The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-02-17
DEBTS OF THE PACIFICS,
PLANS FOR THE REFUNDINQ OF
THEIR DEBTS.

Cent-The Central Pacific to Be AL
lowed seventy-FiVe Years at 2 Per
Cent.
WASHINGTON, Feb. 16.-The Senate
specal committee on Pacific railroads, after
uany hearings, have finally accepted the
reports Of Senator Frye on the Union
Pacific, and Senator Davis on the Central
Pqcifc. and agreed to a bill providing for
the refunding of their debts. The report on
the Union Pacific reaches the following
conclusions:
l. That the policy of building or acquir-
ing branch lines was wise, and, throu ga the
period covered by their inquiry, honestly
and economically carried out.
2. That the main line has derived i'm
mense advantage from the branches, and
that there is no foundation for the charge
that the latter have received undue benefit
from constructive mileage or otherwise at
the expense OF the m ain line.
8. That the building of the Oregon Short
Line, and the subsequent requirement of
the Oregon Railway and Navigation Com
pany's lines. instead of being menace to
the interest of the government, have proved
to be decided advantage.
EFFECT OF THE CONSOLIDATION.
4. That the recent consolidation of sew
eral branches under the name of the Oregon
Short Line, and the Utah Northern Rail
way Company, simpliies the system of the
Union Pacific makes possible more effect
i've and economical management, and, in
no regard, evidences any purposes of evad-
ing the obligations to the government.
5. That the branches, instead of being
maintained at the expense of the main line,
contribute at least $4,000, 900 a year to the
treasury of the company.
6. That improvements have been made.
for several years past, greater on the main
line than on the branches-some Of them
very important and expensive.
Z. That there is no evidence of any pur-
pose on the part of the company to surren-
der that portion of their road over which
the government has statutory lien, but on
the contrary, every reason tending to satisfy
any candid person that no such purpose ex-
lists.
s. That this is a capable, well managed
road, abundantly able to pay its debts, re-
curing only, like every other railroad,
Sime in which to pay.
9. That the present management is hon
est in trying to effect fair adjustment
with the government.
10. That the interests of the government
and Of the railroad company will be pro-
noted by settlement and that one can be
made now under which every dollar of the
government debt, with interest, will be
paid.
THE PRESENT SECURITY.
1t finds the present security to be a stat
utory lien on the road commencing three
miles west of the Missouri river extending
TO point five miles west of Ogden and on
another road commencing one half of
mile west of Kansas City and extending to
point 1913 miles westerly, commencing in
prairie and ending in one; not enough to
protect the government debt, If it shall not
be adjusted until it becomes due within
$50. 600. 900; while under the bill to be
reported the security obtained will be twice
the government debt in value and the pay
ments according to the terms of the bill
absolutely certain.
THE CENTRAL PACIFIC.
The report on the Central Pacific finds
that the United States has for security a
statutory lien on the road commencing at a
point five miles west of Ogden and extend
ing to San Jose, without terminal facilities
at either end, made subject to a mortgage
to secure bonds equal in amount to
the original Indebtedness of the company
to the United States; that that portion of
the road from Ogden to the westerly slope
of the Sierra Nevadas is practically only
ridge, without any local business of any
amount; that the roads reaching from the
main line into Nevada do not now pay their
annual expenses; that the present security
Of the United States upon this property is
entirely inadequate; that foreclosure of the
first mortgage would substantially ex-
haust, in satisfaction thereof, the entire
property, and that it would be inexpe5ient
for the United States to redeem it from said
first mortgage, or to become owner of the
property through redemption and fore
closure.
ADJUSTMENT A NECESSITY.
The report finds that it is expedient, neces-
sary and practicable TO adjust and further
secure the injebts iness to the United States
upon exteDisd siine at REDUCED rate of in-
terest with,n the ability OF the company to
pay, upon such ferEls as to advance the de-
yelOpment of the country through which
said roads pass, and afford the inhabitants
thereof reasonable rates Of transportation
for passengers and freight
From the report it appears that the Gen.
tral Pacific has not an ability TO pay at all
equal to that OF the Union Pacific, but un-
der the terms Of the bill to be reported can
make final and full payment reasonably
certain.
PROVISIONS OF THE PILL.
The bill agreed upon includes within its
provisions the Union Pacific Railroad CoIn-
pany, the Kansas Pacific Railway Com
nany, the Central Branch Union Pacific
aalIroad Company consolidated under tho
name Of the Union Pacific Railway
Company, the Central Pacific Railroad
Company, successor to the Contra! Pacific
Hailroad Company Of California, and tue
Western Pacific Railroad Company.
1t provides for finding the present worth
Of the indebtedness of the Union Pacific
Railway Company on July l, 1880,
and FOR the payment to the United
states of that amount with per cent. in
lerest, payable semi-annually; also por-
hon OF the principal semi-annually, 30 that
t4o entire debt shall be paid in fifty years.
IL requires that the Union Pacific SHALL give
mortgage on ali its property of ever y
gS9scrtption and also preserves to the United
States Its present statutory lien.
CENTRAL PAcIrC's PAYMENTS.
1t provides Cor tine ascertainment Of the
resent worth Of the debit of tie Centra
Faciiic Railroad Company; then fer the
payment " Interest at the rate of per
ceGsln per annum payable semi-annually
eua OF SO much of tho principal as shal
result IN the payment Of the entire debt ii
sss'enty-tive years. But in order to relieve
vuo road from too great g burden during the
ae1s ten years. when it is necessary for i
=. 70 maze somewhat extensive improvements
u caphalizes for that time one half Of 2 pei
cent. to DO paid.
me bl1 requires mortgage of the entirt
goSerty Of the Central Pacific Railroad
III ipany, including so,ne very important
81 NNnNs -.