The record-union., 1896-02-24

business. III SuOIli Tie question DGfOre
you, gentlemen, is whether this road
over the desert between the eastern
base of the Sierra Nevadas and the
western base of the Wahsatch shall be
used as bridge for all the roads reach
ing Ogden from the East or used for
only one.
FARES AND FREIGHTS.
s.As for the rates of fares and freights
on the Central Pacific, am quite sure
they are lower than those of any other
read in the world operated under the
same circumstances. The Central and
Southern Pacific west of ogden have no
great tonnage. While the fruit prod
ucts are fairly large, the miscellaneous
freight is not large, as say, west of the
Tooth meridian lies more than one-half
OF the acreage of the United States, with
not over 100000 of people. while east
of that line, on the same or less acreage
there are probably 65,O00,000 of people
to-day. The Chesapeake and Ohio Rail-
read, some few years ago, transported
in twelve months 29000,000 pounds Of
freight more than was handled over
the, say, 5000 miles Of the Central and
Southern Pacific west of Ogden and
New Orleans. Notwithstanding this
light tonnage, the average rates per pas
senger per mile for 1894 were 1916
cents, or less than two cents. The av-
erage rates per ton per mile for 1894
were l Ill cents, or less than II mills.
For the ten months ended October 81,
1885 the latest date TO WITCH we have
this information, the average rates We're
1.054 cents, or 1912 mills, which, con-
sidering the vast mileage and the high
cost of fuel and labor-in fact, almost
everything that enters into the opera
ton of these roads is much higher than
in any other part of the United States
is phenomenally low, and the roads
could not live unless those controlling
them were exceedingly watchful and
practiced a rigid and intelligent econ
omy, keeping their rolling stock and
permanent way in the very best condi-
ton, for these are the tools by which
the railroad makes its money.
But l have detained the committee
too long, and will hurry my remarks to
a close. These debts are soon coming
due, and hope you will offer US some
thing, the requirements of which the
company can meet have been in
business for myself sixty years, lacking
paid 100 cents on the dollar. While
this is not a personal debt of mine, yet
| take as much interest in the matter
as / would if I were the sole owner and
responsible for the Government claim;
for the Central Pacific is the first railroad
that L ever built, and no fairer or hon
ester work has ever been done. have
nothing to take back and nothing to
1Iays Il inc nd T
do not come here asking equities or
eulogies I only ask on behalf of the
Central Pacific Railroad Company that
you treat the question of settlement
with the Government on business prin-
ciples. If these are observed l have no
fear of the result / would recommend
the company to pay as much interest
currently as the road could earn over its
fixed and operating expenses, other than
the Government claim, as all other than
the Government claim is perfectly good.
there being little or no floating debt
and pay into the treasury of the United
States every six months a fixed sum un-
til the whole Indebtedness, both princi-
pal and the interest that has accrued
in the past, is paid As these payments
are made, the principal amount due the
Government will be steadily diminished,
while the property will continue natu-
rally to increase in value, for every
house that is built upon or near the line
will bring a new patron, and every acre
plowed will bring additional tonnage, so
that the security will be unquestionably
good.
eve had hoped the Government
would take 11a per cent. interest on the
great debt owing to it by the Central
Pacific and require a certain fixed sum
paid on the 1st day of January and the
1st day of July of ecch year until the
whole amount, comprising the original
principal of the debt and all the back
interest, had been finally and fully
liquidated In doing this, I should be
satisfied that we had done well by the
Government, considering the fact that
the road had received so little from the
Government business sent over it COM
pared with what it was expected, when
the Acts of go and "a were passed,
that the company would get. Up to the
time of the passage of those Acts, the
Government had been paying vast sums
for policing the vast area of country be-
tween the Missouri and Sacramento
Rivers. When the Pacific railroads were
completed and in operation, the Govern
ment might we'll say, we have builded
better than we knew, even if we get no
interest upon the money loaned toward
the construction of this great work; for
it was done seven years before the time
allowed to the companies for the COM
pletion of the undertaking, and in those
seven years the Government saved more
IL ~. 1,os, ,@1 -
ganizations' So well was it for the
Government, that it gave freely to the
Northern Pacific and to the Atlantic
and Pacific land which was of greater
value than the bonds and land granted
to the pioneer roads. The Government
must have realized that in doing this it
was deliberately destroying, or greatly
weakening, the security it had on the
Central line, because it was taking
away from it much of its earning power,
from which alone the Government could
expect a return of the money loaned,
and such was, in fact, the logical result.
Yet who doubts to-day that the wisdom
of the statesmen of that time was am
ply justified when the magnificent de-
velopments of the great West, due to
the onward march of the worlds great
est civilizer-the railroads. consid-
cred? For, from the moments of their
completion, these roads, like the Central
and the Union Pacific. have thoroughly
policed the wide expanse of territory
which they traverse, without cost to
the Government, and have made it pos
sible to settle up the arabic lands along
their lines.
but we shall have to leave to you
gentlemen of the committee the method
Of this proposed settlement. and | have