Los Angeles daily herald., 1888-02-11
MORTGAGE BONDS.
The Central Pacific Won't
Pay the Government.
50 THINKS MR.. J. c. sTUBBs
An Interview with that Gentleman
About the Matter-General
Railroad News.

The HERALD s representative called upon
M. ]. C. 6tubbs, General Traffic Manager Of
ne Southern Pacific Company. ct his special
oar the other evening. to have little talk
about trafRc m alters connected with the
company he represents. In answer to the
question a. TO what was new in the trans
continental business OF the company, Mr..
9tubbs said;
.Really. just at present there is literally
nothing new in that line. We have about
settled all matters connected with that de-
partnent for the present year, and unless
trouble arises from the TranscontinentAl
Association, 1 do not see how anything wor-
thy the name of news can arise"
'sWhas was the object in opening up your
new route for the shipmento Of freight to and
from Louisville, Cincinnati and Chicago via
the Sunset Routeg" was the next question
asked.
I'm the first place, the route is not new
one; we have been handling freight via
New Orleans for long time"
But" interrupted the HERALD's repre-
sentative, lit Is new to the officials In this
city" ..,..
for we have only lately perfected our ar
rangements in regard to it. 1t is good
line of railroad aud we intend to utilize it
~ much IS possible for the shipping of
through freights, TO relieve the great pres
sure upon the northern line, or the Cen
How viii il effect the traffic on the Gen.
tral Pacific, won't il detract much from Its
earnings?''
will have all 1t can do, even should the
Sunset route carry an enormous amount
How WIN the Government look upon the
soheme?''
at cannot affect the Government In the
slightest particular, for to tell the truth
do not think the Government stands the
slightest chance OF ever getting its money
anyhow. If it should fix the bonds of the
company up in the most favorable man
ner for settlement, and extend the time
for fifty or even o hundred years, l do not
think it would ever get paid. When that
road was built the cost of construction,
vas. ss every one knows four four Or iive tines me,
was treble, the cost Of iron was treble, and
the cost of ties was treble, to say nothing
Of the cost Of labor which was simply
enOrmOus.'
Nevertheless, speaking as 1 do, the
Government ought to be glad the two trans
continental lines the Southern and Central
Pacfnc system, are owned by one company,
for now they get something for the use of
their money, whereas had an independent
-are. the Government would have never even
received q cent in return for its money.
is now, If the Central Pacific rail
rosd does not pay five cents, the Southern
OF interest annually. II the Government
desires to ascertain the true state of affairs
connected with the company, let 1t pick
ave Of the greatest financiers OF the country
ions. Lot these gentlemen be free from
political espirations. 50 tina their
report will be o true statemen the
case. Ths ComrnimioRer Who lately pre-
ended to inyestigats tbs matter dld not
want to oinTsstlgats-they did no wan to
sss ~ tho ssxs MI, nsy were
ore. upon what AAsl foundation its hopes
Of being repaid are based, II It will send
ave good men to truthfully and fully look
dnto the matter. Irepeat again, do no,
think the Governments will ever get one
cent Of its money back again."
Ibid not Gov. Stanford, say the Gov.
ernment could take the Central Pacific If ii
-D5 you believe he said i'll do not think
he did. think that is like the newspaper
story. where 1t quoted Vanderbilt as saying
The frhlis be Damned IL is q Newspaper
'.But 10 return 70 the new route would
On certain classes of freight 1t woul
pay, but think 1t will only be q temporary
thiAg, you can see for yourself, that the
-csst OF hauling freight 100 miles out Of the
into consideration the difference In the
salue Of coal alone and the difference In the
amount consumed to haul q train via New
Orleaas and via Ogden. 1t 10 enormous to
rolling stock. But think / have said too
much already, 20 I'll have to shut up like
An oyster, won't say any more"
Mr.. 6tubbs is fne conversationalist and Z
os sss'sh hs s0y saSb. As se bs r
made y reputation for his executive abilities
that has becomel almost national. He ex-
pected to leave yesterday, for san. Fran cisco.
A plan OF settlement for the troubles OF
the Central Pacific, to VIII ch Mr.. Stubbs re-
ferred in the foregoing, is clipped from the
Raftedy Age, and 10 as follows:
''PLAN OF ssrTLBMRNT."
"Richard r. Stevens, chief accountant OF
the recent Pacific Railway Commission,
has written to United States Senator Rufus
Blodgett, of New Jersey, in reply to q re-
settlement of the claims Of the United
States against the Central Pacific Railway
Company. Mr.. Stevens takes ground in
favor Of asettlementtn line with the majority
ing out that an attempt Of the Government
TO wrest control from present owners would
meet with strenuous resistance In the
courts. Mr.. Stevens summarizes his plan OF
settlement as follows;
IL To create q sinking fund, with two
.trustees-0ne appointed by the President
and one by the railroad company.
.s2. Let that fund embrace all monies
now In the hands of the United States for
the future payment of the interest, together
with q semi-annual sum of $685., $40. 40, be-
ing the interest on the outstanding United
States loans.
49, The extending of the power of the
txustees and permitting them to invest In
the securities Of the railroad company.
~. The keeping inviolste the present
pre6t and .oss account as reserve fund"