The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1888-01-11
THE PACIFIC RAILWAYS.
A Synopsis Of the Reports and Recon-
mendations of the Com
mission.
The Matter OF Prosecutions, Exten.
tension Of Time to the
Roads, Etc.
Washington special

The reports OF the Pacific Railway Commits
sion have been given out for publication
There are two reports TO the President one
signed by Commissioners Anderson and Litter
and the other by Commissioner Pattison. The
majority report consists OF 40 pages. Inc
larger part is n history OF the roads and OF the
Governments financial interest in them, To-
gether with copious references TO the testimony
taken and severe structures upon certain indi-
Gated peryersions of their trusts by Gould,
Sage, and other former directors OF the Union
Pacific, and by Stanford. Huntington, Crocker,
and Hopkins OF the Central Pacinc. The re-
port first takes up the Union Pacific system.
whose obligation to the Government Is shown
TO be 1901 1886. The total funded
debt &c, Geo OF 3a, the ia system Dec 81 1855 was
the United States), of which S33, 50, 00J was
prior to the United States statutory lien. To
secure the payment OF this sum and interest,
the commission offer bill providing for
mortgage upon which the Union Pacific Com
pany. for the first ten years. will pay the sum
of<sl, 776, 495 annually, this being per cent. on
the present worth of the debt to the Govern
nent, and hall of per cent of the outstanding
bonds; and, after that an annual payment of
ments OF percentage of net earnings Is de-
clared to be undesirable, as loading to endless
disputes and involving incessant litigation.
The history of the Union Pacific Railway, as
viii, it is claimed, show that its assets have
been in former years largely misapplied and
that its financial ability TO meet its Obligations
has been largely impaired by the action of men
who held iduciary relations tO~the corporation.
The commission then refers to the decision OF
the United States Supreme Court that neither
the Cove rnment nor Congress can institute pro-
ceedngs 10 compel restitution by any of these
officers, which decision is considered great
misfortune. In consequence OF this decision
the Commission has inserted in the.proposed
bill section requiring the Union Pacific Of
fcers, in accepting the adjustment offered. Ito
son e.s has or exist Of a aS
trustee, director or officer of the
company. or any cause whatsoever, the COM
pany shall on application of the Department
of Justice of the United States, bring any suit
or take any proceedings that shall be directed
by that department., ana prosecute such suit
or proceedings, under its direction. to final con-
The total debt to the Government Of the Gen.
tral Pacinc Company is Tl, 1884 and the
Commission propose a mortgage under which
the company shall pay the Government
s1,726,5Sj annually for ten years, and after that
the sum of sl97a.2i0 annually until the debt is
paid. The application of the remedy to the
Central Pacific Railway Company is difficult
task 1t is hardly to be expected that any
act resembling the act submitted in the
case of the Union Pacific will be accepted
by the Central Pacific. On the other hand,
in the event of refusal to accept.
the application of the entire net earnings
resulting from that portion of the road ia con-
sideration OF which the bonds were issued is
insufficient to meet the accruing interest paid
and to be paid to the United States. 1t is also
insufficient to accomplish q repayment of the
present worth of the obligation. even ut the
duced rate of per cent per annum, for the rea-
son that the entire net earnings will not amount
to per cent of the present value of tho debt.
The commission believe that the enforcement
OF the government lien would result as a gift of
the whole amount due the United States.
The commission propose that the Central
Branch of the Union Pacific, whose obligation
to the Government is 49, 2i9,GSI, execute mort.
gage, under which sll37do shall be paid
annually for ten years, aud Si3J 200 annually
thereafter until the whole debt is paid
The obligation TO the Tn ted States OF the
Sioux City and Pacific Road is s;l3s4,057.
mortgage is proposed under which the company
shall pay annually for ten years Sll62l0, and
S132, 500 annually thereafter until tho debt IS
paid.
The bills submitted by the commission differ
from any pending legisation-frst in the
methods Of computing present value of indebt-
edness second. they direct the discount 10 be
computed at per cent. compounded; third.
they add a mortgage to the statutory lien
fourth. they provide for a simpler bond: fifth,
they give wide range in the investment of the
sinking fund; sixth. they forbid the declaring
of dividends except from the earnings of the
fiscal year, and these only after the require
ments of the Government have been met;
seventh, they require the companies TO insti-
tute suits against officers for misrepresentation
OF the company's funds eighth, they amend the
Thurman act so as TO apply to the existing con-
diton of each company.
In the second part of the report the commits
sion shows the amount Of bonds and the guam
tity of land received by the Pacific roads to be
as follows:
Union Pacific .s27, 23f 512
Kansas Paciiic ;n...;:.......... 6'S04,oo0
Sentral Brnnch chi0n racine ........ !'oOo'O00
Sioux City and Pacific. ................ 1,62S,320
Central Pacific. 1855 100
Western Pacific. OBSERVATION-DISCLOSURES. 1,9IO,57O
Total. Observation-Disclosures. 6i,623,5l2
LANDS.
Acres. per acre Amount.