The herald., 1895-02-03

7 lhleEcsb On bHulb 10 maturity flG,OlO,
1872 80; total, $40, 036 zoo 81.
A. rhe bonds we're sold for gold, and
they had to be sold at a discount. jus
"a any other securities would at tina
time. They would have sold Mt par o
thsreabouts for legal tender, which wa
perfectly good for railroad purchases il
1he east. Both parties knew that tn
bonds we're expected to be delivered q
valued in legal tender. Moreover, tn
bonds are outstanding yet, and tn
United States will have to pay their fac
value and $50 per cent interest too. il
ali about SIS, 900, 900. instead of the Cen
trial Pacific, which is bankrupt. II i
indispensable impotence, after thes,
| fellows have baukrupted the road aut
are going to default for shat amount o
money, to demand that the United
States shall make them present o
another $40 900, 900 for them to deisul
on.
2. The amount which the government
saved on ito transportation over tn,
Central and Union Pacific roads from
May, 1869, when ths road was COM
pleted, to July l, 1875, to which date th'
completion might have been post
ponsd, ought now to be paid to the
company.
Proportion to the Central Pacific, say
46 por cent of the whole, S2I, 97l ,062.
A. The Central Pacific hurried TO gel
the Utah business and this government
subsidy for its own profit, or, rather, for
that OF its four directors. Now they come
and demand from the government $22.'
100000 to paw them for having made g
good many other millions. Again, the
road declared and paid dividends in
1873-4-5.6. On the principles OF this
equity" the United States should de
mand payment for that.
3. The company should receive the
amount due by the government foI
transportation in 1887. $l,853 329. 10.
A. So far as this is due, it ought to
be paid or else allowed on account.
There would be no equity" in paying
it to the company if the company owes
the government five times as much.
4. Lose to the company by refusal OF
the government to grant the company
patents for it's lands as rapidly as called
for, say S500,000
A. The railway commission says
there is not sufficient proof to support
this allegation.
5. Loss by sinking fund investments
in the United States tresaury, 1872. =
96672.
A. These sinking fund investments
were required by congress because the
railroads neglected to make any provi.
sion for paving their debts to the gov
ernment; and the companies are not
entitled to any favor or consideration in
the matter. 1t ia true that the sinking
fund has not done as much as was eX-
pected towards distinguishing the debt
oil the company. This is the usual fate
OF sinking funds. 1t would be- well to
cure this difficulty, but it does not en-.
title the companies to single dollar.
Their loss in this particular is their own
fault
s Loss by diversion of business from
the Central and Union Pacific to other
subsidized roads, s37 100000.
Proportion to Central Pacific, say 46
per cent, $l7 100000.
A This claim, es the commission OBJ
servss. is simply monstrous. 1t meanS
that the Central and Union Pacific lines
should have an indefinite monopoly OF
trenscontinental railway carriage; that
no other railroad line should be helped
by the government to cross the conti-
nent. la fact the Northern Pacific road
had received the promise of land grant
before any serious amount of work had
been done on the Central Pacific. But
the full lmpudencs of this claim only
appears when 1T is remembered that the
men who make it had themselves built
a competing road across the continent,
namely the "Sunset route"
The total amount called for by those
equities" was 62.S74, 557.Sl. Not one
single dollar OF it is clearly due to the
company, and for SOL 02l ,2346 Sc of it
there is not the shadow of justice in the
demand.
Mr.. Stanford claimed further that his
company had always expected to receive
from the United States for trRnsporta-
ton payment at the rates which prevail
ed before the road was built-that is,
by pack train or wagon-and ne said
it is very likely tru9-that with such
rates the company would have earned
enough to pay all it's debts. The suffi-
cient anewer to this ia that the very
reason why the government advanced
bonds to build the road was to save cost
as we'll as time in transportation. More.
over. the act giving the bonds directly
forbids any such payment. II provides
that rates OF transportation shall not be
higher to the government than to other
persone.
And lastly: Abundant evidence has
been furnished in these papers to show
that the statements of these railroad
| people are not entitled to any belief
| whatever.
RAILROAD OFFERS OF SETTLEMENT.
The obliging offer of MIR. Charles
Croker has been mentioned, that the
United States should find itself in deb.
to the road, and should hand over 8
sum of money in payment for its
| breaches OF contract with the road. So
has the hightonod impression of Mr..
| Cohen, that the commission should re-
port that it was all mistake, aud that
the Central Pacifip had fully performed
its duties to the government in every
| particular.
Various other offAra have bssn sug-
gested on the part Of the road, all OF this
came injured-innocence character, OIL
else in the nature OF trap fot the gov
| eminent. The frat wag pgopogition
thst the time for paying che deb. to the
| government should be extended fifsy
years. that the per cent bonds iasued
| to tho company uhonld be with
drawn, and the compnny's own bonds al
i per cent interest should be substituted
Another WAS to make the tims 100 yearf
and the interest 2 per cent. A still later
and more noble plan was. not for the
! Central Pacific alone, but for all the
| llnes leased to the Southern Pacific com.
! pany of Kentucky. to extend the time