New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-02-18
IN THE NEW MEASURE.
nv TELEGRAPH TO me TRIBUNE.

IN THE NEW MEASURE
TELEGRAPH TO THE IkIBUNE.l
Washington Feb. 1.-THE Pacific Railroads Fund
ing bill full outline Of which was given IN yes
terday's dispatches. reported today III the sen
ate by Mr. Frye, the chairman of the select Cohll'V
Tee on the Presidents message transmitting inc TO
port Of the Pacific Railway Commission. Inc pro-
visions of the bill have been given in such ue'al'
that it is scarcely necessary to repeat 'ieh Ho"'
Rut Mr. FRYE accompanied the report THIS afternoon
with an informal statement of the results inc 'o'i'
mittee had arrived at, which, from lis breNIN anu
cearness may well as an excellent commentary
on the bill as published this morning lhe comm.
tee, Senator Frye said. had decided TO re'urn' W'1n
an adverse recommendation, the two bills Whoh han
noen referred TO it, and to draw an original BIZ
covering the general subject. Two reports We're
offered with this bill one on the Ihioh racine
Indebtedness prepared by himself. ana the olhcr on
the Central Pacific indebtedness. prepared by senator
Davis.
The reason why the two bills were reported back
adversely Mr. FRYE continued. was that the com
uittee had finally succeeded TO its own satisfaction
in consolidating these bills into one. This BILL now
prcscnted contained the terms OF an adjustment win
botb communicative Union Pacific and the Central
Pacific The report had been unanimously adopted
by the committee. The bill. so far as the Union Pa
cGc was concerned. had also been unanimously re
ported He might almost say the same Of 1t IN re
Iation TO the Central Pacific. He ought, perhaps to
add that the senator from Indiana Mr. Turpel Thought
that the Central Pacific Company should pay the same
rate of interest g per cent? the Union Pacific was
to paw. That was the only difference Of opinion that
he knew of in the committee touching the bill
Rv the bill the Union Pacific Company was re
oured to pay per cent interest and to pay It's ueoV
in fifty years. 1t required to give mortgage on
all lis property If every name and description Inc
committee found that that additional property whch
the United states received additional security
amounted to a great deal more than the deb' que 10
the United States; making the ultimate payment VI
the debt as certain anything hnmah 'ouIu ~
40 to tile Central Pacific Company the bIl reiufeu
the payment of it, debt in Sevcnty-hve years WIN
interest al the rate of > per cent. But the com
mittee recognizing the present serious condition oil inc
Central Pacific Company and the absolute he'eS'lH
for its building several important bridges lh 'dH.
fornia a. well building some addltlohal H'e9 VI
railroad there had determined that half OF inc per
cent should be capitalized for the first ten years
That benc done the Central Pacific would have to pay
for the first ten years about S65o,ooo Nedi- """
there was no doubt that IL could do that- ana dp""'
sl4OO. 600 a year al the end Of ten yeas II wa
,ri+a lean from SG5OO0O to $1AOO00O: hut between
now and ten years hence it was expected uld' '"o
Central Pacific having settled with the United state
onld fund at least s20OOOOOO Of its other indebted
moss which now paid per cent interest, at from
10 41-a per cent: and that that saving OF interest
alone would enable the company - meet ula' al
ditiOilal requirement.
added
as vet. sicnifed their acquiesccnce in the blil'
Tho Union Pacific had done at the last session I'
rcIatio, TO lll which made The same requirement,
t,, bs was informed now that the Union racine
Connanv did not think il could pay more IMAM
Der cert interest The committee however VIM"
had spent a good deal OF time and patience anu 'a'0
%, the subject believed that the Union Pacific Com
norv couId nav the 3 per cent, and pay the DEBT
i, ettv wears As 10 the Central Pdcinc Railroad
conpanv its officials had stated that they cohH Io'
nav more than Il per cent interest ana couu Io'
nav the whole debt in less than 125 years: and one
inpoitqnt Official OF the company had an eh'NcP
eincrept proposition not made by any otAer oliI''
rbc committee recognized the difference in con
si,.on between the Central Pacific Railroad Company
and the Union Pacific Company ana '"e
difficulties which the former womb ''
counter and ne later To ' pI,po.iij'n
The committee had carefully cosdeica P'e P'oP'9'n
made by the company, and had unanimously dIr'Fed
Al the conclusion that the Central Pacific Company
shouId pay its debt in seventy hve years WIFI PEI
cont interest The committee had reported IN TINS
bu BESIDES this. the Central Pacific Company h3p
requested that establishing the amount Vi ttc ,t
i1e find to be deducted m hndng the present. "".Ln
of the debt an allowance OF per Sy'' l,,tor bad
sinking fund should be made. me '1hin',Vo nt
declined TO make that allowance and had s'reNeh ou'
'n9 Tha Cetft Pacific Company was TO give morrare
on ali the roads and property OF every name "I' w.
,criptiOn Of the Central Iacnc system, i ,u ~
san lose, and also two important road, IA CaIorlnS
which had paving powers Of much create ~ re-
the road from ogden 10 san Jose ma ", -,,ta1
gaIded sufficient security ioi Ie ii' heretofore
bsS nrovided for Ilut the Central Pacific sy-tcm hiA
boen leased 10 the Southern Pdchc COMPANY 10 ~
nm Tho committee could not that the com
many would suffer i'm any degree 10y requirement uia1
maj lease should be made additional se'uiIS 20
,bo rnited Statcs Therefore the committee had IN,
ed in the bill provision. mt tdl inc hllta
secvndlv that Tie southern Pacific directors should
assent 10 the modlhgd,io" vi L 80, ,,,ntu the en-