The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-06-11

E~sssas Why ne eesssas - Gives Ls.gss
If1e e~r PnyWew&-
BAxnxwsrax CIR. Iane ~ LIN she Es51f1sy
rtp4r1 az fae Hsxsae cnmzIssos O. fAra6c rail-
sra1 faadEnx NIL tx5<ay s1ssret IL these az
rs:eAes last TAsrsdsy. 80 sone interesting
pa4rss nofaasy tass ca fhs ds2srsnce ssewsen
tAs EnEon Psrfse sad Centysi Pzrtec property
s@gsrasnx whs<h she con1itfss says.
s-Ths rzeiGc conmizstsn has pointed % ne
clear tses fkss ne eArutn9s II re ceassai kacac
are MT sseh - 20 cake II peobAbis thai they
coaId eonpEy ws.A the 80 prsposea By tue cora-
usssios.erx Il tie roed should seceps y 1he
mxtEei BY whsca sstfIsnens might Be 90
snau<si s<<d tie easn a.x<.onefs. weuAd Be ~
1u<tzou II futseszt 70 lower than . per cent.
AID srsshef. saat she bzii sEbufttet eosId bc
b1cnrs witsssa tbs itnfs 81 tbs earning paNtr o.
sre Csnsrxl fsesEe ~ reducing the rate Of IN
txrszs whseh me ROADS should scas Prom isss
10 Isss see.usfYs. tie n<as esrnsngs Of the Cen
ssai Pa1ahe hase been less than Eaif those OF The
ru.en facsec
Tn rss,ss. rsfsrsin scms detail 70 the nstnse
Of IKE eDvntxy tls1zgh which the two roads
rass OF fhe ceatfas Fscsfe the rspcTs ssFs:
the sensss expressed Il. the road from "
den 10 Esno Is aesssHg more shsn bridge
TIE mcde 81 Adjustment psoposed In fne osii
aceeHp4ayirx the rerSsrs differs in two rsspects
from thaf submitted with the Tsport Of tie SEN
~ eonsnsfte<- fsrxs- IN that onehaif Of the in
sefcss ON fsso unson Pscsns sehs for de nss
period Of Zen years hss been capitalized thus
ifmiEiax 20 mar extent fse amount payable on
hebAit 81 thes eofnp 2ay during the period pre-
esdsnr maturity 81 the hrst moSigase ponas
which pfecsde the government debt. sesnd n
that The ossssiputton az pzymsnts on account Of
tie PRINCIPAL or tntssxss Of the Central Pacific
debt hiss been szsimflssed sa the distribution ct
sueh psymenss pres<ssoed for the uaion Pacific
company. tie only differences being In the re-
QUESTION Of the rats AZ interest from per cent 70
2 per cent. and The extension ct the period Gov
cred ~ the sdlnsfrasut from Gfty TO seventy
eve yeau. The repess stdx:
The committee baifess that both these
changes are demanded by she differences in
The aitussion and earning capacity OF the
eomranfes and in order 70 secure IN
adjustment which each company may
reasonably nreept and b fairly expected
70 carry ont The nrst change u the only
difference. % far - the Union Pacific h COZ
eefues!. between The biIl reported herewith and
that reported to The Last congress when the
iattsr wss drawn the earnings Of the Union Pa
eide we're such that, alter Masking the payments
re9uisd. there wan.d hare been LETT a balance
eqMai 10 nesfiy per cent on the companys
ssoek. which was the rata III dividend p ruaifted
BY TIE bill Since then tss earniuTs have been
reduced By lower rates. aud its expenses en-
hansed ~ competition. so that, had said bill
beea enforced. there would have been lett. alter
meeting - requirements. lexs than per cent
upon the esmpany's capital stock. Tns
the COMMITTEES thiuks too small for
sasesT. aud therefore made the modi-
heslion In order 10 rednee the annual
payment rvauifcd during the neat ten ycsrs- In
that period The nrss mortgage bombs and ether
debts bearing hlgn rate OF interest viii mature
and during This time the charges upon the prop
srty are much larger than they will be- after
these detss have beea pad or refunded a. lower
rats 81 interest When thcse ten years have
passed. the ability Of the company will be
greater and liz burdens can be increased with
safety. What IS taken on during ,hess hrss zen
years il aided later. 20 the resuit 10 the United
states 10 the same.
"fhe sasne considerations apply In the cass Of
tho Central faeiae while the amount payable
daring the FIRST period By the Union Pacific IL
less than required by the Thurman ACT by yi5o.-
90 . year. Tho amount required during the same
period from the Cent-as Pacific railroad ex-
eeeds the ssnoanf required under the Thurman
act By about s25c 900 year. We believe an Cd
jnstment on the basis proposed In the hui viii
lad 10 the fnai payment of the Indebtedness Of
both companies to the government"