The morning call., 1894-03-28

| In years. having come 10 CaIiloInia III
early days. He comes of Huguenot stock
who settled in Amerira as long ago as 1859.
! He was born in Tarrytown, Westchesier
! County, n. Y.
| Were a division to arise among the
representatives of the four great in
terests of the Southern Pacific Rail-
road Company, which also control
The Central Pacific, an alliance of the
foreign stockholders in the Central Pacific
with one of these great interests might
cause quite a furry in the relations of the
two companies. Such a division once ex-
listed, and from time to time reports arise
which indicate that the old wounds of that
trouble have not entirely healed.
The past history of the Central Pacific
Company and its present financial con-
ditlon are matters which will prove of in
terest to the public In view of I he internal
upheaval which appears to be going on in
the official circles of that road. and the
purport OF which no man outside Of the
inner circles is in a position to fathom at
present.
A gentleman who is perfectly familiar
with the subject, who knows the road, its
N managers and its condition, past and
present, submitted the following facts to a
CALL reporter yesterday:
The Central Pacific Railroad Company
was organized and erected into railroad
corporation on the 2Sl day of June, 1861.
under the constitution and laws Of TIL
State of California then in force. The
total length of the Central Pacific between
Sacramento and Ogden Is 1880 miles.
The Western Pacific between San Jose
and Sacramento, 1876 miles. was consoii-
dated with the Central in 1870. OF the
nearly 500 miles of the Central Pacific
nearly or quite 200 miles are on level or
comparatively level surface.
OF the remaining 100 miles one half the
number is along the sides of mountains
and hills where grading the roadbed is
but little more expensive than tracklaying
on level surface Or the entire distance
across the Sierras not more than twenty
miles were unusually expensive and diff
cult. The only irregular surface portion
of the Western Pacific IS not TO exceed
four miles in the Niles canyon.
I'm connection with what will follow it
is worth while to remember these facts
because some months ago the southern Pa
cific had experts before the State Board of
Equalization who testified that The cost of
building mile of frst-class railroad on
level ground did not exceed $4,000. The
Pacific Railway Commission estimates the
cost in 1888 of reproducing the Central Pa
cifc from San Jose to Ogden at S31, ,972, ,920.
This includes complete equipment. 1t
may be reproduced fully equipped to-day
for S25. 100000.
'The Central was built between January
!, 1861, and December 81, 1867. Suppose
that the cost of building the road then was
% per cent in excess of what it would cost
to duplicate it now. This gives the cost of
construction, side tracks, rolling stock,
machine shops. machinery, stations, ETC.,
at $50. .966 80. or about $40, 800 for gevery
mile of road built.
Turn to the other page of the ledger and
approximate as nearly as possible the
amount the builders of the Central Pacific
received for their work:
First mortgage bonds ds...........,....S S27 ss5 $50
Second mortgage bonds................ 27,SS6. $50
SAFE OF 1S,453,670
Lana sales Tor cash................... 14,0OO,0O0
SSS. 225 $50
There were on hand besides $4,000 900
of unsold Central Pacific stock and unsold
Central Pacific land valued at 81 0. 500. 900.
"The claim has been pushed forward in
the name of an equity that SI4, ,0OO, 600 was
lost in changing the first and second mort
gage bond proceeds from a greenback to a
gold basis. The claim has no foundation
in fact as whole or in part. for large per
cent of the proceeds of these bonds we're
used in ths purchase of locomotives. ears,
rails and machinery at green back prices.
"Again, the charges on through freight
and easi bound passengers was collected
here In gold and paid to all roads east of
Ogden in greenbacks. Much more was
netted by this scheme than was lost on
bond exchange. During the long period
that there was discount on silver the
company sold its gold and met It's $780, GOO
per month payroll with deprecated coin.
The much-harped on equity hasn't leg TO
stand upon.
"The annual reports of the officials of the
Central Pacific. which are, or should be,
sworn to, give the following figures:
Absolute net earnings from 1853 to
December 81, 1863 69................... S2,427533
Absolute net earnings from january,
1870. to December 81, 1873 ......... 6.675,5Ie
Absolute net earnings for ten years
ending January l, 1884. 52,536,s16
Absolute net earnings from 1868
to January l, 1SS4...........$6I,5 ,539, 1858
"Since January l. 1SS4-ten years-the
reports show large annual net earnings,
but as all traces of the difference between
the cost Of construction and the amount
received. and of the immense sum of abso-
Lutte net earnings up to 1884 have entirely
disappeared. it would probably prove a
fruitless task to search for the profits since
that date.
Looking over these figures gentlemen
educated in the ways and means of legiti-
mate business will rapidly reach the con-
clusion that the Central Pacific is possessed
of sinking fund largely in excess of its
total Indebtedness, and that its stock COM
mands handsome premium. These same
Legitimate business gentlemen will be
astonished to learn that not only has the
road no money, but that there never were
but two dividends declared on the stock,
which is now quoted at IA cents on the dol
lar.
Naturally, the man who has been edu-
Gated in the Legitimate business line will
Inquire after the S49. 25S. $50 realized from
the first ana second mortgage bonds. the
sale of stock and of land AIso tho a heo.