IL had control Of
the trnffic Of the territory II traversed.
When IL became clear that other compet-
ing roads 70 the Pacific more libsrslly aid.
cd than the first road were soon 10 be com.
pleted, IL WAS evident that both the 6rst
mortgage aud the subordinate liens mnst
be postponed for very long time. For
reasons which were no doubt Satisfactory
the Government impsired the earning
capacity Of the road, and thereby its
security for the debt. This was matter
over which the Government had control
and in equity II ought not now 70 seek "a
make the impairment good st The sxpepss
Of the party injured by Il, viz: the com