New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-01-05
rNEYoRK DAILY TRIBUNE THURSDAY saTwELvE

AY, JANUARY s, 1882. TIVE
30, 1885. the sam Of s20.4121 1893 d.
Tho interest accrung the Pacific Railroad bonds
II formidable Item In the account between Tbs com.
panIcs and tho United states Tho ptncral could
easily bc provided for n tho interest swes the amount
beyond tho earning powers OF tho bonded portion Oh
the roads.
TIE INDEBTEDNESS OF THE CENTRAL PACIFIC
TO THE UNITED sTATES-HOw REPAYABLE
We will first consider the question Of Indebtedness
from the standpoint necessarily assumed by the ac-
counting officers OF the Government without reference
to the c9u able rights Of tho Central Paeihc which
arc recognized BY Congress in the passage OF tho Ac
The prior lien upon this property, assuming the
interest proInpy paid In the next Twelve y senrs
selts to-day tho full value OF the aiaea roam
measured by the present cost OF labor anu ira,
With the present experience improvements OF Tools
and appliances required for construction, ~ couu ~ y,
built for This amount Therefore, nor consia w., a.
many and the Government caused by the Act Of March
B. 1887 would seem to be important Tor inc og OF
meeting this indebiedness unless tho Government
desires to have the property SURRENDERED 10 al INC
maturity of the bonds subject to the prior lien
The rompanes have performed for the Govern
ment much larger volume of business than was a,
required in the preceding the m mart p
of the transportation only tho same rare as atom
ia from one eighth to one-tenth Of the amount th5
Government paid for similar service prior TO such
"nt has axed an arbitrary rate which IS loss than
rates paid by other patrons OF the roao' anu '''
'nV We can better show tho equitable rights OF tn,
Central Pacific by stating an acsount, g,w Is7S the
day ON which the contract required the Pacific Rail
road be completed 1t would 9S ai1 er The com.
n. nS Of tbe road but tho following Is most favor
able TO the Government
The bonds issued to the Central Pacific COX sss 100
The So"as issued to the Western Pacific a7o go
amounted TO
1855, $50
as shown in the Public Deot statement Of 20 ,sosas
June 80. 1875,
s4oOoe,51e
peS OF s47 f9l US saved United states tate
between Nav TO- 1862 and July l. 1876 o,a7, .os2
say 40 rer cent -i,0''iv
Would leave du, to tho United States. for ~. ,,c
principal and interest, July !. 1876 s'e'oso'Aoo
II the Central Pacific proportion Of tho saving to
the United states prior to tho lst day OF ;u ~ claim
of tho Government, then tho annual interest to pc
hereafter shaoa aEnssa e Of
annually booked against II and the lesser sum would
have been annually cleared by tho Government, III,
mort alton and the payments under the thurman Bill
But tho company Is entitled to other deductions.
II the above account had been stated we
the balance due to it, for principal and interest on
July /. 1876 would be s13.5s3sS7.
ACCOUNT EQUllABLf oihiEN
There Is another branch of inquiry which Conefes'
has directed the Commissioners to pursue:
aWhat discount tho Pacific Railroad and Its several
branches were forced to make, In dsposng Oh the
bonds guaranteed by the Government, 10 OBTAIN .no
gold coin which the currency OF me n COUNTY
through which the creator part oi snu roa"' P"'''
Governor Stanford states the loss W u.s. 1ooo-a az
And So shows a. that the interest charged to the
COMPANY by The United States, on this
discount would amount at the maturity ,os,a,ao 40
Making a total loss to the company, II f., 1t
was required the principal ana In ooc OK "a
erest OF the Government bonds, OF sl9'eao' 10 "a
Dut the loss to the Central Pacific Is double INA.
stated by Governor stanford for the causes that
Induced the sale of the aid bonds forced th' company
oaec and as the latter did realize any greater net
price, tho loss is donble the amount stse1 this
information be obtained for practical ena an or
that intended TO reimburse the ten nsmaad Of the
G"vernment for the undue haste with which the road
q a% h $751; the wPcaa Be " as oows
uonas issued to the Central and Western an COG ooo
LOS pde suffered by discount. 7,12O,O7a
ro,,, 20, 7o5, COZ
Interest," Ts'e on hl: sum- per cent less credits
70 July !, 1875. o'oeo'.. :
sa0,454,s7o
D'd Of c+ni5.I saTsd to c Tned
between May 10, 1859. and July l. 1876 e,.o,, oss
"o snG ie ntee que I fnI 1s79, 74s33l7
BY this mode of stating the account .e annual IN
eres charge would be sos IN pse lead OF
entai,ed only sach burden could have been lifted
oy ne charge 70, p1os Of stating the
amount to July I, ls76 wIc'4eg the b:iance .! prn
a and due hs 50 Or aF as TIC
indebtedness growing out of the advance OF bonds Is
concerned; for If We take the larger sum- S1Sooo,4o0
And add the interest at per cent TO Janu- - 90, 400
L,
The balance due The United States, for prin-
eipa and interest On January l. 1885, sosA,o ,5a
would De -.-o,riD,o22
But at this date we show a saw.
ing TO the United States by
and Central roads of s139,3477ii
Less the amount Of saving
1869. and July 1. 1876, 47,763.17s
eoi5s1.5o3
Tho Central Pacinc's proportion, 40 per cent 40 ono
Add TO this tho result Of the frt her inquiry with
which the Commission is charged
If tho United states, since the Union and Central
Congress for tho construction Of the Pacific Railroads
has granted aid IN lands for building competing parallel
such roads, and TO what extent such competing lines
have IMPAIRED the earning capacity Of the Pacific
The answer OF Governor Stanford. supported by
the exhibit furnished by Mr. Stubs the General
now eight trans continental railroad lines addition
the Union and Central. each of which competes in
traffic between the Pacific and tho
territory east Of the Rocky Mountains
All OF these, except the Canadian Pacific,
arc in the United states territory and aided by
the grant OF lands may be In tho report of The
Commissioner OF Railroads for 1894 pages o26. o27.
Mr. stubbs estimates that the loss resulting to tho
Union and Central by the diversion Of trailc to the
aided roads was S37 l3235l o. OF which the Central
Iacifc's proportion IS 46 pcr cent. T17 O3O,SS1 A..
a further question, which Congress havo required
tho Commissioners TO answer. ~
II the United States have contracts with branch
roads. controlled by either Of the Pacific roads, for
carrying United States mails, and II what service
has been performed by them. and what money. II any.
has been paid for such service, and what remains
duo and unpaldl'
The evidence. given TO the Commissioner shows
that nnaided roads under the control Of the Central
Pacific have performed service for the United States
that the right OF the Central Pacific to collect for such
service from the United States has been adjudcated
by the final Judgment Of tho Supreme Court but that
the United States has neglected and refused to pay,
and that there IS due for such service about he