Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1890-06-11
rAcIrIc FuNpINo REroRr.

pletel touay, the papers signeu ans
half a million paid. The remaining
g, OOO, 900 will be paid before July
LIST.
PACIFIC FUNDING RETORT.
wAsHESGrON, June IO.-in Tia,
majority report Of the House com
miltee on Pacific Railroads ON tn,
funding bills, briefly covered in
these dispatches last Thursday, AZ,
some interesting points, notably
that on the difference between tn,
Union Pacific and Central Pacific
property, regarding which the com
mittee says: "rhe Pacific commits
sion has pointed out the fact that
the earnings Of the Central Pacific
are not such rs 10 make it probable
that they could comply with the act
proposed by the commissioners, II
the road should accept it. 4 method
by which n settlement might be Oh
tanned, said tine commission, would
be a reduction Of the interest TO a
rate lower than 3 per cent, ani,
further, that the bill submitted could
be brought within the limit Of the
earning capacity Of the Central Pa.
cific by reducing the rate OF interest
which the bonds should bear. From
1879 to 1890, inclusive, the net earn
ings of the Central Pacific have
been less than half those of the
Union Pacific"
The report refers in some detail
d.
which the two roads pass. OF the
Central Pacific the report says, rs
the Senate expressed II. the rOad
from Ogden to Reno is nothing
more than bridge.
IHE MODE OF ADJUSTMENT
proposed in the bill accompanying
the report differs in two respects
from that submitted with the report
Of the Senate committee.
First, in thai One-half Of the in
tercst on the Union Pacific debt for
that period Of tan years has been
capitalized, thus limiting the
amount payable on behalf OF that
company during the period precei-
ing maturity Of the first mortgage
sonds, which precr-ls the cove N
ment debt.
Second, in that the distribution 81
payments on account Of principal
or interest OF the Central Pacific
debt has been made similar 10 the
distribution Of such payments pro-
vided for the Union Pacific Com
pany, the only difference being in
the reduction Of rate ON interest
from , per cent 10 > per cent ana an
extension of tine period covered 10y
the adiuftment from fifty to seventy
five Year..
The report aids that the commit
tee believes both If these changes are
demanded 10y the difference in the
situation aud earning capacity Of
the companies, aud IN order T. Sc
care an adjustment which each
Company may reasonably accept
and be- easily rxi ectrd TO carry out.
the first change j. the only differ
enue, 20 far a. the Union Pacific l.
concerned, betwctu the bill reported
herewith aud that reported at the
last Congress. When the latter was
drawn the earnings OF the Union
Pacific were such that, after max
ing the payments required, there
would have heen left a balance equal
nearly tD .rer cent on the cpm-
pany's stock, which was the rate 81
dividend permitted 10y the bill.
Since then it, earnings have been
REDUCED 10 LOWER RATES
and expenses cngendeTed toy COM
petition, - that hal said bill Jeen
IN force there would have been left,
after meeting tire requirements,
less than -. cent upon the COM
lany's tOtal stock. This, the COM
nilIgc thinks, i,iDO small for safety,
and they therefore made n modi-
ficItiOn ia the equal payments re-
Iuir,-i during the first ten years.
Ina this period the first mortgage
bonds and other debts beaTing a
high rate Of interest will mature,
lud during this time the charges
upon the prOIedy are much larger
nan they will Ice after these debts
nave been paid or refunded at a
over rIIe % interest. When these
.eu Year. nave passed tine ability
# the company will be greater aud
Is burden can be increased with
iafety.
What is taken of during these
iirst ten years is added later, 50
-he result 10 the United States
Is the same
The sane considerations apply in
he case Il the Central Pacific.
While the amount payable during
.hc first Ierip,i 10y the Union Pacific
IS less than required 10y the Thurman
act by SlSd,u 1b a year, the amount
-equircl during the same period
rom the Genital Pacific railroad tx
,eeds the amount required under the
Thurman act 10y about S2jn,O00 n
sear. Ii is believed that an adjust
nent upon the losses proposed ia the
Dill will lead TO a final payment of
he indebtedness OF both companies
o the government.
RICHMOND TERMINAL AFFAIRS.
NEW YORK, June IO.-It is re-
lorted ON the authority OF parties
high in Richmond terminal afIairs
hat the Northern. Pacific was Joined
with the Richmond terminal in the
leal, and would use the Baltimore
Ohio as the Eastern connection.
The deal is also said to include pro-
visions for an arrangement by which
he Pacific Mail Steamship Line
will make Tacoma a terminal point,
md give the Northern Pacific Rail.
Dad trans-Pacific service. Calvin 5.
3rice ami Samuel Thomas will he
directors Of the Baltimore x Ohio
N few days, and represent the new
interests in the board.
An EN-ConyIcrs Deed.
NEW YORK, June IO.-Mrs.
Mary Lester and her six year old
on were brutality assaulted by the