Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1890-06-10
NATIONAL CAPITAL.
4 Bill to Prevent the Acquiring Of
Land by Aliens.
NEW SILVER BILL INTRODUCED.
Report on the Pacific Pailroad
Funding Bill-Land Decisions
Mail Pouch Rified.
ESPECIAL DISPATCHES TO THE REooRD-usIo
PACIFIC RAILROADS.
Majority Report on their Indebtedness.

Majority Report on their Indebtedness
to the Government.
WASHINGTON, June 9th.-The majority
report of the House Pacific Railways Com
mittee, accompanying the fusding bill, was
handed in to-day Chairman Dalzell and
others of the committee, failing to agree.
will in few days submit minority re-
port. The report says:
Any settlement made between the
United States and the Pacific Railway
Companies, in regard to their Indebtedness
10 the United States, should be made with
reference to and under the following,
among other considerations:
First-The settlement should be of such
character as not TO destroy the utter value
oil the stock OF the respective corporations
Second-That to large extent the pay
ment to be made on account of the Gov
ernment indebtness must be derived from
people living along the lines of the re-
spective roads. Competition on transconti.
mental traffic is of of such character as to
reduce the compensation for through SER
vice to low competitive rates, so that such
amounts as may be required TO be paid on
account of their Indebtedness to the
Government are necessary very largely
drawn from the local patrons of the road.
Third-That in connection with the set.
tlement the Government should obtain for
itself such further and additional security
as the companies, or either of them, might
be able to give, in addition to the aided
lines by which alone the respective debts
are now secured. 1t has therefore been
provided in the case of each company that
to secure the bonds to be given upon the
proposed adjustment of the debt a mort.
gage should be made securing and embrac.
ing. the entire property of the company
real, personal and mixed, including
all the right, title and interest of
the company in and to any
stocks, bonds or securities, or lands of aoy
branch lines or auxiliary companies in
which said company has any interest, and
to all railroads owned acquired or con-
tracted by the company, and all their
franchises, telegraph lines, rolling stock
fixtures and property of every kind and
description, as well as that which it or its
successors and assigns might thereafter
acquire, and that description and invent
ory OF all property covered by such
mortgage should be prepared under direc.
ton of the Secretary of the Treasury.
In the case of the Central Pacific, that
company and its lessees, the Southern Pa
cific Company are required to file modl-
fication of their lease, modified in such a
manner as to provide that during the term
" tAiS LhcA l6oSC lOi tdC DcueuJ Ol the
United States, all properties of the Central
Pacific Railroad Company shall be leased
to the Southern Pacific Company at an an
| nual rental or rentals which shall not be
less in any year during such term than the
aggregate OF all sums payable to the United
States during such year under the provis
ions of the Adjustment Act, and both
companies are required to consent that the
leasehold, estate and term of the Southern
Pacific Company and the income, rents and
profits of the lease shall be subject to
lien of mortgage provided by the Act so
that the lease of the Central Pacific Rail.
road to the Southern Pacific Company is
subject to and made further security for
the lien of mortgage to the United States
The report of the Pacific Railroad Com
mission and the report of the select COM
mlttee OF the Senate on the President s
message transmitting The report of the Pa
| cific Railway Commission, have fully
pointed out the disparity between the
Union Pacific and Central Pacific proper.
ties, both intrinsically and in their earning
power, and the necessity of adopting differ
ent modes of adjustment for the two COM
panies. Or, to put it in another form, the
ability of the Central Pacific Railroad
Company to make or carry out an
adjustment upon the terms prescribed for
the Union Pacific road. The President of
the United States, in transmitting the re-
port OF the Commission, pointed out the
fact that the success of any plan depends
upon its acceptance by the companies and
their ability to perform its condition after
acceptance"
The Commission had pointed out very
clearly the fact that the earnings of the
Central Pacific Railroad Company were
not such as to make it probable that they
could comply with the Act proposed by
the Commissioners, if it should accept the
same, and suggested that if it should be
deemed advisable to effect permanent
settlement with that company, method
by which that result might be obtained
would be reduction of interest to
a rate lower than per cent;
and, further, that the bill sub.
mitted Herewith could be brought
within the limits of the earning capacity
of the Central Pacific by reducing the rate
of interest which the bonds should bear,
suggesting this merely as a business
method of effecting the best adjustment
possible with these insolvent debtors.
From 1879 to 1883, both inclusive, the net
earnings of the Union Pacific Railway
Company have been Sc, ,29l, ,S53 ,4O4, and
the net earnings of the Central Pacific Rail.
road Company have been less than half
that amount, viz: $2,312, 1856, los.
The report concludes Some considera-
tions might apply in the case of the Gen.
trail Pacific Company. 1t will be observed
that while the amount payable during the
first period by the Union Pacific Railway
Company, under the bill as reported, is less
than the present requirements from that
company, under the Thurman Act, by
something like $4,000 or $40, 900 a year,
the amount required during the same
period under this bill from the
Central Pacific Railroad Company exceeds
the amount now required from it under
the Thurman Act by about $25O,O0O
year. II is believed however, that both
companies will be able to meet the re-
quirements under the Act now reported,
and that an adjustment upon a basis so
proposed will lead to the final payment of
the Indebtedness of both companies to the
United States.n