Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1888-01-05

the original contract, they COMMENDED
that their roads were not com pleted till
1869 and refused to make any payments
to the government though one of them,
the Central Pacific had been declaring
dividends in the meantime. They resisted
the claims and demands of the govern
ment at every point, and resorted to
every device their ingenuity could invent
in their efforts to
E WADE THE PLAIN REQUIREMENTS OF LAW.
In the transportation Of troops and
supplies for the government they violated
the contract obligation to charge reason
able rates, by charging more than they
charged to private shippers for the same
kind of service. The reports of the
Union Pacific show that the average
rates paid by the government to that
corporation were higher than those re-
eeiVed by that company from other
sources. The same is more or less true
of other bond aided companies. The
balance sheet of the Central Pacific for
1886, should have shown q deficit of
over $14,000,00O in the profit and
loss account, but by emitting
from the debit side the accumulated in
terest which the government had advanc-
cd amounting to $31, 1858, 1880, and by
making up its lands in the assets column
to $23, 100000. when the actual value was
So 100000, as appears from the testi
mony of the company's land agent, the
company made q showing of an apparent
surplus of over S2S,000,0000. Had the
Pacific railroads been built and man
aged
UPON AN HONEST METHOD
had the government loan been properly
applied, these companies, regarded as
whole, could have declared dividend at
rate of six per cent per annum for Is
years from the date OF actual completion
to the present time upon ell the
monies they would have been required
to pay in to complete and equip the
roads. They could have repaid every
cent of principal AID interest advanced
by the government to date, and could
have redaced their charges to shippers to
the extent of $146,475,97O, or more than
$8,OOO,OO0 per year. But they chose
dishonest methods. At the outset
they divided $172, 347,115 of fictitious
capital, and they taxed the shippers to
100000 year, to pay for the imitation of
the capital of these companies, ard
for the vicious practices that
Because of the vicious methods
actually pursued by the bond-aided
companies, the government has been de-
frauded of the bulk of its advances, ship
pers have been taxed to the extent of
over $265, 100000, and liabilities to the
amount of $389,518, 264 have been heaped
upon the properties.
THE ASSETS OF THE COMPANIES
to-day are insufficient to pay the present
worth of the debt, and thsy will not be
able to pay it in 1895 except by assessing
the stockholders, or by the recovery of
large sums of which the COM
panies were defrauded. Objec-
tions to the extension of time
of the payment of the debt of the Union
Pacific and of the other com panies are
many and insuperable. The majority of
the commission recommend an extension
of time for the payment of the debts of
all the companies for fifty years on
certain terms. The testimony shows that
except the Union Pacific none of these
companies have agreed to- or will or can
accept the terms recommended by the
majority. The fact is that
as to all the companies excep t
the Union Pacific their bankruptcy is so
complete and irretrievable that no part
of their Indebtedness can ever be recov-
cred by the government except by imme
date compulsory legal process. Bonds
of the Union Pacific, provided for in the
majority report, would sell for about
fifty cents on the dollar, and the bonds
of other companies would not be negotia-
BILE.