The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1888-01-01

,nv efficient remedy The wrong VAS
lone to the United States as the credl- !
tor of the com pany. The court does not
seem to have considered that the load
made bv the government to the COM
pany was. in large measure, MAZE on
the compaaty's promise " nay = SO disun-.l
guished fro !. the security taken by the
statut tory lien, vsnd that the valne OF
thi-F promise to pay was substantially
destroyed by the act complained o1.
The extent of which the court faiied TO /
recognize. the enormously different r.
suit to the government. arising
from the financially weak state
of the corporation can be judged |
from the remark made by the court |
at page 6l5. After referring to the rlgn
TO appropriate .one-half OF the Lransp,, r !
uation service and per cent. OF the nei
earnings the court Bays: 1t is not WHOLLY
unreasonable to suggest tnaj IN"
amount which the company may b@
compelled to pay annually under th..se
two pr"visions will be sufficient h
sinking funu to pay the rntlre DEBT.
princi pal and interest, befor eli fails due
Since these words We're writtvi thr
par cent bias been increased 10 70 ~
cent, the haif transpUrJa 10 the
whole transportation, al sui DIT ilSi'-
progress has been made In making pro
vision for this large abl CATION, we are
satisfied that the people 'ot me U ,i'cu
States, and their representatives an
Congress, have BEEN LARGELY controlleo
n their opposition to measures hereto
fore presented for tie adjustment u
these matters, b. cause OF natural un-
Willingness 10 permit these wrongs 10
90 unredressed and without any effort
whatever to properly prosecute aud
punish the offenders.
We have, therefore, inserted in the
bill which we recommend. a section re-
oui ing the Union Pacific Railway
ompany, in accepting the terms of the
adjustment offered to consent that as
to ali causes of action existing or 10
exist against any trustee. director, or
| officers of the Company. for any cause
whatsoever, the company shall, ON the
application of the Department OF
Justice of the United States bring any
suit or take anv pfoceedings that shall
be directed by that department.. and
prosecute such suit Or proceedings, I'M
der its direction, to fnal consumma-
ton"
| The Central Pacific Railroad is next
taken up, its subsidized portion being
| from a point i've miles west OF Oghen,
| Utah, to Sacramento City, California,
a distance of 737 so miles, and from
Sacramento City TO San Sose (formerl,
known as the Western Pacihc) at the
south END of the Bay of San francisco.
6 distance of 1876 miles. The total
amount of subsidy Was S27 $50 6oO. Inc
additions to the company by consohoa,
lions and extensions is explained, and
1 - ~ 10 ntopoH of l XII w
miles. of which SCOTT are subsidized,
and 466 So unsu bsidzed, the subsidized
portion having no direct communlcatlon
with San Francisco. Prior to 1885 large
number of local branch roads wer'
operated by the Central Pacific under
leases, these roads running through the
most productive and populous parts o.
the state and adding largely to the In
come of the main line.
s In addition to these branches com
plese system of railway extending iron
, Goschen. Gala, 10 Needles, A1zona
thence through Arizona and New Mex
, leo and through part Of Texas to /
Paso, "a Houston. and thence me,
prominently connected with tn
: Central Pacific, secured connect1o
@ with the east from Nav Orleans .
= water. This system, Known rs tn
q Southern Pacific system, Was o'erate
y by the Central Pacific prior to 1885. bu
y then a change was made, the systeI
@ being divided into two parts, "ne IL
: Guiding the Central Pacific, and lease
e lines north of Goschen, and. the otht
- the Southern Pacific and leased lint
south of Goschen, and both system
4 were leased to Kentucky corporate
~ known as the Southern Pact
~ company. The latter company q
81 sumtd payment of all the Central Z
- clfic obligations by way of interest, al
also of the government requirement
NJ ana agreed to pay an annual rent
g fixed at minimum of $l,2O0,NO.
= add ton to this sum lhr Southe
Pacific company agree to make the el
N tire amount of it's payments equal
e the actual net earnings of the roa
i such payments not to exceed W 400 "
N With the exception Of about 100 null
al from the base OF the Sierra Neva
n mountains to Sacramento the count
%. is much of it barren wilderness. L
! country traversed by the WeSte
= Pacific is we'll adoptei to secure II
m and increasing revenue. The evlden
pdoes not show in the subsidized lint
M capacity for net earning to exec
or S0 .UUU UUU per duuuh. IhO oyo'Cih
~ valued by Colonel Morgan at ITO OO0,0
Wv Which the commission thinks is e
,bt cessive. The statutory lien given to t
NJ United States is limited to that port
[ar of the road between Ogden and 5
N Josee.nd has no applications to a
no bra ches or leased lines. Tn bond
II deot Is figured at $633 90 aud
:, government hen at $27 sos $50, maxi
"a a total funded debt of $50 242 $50 I
80 sides the road itself, there are 81 570'
nd land grant bonds, and to some extt
= te the fifty year bonds are lien on
he land grant, to bear this burden. Ast
ct Indebtedness is greater than the cost
to reproducing the roads, the commissi
he reach the conclusion that a pres'
: mortgage given by the Central Pac
. ~ railroad { EN- braeing th4tentire 1885,
o as miles of the railroad las now const
Is; no dated, would therefore give out Iii
NE additional security to- the pres
rar statutory lien. 1t has, however. as
nh. the presentcase of the Union Paci
az the advantage of gathering toget
H. ~ and placing within the control of
uoI creditor complete mortgage of the
or tire railroad, including the Californi
the Oregon, the San Joaquin Valley.
! tol San Francisco, Oakland and Alam
IL branches, andsthe terminal facili l.