The record-union., 1896-05-09

COQLlOucQ compliance Dy DOtu the OuIOL
Pacific Railway Company and the Cen
trail Pacific Railroad Company with the
full requirements which Congress has
heretofore established; but with the ex-
pectation Of Senator Thurman, that the
sinking fund could be invested in Gov
ernment bonds upon per cent. or
anything like per cent. basis, utterly
failed, as for a very considerable por-
ton Of the time Government bonds have
sold very much nearer per cent.
than 5 per cent. basis.
Owing to the rapid decline in rates
and the great appreciation of the credit
of the United States (both of which ele-
ments operated favorably to the Gov
ernment and adversely to the interests
Of the companies), the prescribed pro-
visions have proved to be inadequate
to provide moneys for the payment of
the debt However, the payments act
ually made on account of the debt un-
der these requirements have been by no
means inconsiderable.
These companies have repaid to the
United States sums which in the ag-
gregate are almost equal to the entire
amount of the subsidy bonds loaned;
and in the case of the Union Pacific
Railway Company the repayments will
exceed by the sum of about $5,OOO,O 600
the entire amount Of the subsidy bonds
issued to its constituent companies.
But for the noteworthy decline in
rates of transportation and the great
appreciation of the credit Of the United
States, it is believed that the amount
paid in would have sufficed to pay the
whole balance of the account for prln-
cipal and interest, or so large a proper
ticn thereof that the balance Of the In
debtedness would be reasonably Sc
cured.
The decline in rates of transportation
is obvious when it is considered that the
army and navy transportation and pos
tai service to the Pacific before the con-
struction Of the roads cost the Govern
ment annually S7,357,7 ,7S1, while the
cost Of the like transportation on both
the Union and Central Pacific in 1894
(the latest year for which the accounts
have been made up) when the volume
of business transported must have been
many times as great as that trans
ported before the construction Of the
read, cost the Government only ST.
753, ,426 So.
On the other hand, the Thurman sink
ing fund, instead of earning = per cent.
per annum on. the amount invested
therein, has yielded only comparatively
insignificant returns, especially consid-
ering that it was created in 1873, now
eighteen years ago. The total amount
paid into the Thurman sinking fund by
the various companies, and the amount
now found in the sinking fund, with all
the accretions of the last eighteen years
added are as follows:
Amt now in
Paid In. Sinking
Fund.
Union Pa R. R. o..sn, ,75s, PA 81 SIS, .9s5 So
G. P. r. r. Co.......... $685. Az IS 6,493 l26 81
THE DEBTS AS OF JANUARY /,
1897.
From statements furnished by the
Secretary Of the Treasury, to which
have been added a proper proportion of
transportation earnings and sinking
fund contributions and accretions to
January /, 1897 (Which may be stated
almost with exactness), the committee
is able to make the following approx
mate statement as Of January /, 1897:
Subsidy bonds advanced to-
Union Pacific r. R-.S27, ,512 90
Kansas Pa. Railway. 6,3B, 900 90
Central Pacific R. r. 25, ,SS5, 120 90
Western Pacific R.R. 1,970,560 90
1855 $50 90