Wessington Springs herald. (Wessington Springs, Aurora County, Dakota [S.D.]) 1883-1891, 1888-01-13
|ur PACIFIC RAILWAYS.
,.,,, onsis of the Reports and Recon-.
" rendations Of the Com
mission.
NATTER of Prosecutions, Exten.
tension Of Time to the
Roads, Etc.
-,.,,sh;neton special. I

Roads, Etc.
Washington special.
morris of the Pacific Railway Commits
lse haye been given out Tor publication
here, NV NV commissioners Anderson and l.ittler
eiis si, y" oather by Commissioner Pattison. The
ID ';o ,nt report consists Of 100 pages. The
raer part is a history OF tne noaas ana OF the
ose ven nth copious references to the testimony
ethu' and severe structures upon certain indi-
k ts p oa Of their trusts BY Gould,
ase e," an md nv Stanford, Huntington, Crocker.
a,' uonkins Of the Central Pacific. The re.
1yt n trst takes up the Union Pacific system.
nose obligation to the government Is shown
J.. be .; tn the > system. Dec. 81, 1856. was
en- ,aio lg7. % exclusive OF its obligation to
tinted statesl. OF which ss3,53 900 was
e 60 the United States statutory lien. To
pm- " the payment Of this sum and interest,
c"l e,,nn,isson offer a bill providing for u
tr. ss..e upon which the Union Pacific Com
any fol the iirst ten .S Yeas a; VII pay the sum
si,lrossnt worth of the debt to the Govern
s 40 and half of per cent. OF the outstanding
nn,,. and after That, an annual payment OF
SnSG 80. The system requiring annual pay
a,ts oi a percentage of net earnings is de-
a[aj 10 be undesirable, as lending to endless
"nr.es and involving ncessnnt litigation.
rs,, Ifa OF the union racine Railway III
,yaloned in the second part OF the report,
y If il cnimed, show that it's assets have
'aer in former years larg lily misapplicd. and
pat lis financial ability to meet its obligations
aa heen largely impaired by the action Of men
M Maid tduciarv relations to the corporation"
MA Commission then refers to the decision of
Ph" United states supreme Court that neither
khe Government nor congress can institute pro-
n,Tccrs, which decision is considered Il great
nisfortune In consequence of this decision
th@ Commission has inserted in the proposed
bjll a section requiring the Union Pacific OF
snars in accepting the adjustment offered. ITO
consent thut us to all causes of ac-
t H,i'' existing or to exist against any
trustee, director or officer OF the
,uy shall on application of the Department
If Iys1ice Of the United States bring any suit
NJ take any proceedings that shall be directed
or proceedings, under its direction to final con-
The tots debt to the Government of the Cen
trsl Pacf, Company is 81 ,792.524, and the
commission propose o mortgage under which
the company shall pay the Government
ST. 7gf 5Sj annually for ten years, and after that
me sum OF Sl,97a.2D annually until the debt is
uaid Tho application of the remedy to the
central Pacific Railway Company is a difficult
task 1t is hardly to be expected that any
net resembling the act submitted in the
ease of the Union Pacific will be accepted
,y the Central Pacific. On the other hand,
N the event of u refusal to accept
tLe application of the entire net earnings
resulting rom that portion Of the road in con
'ieration 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 repayment of the
present worth Of the obligation, oven at the re-
luced rate of per cent per nnnum. for the rea-
son that the entire net earnings will not amount
70 :; per cent of tho present value Of the debt
| Tic coun:s sion believe that the enforcement
| Of the government lien would result as gift OF
.l,,Ia Mt n ha Initial
The commission propose that the Central
Branch of the Union Pacific whose obligation
To the Government is s3,2i9,6si, execute q mort.
gage under which Sll3,7aO shall be paid
annually for ten years, and si3O,OoO annually
thereafter until the whole debt is paid.
Tho obligation to the United States Of the
Sioux City and Pacific Road is S3,3s4, 05;. A
mortgage is proposed under which tho company
shall pay annually for ten years $ll62;0, and
Sl'a,5O0 annually thereafter until the debt Is
paid.
from any pending legis]ation-frst. in the
methods OF computing present value of indebt-
elnesS second. they direct the discount to be
computed ut per cent. compounded; third,
they add mortgage to the statutory lien
fourth, they provide for O simpler bond: fifth,
they give wide range in the Investment OF tho
sinking fund; sixth. they forbid the declaring
u dividends except from tho earnings of the
fiscal year. and these only after tho require
ole.ts of the Government have been met
seventh they require the companies to insti-
ute suits against officers for nisnpnropriation
Of the company's funds eighth, they amend the
Thurman act so q; to apply to the existing con-
iitlon of each company
In tae second part of the report the commits
sion shows the amount of bonds and the uuan-
;ty Of land received by tic Pncilc roads to be
Is follows
mon Pneiiic ................. ST 236 SO
nansns Pncific. Observation-Disclosures. 6,3O4 200
central Branch Union Pacific. 100000
Sioux CITY and Pacific G2S 31C
Central Pacific. ACKNOWLEDGEMENTS 5 1885, 70,
Western iachc.. Observation-Disclosures. l,970.57C
Total NEUTRALITY-SUSPICIOUS.. SCI 6235
Acres. per acre, Amount
Gnlon Pacific. II .3O9,s44 SIPS Sl4, 1871 30:
,s."naaS racine ...... 6,tOo,OOu 125 t,50p,uUt
Nontfhl Dranch U. Z. 1850 l. 25 27S, 20.
oip'iS CITY e. Pacific. 1886 1875 54l7C
tentral Pacific. s,0Oo.OO0 1.25 1o,O00,Ooy
"e'tefh ihclhc...... 453,TA 1.25 567,2i:
Total. .2i6ao,554 So, 53G,9ls
Total bonds and lands SGT 16l Az
The report then contrasts the management OF
VI, mon Pacific since 1854 with the methods
u Mf. Gould, which are discussed in a manner
not 70 the iuttsr's credit The Huntington man
cement OF the Central Pacific is also criticised
. 'vSelely AS al evidence of the Huntington
SlYen at si2o,s7252a, when the commission
t 90, it was 1901, s3l, leaving u profit of
.1,oloJ1, which was paid to Stanford, Hun
r,nseol, hopkins and Croker, being voted to
.ntll by their own votes. Other similar trans
aIt!o!s are given. The commission finds,
nat!e there is no proof of actual bribery, that
honey and passes have been used by officials
legislation.
=, AS 10 tho Sioux City and Pacific Company,
.ne commission finds tnat none Of the require
aeltS SO. OF the act granting the subsidy have
zen Kept, and that the action Of the directors
., -, "iHldlng among themselves the first mort
Sase bonds of the road was q wanton violation
II the grant
me minority report of Commissioner Patti
~. rs radically different from that of his usso-
,ates IN respect to his recommendation for the
. lion OF Congress. His report occupies sixty
snses and begins with u most sweeping and
"a 't'H nest denunciution and Arrangement
y. tofhcr officers of the Union Pacific
a.au inc present management of the Central
usinc' whose nalieasance, diversion OF
Moheys belonging to tho stockholders of the
i"Al>' and deliberate ana fraudulent i'm.
1u "a. Of the Governments liens are pointed
ou. with great particularly and elouuence He