New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-02-17

4 PACIFIC RAILROAD REFUNDING BILL.
nF THE ROADs-A SCHEME FOR THE PAY
MENT OF THE UNION PACIFIC DEBT
IN FIFTY YEARS AND THAT OF THE
CENTR Al. II SENENTY 1--WE.
CENTRAL IN sEvENTY-FIvE.

Washington. Feb. 16.-The senate special Com.
mittec on Pacific Railroads, after many hearings,
thorough investigation and careful consideration, has
finally accepted the reports of senator Frye on the
Union Pacific and senator Davis on the Central
Pacific and agreed to a bill providing for a refund
ing of their debts The report on the Union Pacific
reaches the following conclusi0ns
the policy OF building or acquiring branch lines
was wise and period covered by the inquiry,
honestly and economically carried out.
. main line has derived an immense advantage
from the branches and that there is foundation for the
charge that the latter received undue benefit from
mileage otherwise at the expense Of the
main line.
g. That the building Of the Oregon Short Line and the
subsequent requirement Of the Oregon Railway ana Nav
cation Comuanys lines, instead OF being menace 10 the
Interest OF the Government have proved to be decided
advantage.
. That the recent consolidation Of several branches
under the name OF the oregon short Line ana Otan
Northern Railway Company. smplihes the system OF the
Union Pacific possible more effective ana economic
cal management regard evidences any purpose
Of cyading the obligations TO the Government
g. That the branches instead Of being maintained a.
the expense Of main line contribute al least sooooOOo
a year 10 the treasury Of the company
Tba. the improvements have BEEN for several years
mast greater on the line than the branches some
Of them very important and expansive
That there i no evidence Of any purpose on tne
mart NJ the company to surrender that portion OF their
r,,d over which the Government has statutory Hem
an the contrary there every tending TO satisfy
any candid person that such purpose exists.
s That this Is capable. wcmanaged road aoun'
dantly able to pay it, debts requiring only Ae e'o'S
other railroad. time in which to pay.
o. --at the present management is honestly trying "
effect a fair adjustment with the Government
TO- That tha interests Of the Government anu VI Hio
railway company will BE- promoted by settlement anu
that one can be made under which every uolsr u
the Government debt with interest. will be plo'
The report finds the present security to be s'a'u-
tory lien ON a road beginning three miles west OF uio
Missouri River extending to point hve miie' west VI
Ogden and on another road beginning one hah Hllio
west of Kansas City, and extending 10 polhV %"
miles westerly beginning in prairie and ending IN
one This security IS not enough to protect Tue uo'
ernmcnt debt il it slal not be adjusted before IL DO
comes due within $4,000. 900: whie under the bill 10
he reported the security obtained VIII be Wice
the Government debt in vauc, and the payments ac-
crdin, ~ the terms Of the bill. absolutely certain.
rbo rcnort ON the Central Pacific finds that tho
r-ri,od states has for security statutory lien on
road beginning at a point five miles west OF ogden
and extending to Jose, without terminal faciIi-
ties at either end made subject TO mortgage TO
socurc bonds equal in amount to the original In
debcdness OF the company to the United states thst
tha norton OF the road from ogden to the westerly
sIopc of the Sierra Nevadas is practically only
bridge without any local business of any account:
,I,,t the roads 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 foreclosure OF
the first mortgage would substantially exhaust, In
satisfaction thereof the entire property, and that ii
would be incNpedicnt the United States TO redeem
Il from said first mortgage, TO become the owner
Of the property through redemption and foreclosure
The report finds that it is expedient, necessary and
practicable 10 adjust and further secure the indebtc1