The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-02-19
PACIFIC ROADS.
The Interests Of The Government in The
Union and Central Systems.

NEW YORK, Feb. 1S.-The Commercial
Bulletin editurially discusses the relations
OF the Government to the Pacific railroads at
great length. 1t says concerning the Union
Pacific: 1T is safe to say the management
OF this property by the Government cannot
be more economical, not more eIterpnsIng
and not more capable in competition with
other lines than it has been under private
management. AS a Government road the
Union Pacific would not be allowed to charge
as much for freight rs it has been charging
in most cases. To all appearances the rail
road would not be able to pay expenses I'M
der such management, and would become
yearly charge on the people for the benefit
OF those who use IL, hold office on 1t, and
have contracts in connection with it. This
company has been taken as an illustration
only, because the largest, for the case OF
the Central Pacific is not essentially differ
emit and in many respects it is less fayora-
Bile for the Government. The time draws
near when the Government will be conf
PEELED to take these roads itself and run
them, probably at heavy loss. or effect
some new settlement with private inter
estS. "
OREGON IMPROVEMENT.
Wall-street Gossip refers to the rights"
offered the stockholders of the Oregon In
proyement Company as one of the most
valuable privileges ever offered the security
holder OF any corporation. Bond experts
say per cent mortgage, at very mod
crate estimate, Should sell at So or 80.
Los ANGELES CABLE.
CHICAGO, Feb 18.-A morning paper pub
fishes review of the litigation iii connec-
ton with the Pacific Railway of Illinois,
which owns the Los Angeles cable road and
which was recently put into the hands OF
receiver. Among other things IL gives a
summary OF an affidavit by Charles &. Whit
acre, representing some of the creditors, in
which lie claimed the suit under which the
company was placed in the hands of re-
ceiver was not in fact in the interest of the
creditors but Of certain heavy stockholders.
He sets forth that when the Pacific Com
pany bought the Los Angeles cable road
the latter was bonded for $1,500,0O0,
SS36,O00 of which bonds WAS held by
the Bank of California, and that road
was not worth that amount; that
the Directors and officers of both corpora
lions are the same and the buyers and
sellers III the transaction are the same.
Notwithstanding which S2,500,000 in stock
was issued on the property. The answer
alleges, III other words, that for the priv
lese OF trading they gave themselves s., 3OO,-
Goo. a number Of capitalists, banks and
corporations In this city and st. Louis are
creditors to the amount OF S1,237,0 900. In
addition there are floating debts of $3.50, 700,
and SS36,0O0 owing to the Bank Of Cali
fornia of San Francisco, which, however, is
oCSulOu ny oil SAutl uulOuLI VI JULIUS lSou6u
by the Los Angeles Cable Railroad Com
pany.
CHARGES DECLARED FALSE.
Director Hughes of the Louisville; New
Albany and Chicago Railroad Company has
made statement to the Associated Press in
regard TO the suits for receiver of that road
begun by w. 5. Alley of New York. He
declares the general charges in the bill are
false, and that the specific charges amount
to nothing. lie says the animus OF tine bill
lies i'll the fact that the present management
refused to pay the claim of Alley for conf
missions for The sale of bonds of the cor
poration some years ago, on the ground that
there was no agreement with him touching
the matter