The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-02-17
THE PACIFIC ROADS.
Report u tie Sonata Committee
o. Pacific Railways
RELATiNo 70 sRAsecH LINES.
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wAssrxsrcs Crrr. FEB. Is 6-Ths senate
commstEes on Fzci6c railroads. after many
hea-inRs. . thorough investigation and
careful eonsid<rasicn, have finally accoptea
The reports OF Sen1for Frye On tie Union
Pacine and Senator Davis On the Centya1
Pacific, and agrscd 70 hin providing for
refanding The dehts.
The report on the Union Pacific reaches
ths following conclusions.
I. Thsf she policy cl building ~ acquirtng
brA1ca lines was wis. and through the poticy
covered b fheff inquiry honestly and sconon-
sceily carried OK
= That The main iiae has derived tmmeass
foundation fpe tbs eharge thok the lstter havs
derived pnaus bsneAs at u expense Of NE
mazu ifne.
4 1has ths buiidins of ths ouuRon short Line
ond subsequent oceutremen3 ~ the Oregon
Railway Navf xa&fon Co0panye nnes, instead
a. bsaug . msuaee to the insesests Of the ecs-
efnmeus, hare proved . decided edvanfAges
& Thsf the recent consolidation Of sovefal
branches under TIE name of ghe Oregon Short
Line Utah Northern Railway COMPANY siri-
plines the system Of the union Pacific, makes
poosibie more elective and economical manage
meat, and in no suenxd evidences any purpose
10 evA1e the ebiIonktons 10 the x0yeynmsnt
s. That ths hssnchss inseead - being main
tatasd 81 the expsnse of the maip dne. contrib
use - least sa,ooo.seo yeaf 70 shs treasury Of
the company.
s. Improvensnn have beea fos several pears
past GIeaser ou the main line than on The
branches, some of them very important and ex-
pcssive
!. TAss there IL no evidences of any purpose On
the part of the company TO snrrender that pos-
ton Of their road over which the government
~ ~~~~o- a.
eyery reason lending 70 satisfy any candid per
son shst no such purpose cxistG
& That this road Is capable. vsu managed
and abundantiy able 10 Say ~ deoaA requiring
only. like every other raiircad. sinse IN which
70 psy.
D. That management Il hoaeday txyipg -
effect fsir sdjuemsns With the Gbvernnent
10 That The interests Of the sovsrnment and
Of the railway company win BE- rgum0fed BY .
settlement and that one can - made nov
under which evesy dollar owed y the govern
menf. With interest. viii be paid.
Is finds the present security 70 Be stat
utory lien on the road commencing three
miles west Of the Missouri river and ex-
tending TO : point i've miles vest of Ogden,
and on another road commencing hail mile
west Of Kansas City and extending 70
point A0 miles westerly. commencing
in . prairie and ending in one. This is
not enough to protect government debt IL
il shall not b adjusted until Il becomes
due. while under the bill to Be Ipported the
security 10 b obtained viii b tHice the
government dsbt in value and payments,
and according 70 the terms Of the bill. ab-
solutely certain.
In the report Of the Central Pacific, IL
linda that the United States has for secur-
ity . statutory Hen on the road commenc-
ing II Z point i've miles west or Qa6en and
extending 70 san Jose. without terminal
facilities at either end. made subject to
mortgage to secure bonds equal ia amount
to the original Indebtedness Of the COM
psny TO the United states; that portion
Of the road from Ogden 70 the westerly
slope of the Sierra Nevadas IL practically :
bridge without any local business Of any
amount; that roads reaching from the
main line into Nevada do not now pay
actual expenses; that the present security
Of the United States upon this property is
entirely inadequate; that foreclosure Of the
first mortgage would substantially exhaust,
in satisfying thereof. the entire property.
and IL would be expedient for the United
States 10 redeem it from said first mort
gage or TO become owner of the property
through redemption and foreclosure.
The report finds il IL expedient. neces-
sary and practicable to adjust and further
secure the Indebtedness 10 the United
States upon extended time at reduced
rate Of interest within the ability OF the
company TO pay upon such terms IS 70 ad-
vance the development OF the country
through which said road passes and afford
the inhabitants transportation for passen-
gers and freight.
From the report II appears the Central
Pacific has not the ability 10 pay at all
equal to that OF the Union Pacific, but
under the terms OF the bill to be reported
IL can make final and full pay ment reason
ably certain. The bill agreed upon in
eludes Within its provisions the Onion Pa
cinc Railroad Company. Kansas Pacific
Railway Company, Central branch OF the
Union Pacific Railway Company oonsoli-
dated under the name Of the Union
Pacific Railway Company. Central Pa
ciEc Railroad Company. successor to
the Central Pacific railway of California.
and Western Pacific Railroad Company.
1t provides for the finding OF the present
worth of indebtedness Of the Union Pacific
Railway Company on July l, lsaD. and for
amount with per cent. interest, payable
senzi-annually: also . portion OF the
principal semi-annaaiiy: also that the
debt be paid in fifty years. Itrequires that
the Union Pacihe Railway Company shall
give mortgage on ali its property of every
name and description. real, mixed and per
sonAi. and also preserves 10 the United
States its present statutory lien.
In the event OF failure OF said company
20 accept the provisions Of the act there
shall be carried 20 the credit OF the sinking
fund ons-hait of the compensation for ser-
vices rendered the government and in ssidi-
ton thereto the sum OF q. .0o COZ year or
Is per eentam al the whole net earnings OF
,he Union Pacific Railway Company, ex-
senzisug also the provisions OF the Thurman
act TO the Kansas Pacific Railway Conn
psny and Central oEaach Of the Union
Pacific Railroad Company, that on failure
TO pay receiver shall be appointed to take
charge and nsnavs and operate the road,
branches and lines OF said company until
The principal and interest OF the debt shall
be suiiy paid
Section provides Cor the ascertainment
OF The present worth of debt OF the Central
Pacific Rsilro@d Con pany. then Tor the
payment OF tae interest ~ the rate Of 2
per cent. per xnnnsn. payzhle senai-&nnu-
ally and so much os the principal a. shall
result m the payment Of the entire debt In
seyenty-five years Bat in order TO resseve
the road from too much burden during sae
nsxt ten years il Is necessary Tor it TO
Esake sonss extensive improvements Ii
rxsssf - ex&x for thai fsyssA s,ne-haX nj r~v