Evening star. [volume] (Washington, D.C.) 1854-1972, 1888-02-24
THE PACIFIC RAILROADS.
Com mmissiOmerS LitlIer and Anderson
Before the House COmmitlee-A Les.
ter from Mr. Huntington.

In response TO invitation MeSsrs. Littler and
Anderson, OF the Pacific Railroad commission. ap-
peared before the House committee on Pacific
Railroads this morning Commissioner Pattison
was net present, but is expected to appear at an
early day. Before asking Mr.. Littler TO express
his views upon the Pacific Railroad question, the
chairman presented and had placed on file
LETTER FROM Mr.. HUNTINGTON.
Mr.. Huntington In his letter calls attention to
the fact that he was prevented by reason OF inter-
ruption from giving full answer at his last hear
ing to a question put as to what the Central
Pacific Railroad had done toward paying its debt
at maturity. Lest the committee might
answer he thinks 1t advisable (as that is a CON-
plete answer TO make II In writing. He says that
thirteen years letter TO the Secretary OF the
Treasury, he pointed out that the Government
transportation was diminishing very much below
the amounts the company had anticipated when
the contract was entered into. and although some
OF his company directors thought the Government
could not collect anything under the act except
the five per cent OF the net earnings, and one-naf
ernment yet he thought IL best 70 establish sink
Mr. huntington refers to the bills introduced In
1876 looking ~ the return TO the Government OF the
unsold land-grant in part payment OF the
debt and the diversion OF the earnings
from Government transportation for the ere
alton OF sinking fund lie says that
something OF this kind would have been
acceptable TO the companies, but no action was
taken. IL was I0rtunate, perhaps, 1Of tne Central
Pacific Co that its offer was not accepted as the
provisions would have proved a serious burden
now that the Government business and the net
earnings have both shrunk by the competition OF
THE CREATION OF THE CENTRAL PACIFIC SINKING
FUND.
Mr. Huntington then tells how the directors OF
the company In 1873 resolved TO create a sinking
fund In their own treasury to meet its debt. IL is
now apparent, he says that the money could not
h, YaaA N
Nevertheless q considerable fund would have &C =
cumulated by lsgs. More than half the entire debt
would have been paid, and the whole would have
been settled In the early part OF the nineteenth
century, after which the whole net earnings
would have gone 10 the stockholders 80 that
have made but little difference, says Mr. Hunt
ington- Continu uing. he saya that
THE PASSAGE or THE THURMAN ACT
followed, and 'this OF course, put an end to the
company's own voluntary efforts. as we could not
pay the money into the United States Treasury,
and also invest it elsewhere. Congress thus took
the matter into It's own hands and the result has
been 70 tmpound considerable sum In the United
states Treasury. which ought 70 have been earn:
ting or per cent, but which has virtually earned
nothing, as II is to-day doubtful whether as many
dollars will be gotten out OF the fund as has been
possible for the central Pacific co. 70 repay the
United states loan and the interest upon IL and at
the same time 10 take care OF It's first mortgage
bonds and Interest thereon within the short space
OF thirty years unless IL had control OF the trafnc
OF the territory IL traversed. When IL became
clear that other competing roads 70 the Pacific,
more literally aided than Tue frst road, were soon
TO be completed, u was evident that both the nrst
mortgage and the subordinate liens must be post
poned FOR a very long time. For reasons which
were no doubt satisfactory, the Government I'M
paired the earning capacity OF the road and there
by its security for this debt"
Mr. LITTLER ADDRESSES THE COMMITTEE
ME- Lttler then addressed the committee.
He said that when the commission had filed the
reports with the President Its duties were sub
stantially at an end but that II the members could
aid the committee In any way In reaching cor
rect determination OF the important question
before Il, they would most willingly contribute
their enorta Taking up the case Of the Union
Pacnc Railroad he called attention 20 the fact that
the bo1d-a1ded portion OF the road dd not embrace
the terminal facilities and property at Omaha,
Kansas City, or Denver which was worth million OF
dollarA The promoters Of the scheme must have
Government lien. and had concluded that the
valuable terminal properties should not be GOV.
cred BY the lien. The Government would noe
have much trouble In dealing with the Union Pa
CHIC. The country through which is ana its branch
lines ran was wonderfully fertile and capable Of
sustaining great vutem OF roadA Tho entire
country from Omaha % tho base q the Rocky
Aountains woulo produce very large tran1c and
would enable the company under an oconOmlCal
Management 70 payall M debt
Commisg1onoe Andersen was also heard By the
committee this Afternoon.
WE. Ochy went into : akooeang gallery in New
York yesterday, and calnng tur Q nne placed it
in nfnchag7uS1A