The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-12-05
Requests a Forty.Four Years
Lease of Life for Bond-Aided
Railroads.
MINDFUL OF HIS SUBJECTS.
He Declares the Government Would
Profit Greatly Accepting His
Proposition.

WASHINGTON, D. c., Dec. 4.-C. P.
to secure an extension of time for the pay
ment of the Central Pacific debt. This
proposition is substantially the same as
that defeated in the last Congress, viz !:
"To pay off part of the original and inter-
est at intervals Of six months for term of
years until the debt is extinguished."
Last January Huntington prepared
and caused to be sent to Congress
circular, putting at considerable
length the reasons why the Central
Pacific should be granted further time.
His arguments are thoroughly ia
miliar to Californians. Members of Con-
gress are again receiving copies of this
circular, though Mr.. Huntington's is
men who are known to be friendly to the
Pacific roads. Huntington's letter bears
date of March /. without naming the year.
The Reilly bill was defeated in February
last and Judge Mcguire believes this cir
cular may have been rewritten or re-
printed since the defeat of the measure in
the last Congress. Mr.. Huntington says:
THE time is approaching when bonds
advanced by the Government will become
due. Their non-payment will, of course.
make it possible for the Government to
take possession, by paying first mortgage
bonds, of that part of the Central Pacific
Rgilroad aided by it and lying between
Ogden and San Jose. But I hardly be-
lieve that such a course on the part of the
Government would be for it's interest. A
road could be completed in this age of
abundant labor and cheap material at
much less cost than the amount of the
first mortgage and Government lien.
Bonds must be issued to pay bonds and
the most we can hope for is a reduction of
interest. Many companies are now issu-
ing bonds to run 100 years, and the bonds
of one company (the West Shore) have
been issued to run 476 years.
eFor the sake of a final settlement, the
Central Pacific Company will accept bill
equal to something less than forty-fo
years. This proposition brings back to
the treasury all advances made by the
Government to Pacific roads. and gives to
the Government, in addition, larger in.
terest on the money than the Government
itself would have to pay if it went into the
market to borrow. The time is equal to
an extension of little less than forty-fo
years on the whole amount of debt, and
this is as short period as it would be safe
for any aided companies to agree to.
az know that the Central Pacific Rail-
road Company would carry out this agree
ment, paying currently, every six months,
the interest and some of the principal, I'M
til the entire debt would be extinguished,
and the Government would have security
that would be many times as valuable as
it is to-day"
Judge Turner of Georgia to-day asked
Powers OF Vermont, who will probably be
chairman of the Pacific Railroads Commit
tee, what Congress would likely do with
the Pacific roads this winter.
II don't know" said Powers, "but if ]
had my way | would grant them time in
which to pay rather than have the Govern
eminent sacrifice any part of its debt"