The Delta independent., 1890-04-01

Pacific railroads report the following
| conclusions:
That the policy OF building or acqu;r-
ing branch lines was wise. and.
through the period covered by their
inquiry, honestly and ononaically
carried out -...
That the main line has derived an
immense advantage from the branches.
That the building of the Oregon
Short Line and the subsequent acquire
ment Of the Oregon railway and Navi-
cation company's lines, instead Of be-
ing menace to the interest OF the
government, have proved to be a de-
cided advantage.
That the recent consolidation of sew
eral branches under the name OF tho
Oregon Short Line and Utah Northern
Railway company simpliies the sys-
TEN of the Union Pacific, makes possi-
BILE a more effective and economical
management.
That the branches, instead OF being
maintained at the expense OF the main
line. contribute at least So, GOO, 900 a
year to the treasury OF the company.
That the Improvements have been.
for several years past, greater on the
main line than on the branches.
That there is no evidence OF any
purpose on the part of the company to
surrender that portion of their road
over which the government has a
statutory lien.
That this is a'capable, well-managed
road, abundantly able to pay its debts,
requiring only time in which to pay.
That the present management is
honestly trying to effect fair adjust
mont with the government
That the the interests of the govern
ment and of the railway company will
be promoted by settlement.
1t finds the present security to be a
statutory lien on road commencing
three miles west OF the Missouri river,
extending to point five miles west OF
Ogden, and on another road commence
/, ing one-half mile west of Kansas City,
md extending to q point 393 miles
westerly, commencing on a prairie and
ending in one; not enough to protect
the government debt if it shall not be
adjusted until it becomes due, within
fifty millions of dollars.
| The report on the Central Pac ific
finds that the United States has for
security statutory lien on road
commencing at point five miles west
Of Ogden and extending to San Jose,
without terminal facilities at either
end. made subject to mortgage to
secure bonds equal in amount to tie
lsoriginal Indebtedness Of the company
to the United States; that that portion
Of the road from Ogden to the weste rn
slope of the Sierra Nevada is practi-
cally only bridge. without any local
business Of any amount; that the road s
reaching from the main line into
Nevada do not now pay their actual
expenses; that the present security OF
the United States upon this property
is entirely inadequate; that foreclos-
ure of the first mortgage would sub
stantially exhaust in satisfaction there
Of. the entire property, and that it
would be inexpedient for the U pited
States to redeem it from said first
mortgage, or TO become the owner oi
the property through redemption and
foreclosure.
The report finds that it is expedient,
necessary and practicable to adjust
and further secure the indebtedness to
the United States upon extended time
at reduced rate of interest
The bill agreed upon includes with
in its provisions the Union Pacific
Railroad company, the Kansas Pacific
Railway company, the Central Branch
Union Pacific Railroad company. con-
solidated under the name OF the Union
Pacific Railway company, the Central
Pacific Railroad company, successor to
the Central Pacific Railroad company
Of California, and the Western Pacific
Railroad company.
1t provides for finding the presen,
worth Of debtedness OF the Unio1
Pacific Railway company on the Is,
day of July. 1890, and for the payment
to the United States OF that amount,
with three per cent interest, ayable
semi-annually; also portion of princi
pal semi-annually SO that the entire
debt shall be paid in fifty years.
To that the Union Pacific Railwa,
company shall give a mortgage on al
OF its property OF every name and de-
scription, and also preserves to the
United States it's present statutor,
lien.
That in the event Of the failure oi
said company to accept the provisions
OF the act there shall be carried to the
credit OF the sinking fund one-half o
the compensation for services rendered
for the government, and in addition
thereto the sum Of ~. 900. 900 a year o.
seventy-five per centum OF the who'll
net earnings OF the Union Pacific Rail
way company; extending also the pro
visions OF the Thurman act to the Kan
sas Pacific Railway company, and tn
Central Branch Union Pacific Railroa,
company: that on failure to pay. a re
ceiver shall be appointed to take charg
of, manage, and operate the road
branches, and lines Of said compan
until the principal and interest OF tn