Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-06-01

Grated by the company.
The total par value of the stock of the
company is $3.50, 4l6 597. The liabilities
and capital stock of the company are
1871, 10Y ,2S1 So, and the assets 1895. 756. :
4O3 10, leaving surplus of SD 649, l21 "a
This does not include the unsold lands
granted by the Government to the Southern
Pacific Company in California. The profits
for the year were So, Sl51 S2 "A. The gross
earnings of the Pacific system. except the
Coast division, were $50, 03l, 304 06, and the
operating expenses were $21,55S, JAG Is,
leaving balance of S11, 473, l57 81, or of
every 800 received, sos ~, were paid for
operating the roads. In the Coast division
the gross earnings were s., 0S5937 GA. and
operating expenses were 81 ,l3S, 1913 10 the
balance being S947 ,53S 80.
The report says: The relations between
this company and the United States are
chiefly through its operation of the lines
of the Central Pacific Railroad Company
1t may here be noted that payments are
still withheld by the Government for trans
portation services on non aided lines, not
withstanding the published reports OF the
United States Commissioner of Railroads,
the United States Pacific Railway Commits
sion, the Court of Claims and the Supreme
Court declare that the charges are due the
companies and should be paid. There re-
manned due to the Central Pacific Railroad
Company on December 81, 1888, from the
United States, for transportation on non
aided lines prior to lease to the Southern
Pacific Company, 81 ,06S ,l6l 81. There is
also due to the Southern Pacific Company
for transportation since the commencement
OF the lease 81 SIS 800 50, making total
cash due both companies and unlawfully
withheld by the Government, the sum of
S2,5Si,052 80. These amounts are in eX-
cess of all requirements from the compa-
MES under the several Acts of Congress,
and are due the companies in cash"
The following lines have been absorbed
into the Southern Pacific Railroad Com
pany of California: Southern Pacific
Railroad Company, San Jose and Almaden
Railroad Company, Psjaro and Santa Cruz
Railroad Company, Monterey Railroad
Company, Monterey Extension Railroad
Company, Southern Pacific Branch Rail
way Company, San Pablo and Tulare Rail
road Company, San Pablo and Tulare Ex-
tension Railroad Company, San Ramon
Valley Railroad Company, Stockton and
Copperopolis Railroad Company, Stockton
and Tulare Railroad Company, San Joa-
quin Valley and Yosemite Railroad Com
pany, Los Angeles and San Diego Rail
road Company, Los Angeles and indie
pendence Railroad Company, Long Beach,
Whittier and Los Angeles County Railroad
Company, Long Beach Railroad Company,
Southern Pacific Railroad Extension Com
pany, Ramona and San Bernardino Rail
road Company. The total estimated length
of road provided for by such consolidation
amounts to 2,539.S9 miles of which there
was in operation on December 3lst. pa OF
miles
The capital stock OF the Southern Pacific
Company of California was on December
81 1857, $40, 994 500. This was increased
by consultations and cons ructon If
new lines $5,7S5 500, making a total on
December 81 1883, of $50, 292, 500. The
outstanding iuded debt was $43 $50 500,
equal to 1888 per mile. The report says:
by an indenture dated August %, 1SSS,
this company executed a deed of trust TO
the Central Trust Company of New York,
providing for a consolidated fifty. year )
per cent. loan. The bonds under this
mortgage are to be limited on newly-built
lines to So, 500 per mile of road, for con-
struCtion and equipment, and a further
amount of $500 per mile for possible
subsequent double tracking, additional
equipment and other betterments and addi-
tions. The outstanding bonds of the Pa
iaro and Santa Cruz, the Monterey, the San
Pablo and Tulare and the Los Angeles and
San Diego Railroads, amounting to 81, :
Monterey bonds, bear interest ct per
cent, are to be retired and Cancelled and
new five per cent. bonds issued therefor
Provision is also made in the mortgage for
the ultimate exchange of the new bonds
for the bonds issued under the mortgage of
the Southern Pacific Branch Railway. The
fifty-year bonds are lien, subject to exist
ing prior mortgages, on all the railroad,
rolling stock, and other property now
owned, or which may hereafter be con-
structed by the consolidated company,
excepting the line from Mohave to The
Needles, also the lands granted by
of the present thirty-year six per
cent. bonds of which there are now $33,
332 500 outstanding, the fifty-year bonds
will become first lien on the railroad and
landsn covered by such thirty year bonds
The payment of the thirty-year bonds is
calculated to be provided for by the pro-
ceeGs of land sales and the operation OF it,
sinking fund, so that the ffty-year bonds
which are limited 10 the total sum of $3S,.
1000 will become the sole first lien on
the entire property OF the company, pres
ent and prospective.
The report of the Land Agent shows ia j.
81. Sc acres sold, and the net amount Of
sales amounts to $40 $50 81. The United
States Government granted 10 the railroad
about 10 GOO, 600 acres of land, of which the
company sold Ito December 81, 1851 ,, 59l ;,
S44 acres, leaving about 7. 40S 1856 acres vel
unsold. These 1881 ,Si4 acres were sold al
an average of IS OF per acre, the purchase
price amounting to $3.50, 907 A, of which
the sum of SS,1s5, $40 81 is yet outstand.
ing
The Northern Pacific Railway shows &
total income of $500, S32 81 an expenditure
of S26250 81.
The Central Pacific reports show 1850. 2S
miles of road operated, the total income
from which was s.. 767 $50 %, and the ex,
penditure 81 1853, 0l6 81. In its account
with the Government the company reports
that under the Thurman Act the require
ment for the year was Si67, 2l7 80. The re-
port continues:
The sinking fund is wholly invested in
bonds which mature with the debt to the
United States, for the payment of which
the fund is established. They will thus be
payable at par, and the whole amount o.
premium paid therefore by the Secretary
OF the Treasury will be lost The result Of
the operation of this fund in the United
States Treasury from the beginning, July
1878, to December l, 1883, ten and a hal
wears is net loss TO the company of $500
952 Sc, added to the interest on all amounts
which have been paid into the fund
There renamed Que 10 the Central Pacific
Railroad Company on December 81, 1888,
for transportation on non. aided lines. prior
TO lease to Southern Pacific Company. 81 i,
06S ,l6l 81. There is also due 10 the South
ern Pacific Company for transportation
since the commencement of lease, 81 ,5l5
$50 50; making total cash due companies
and withheld by Government, s.. 5S4 052 Sc
These amounts are in excess of all require
ments Of the several Acts of Congress, anc
are due the companies in cash. The Court
of Claims has rendered repeated judgment.
in favor of the company for the paymen
of these charges, which have been affirmed
by the Supreme Court.
In view of the prospect that an agree
ment may soon be reached with the com
pany, providing for the final settlement o
all the accounts between it and the United
States, Congress- notwithstanding the jGdg
ments of the Courts. has made no appro
priation for their payment. The provision
for the payment of the debt to the United
States has, by the Thurman Act. been taker
from the company's hands aud assumed BY
the Government This has been clearly Sc