The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-04-26

the income of that year could dis
charge On this basis it is estimated
that the payment Of fixed charges each
year will be: Central Pacific, $780,
$50; Union Pacific, S3,36S, 54S.
In each case a small margin IS left
to cover unexpected conting encies. The
report continues:
TT is provided that the charges due
to the companies from the government
for TRANSFORMATION of mail, supplies,
etc. shall be withheld by the govern
ment if default is made in any years
payment. These charges alone will
nearly meet the annual interest
charges The bill authorizes the Union
Pacific to issue new 4 per cent mont
gage for the amount of its existing
first mortgage, $54000,O 600. The central
Pacific is to extend its first mortgage
on the aided portion OF its line al
rate not exceeding 5 per cent. This,
added to existing first mortgages, az
gregaItes 500, 564 900, less the sinking
funds Applicable thereto, amounting TO
$40 763. 900. which leaves the mortgage
Indebtedness on the entire system
about $50, sol. 000.
In referring to the Union Pacific the
report says that at previous stages Vi
the history of this question, IL mas eiil-
braced a vast and well appointed prop
a
there now remains only The Union "a
citic railroad proper, embracing about
600 miles as a subject for COMPRESSION
al legislation. Even this property must
be regarded as subject to dlSmemper-
ment as result of any prolonged olniS-
sion on the part of congress to enact
LEGISLATION necessary for the protectlon
of the interests of the government. SIX
mortgage foreclosure proceedings are
pending. affecting the various mort
gage divisions of the Union Pacific rail-
road proper. three of these having been
instituted under mortgages prior to the
lien of the government.
Mr.. Powers report concludes: 1t is
manifest that unless a bill provldlng
for the settlement of the Indebtedness
of the railway is adopted by congress,
it must make immediate provision for
the payment of the first mortgage
bonds upon the SUBSIDIZED portions oL
the Union Pacific railroad and early
provisions for the payment of the like
bonds upon the subsidized parts Of the
Central Pacific railroad, and, in add1-
ton to this adequate provision for the
requirement of such portions OF the I'M
subsidized properties as are clearly IN
dispensable to the operation OF the
aided portions. In the present cond1-
ton of the treasury no funds are avail
able 1Or Sucn dppllcdllou anu IL LIZ
event that congress should desire to
carry such an undertaking into effect
it must Immediately provide the neces-
sary revenue to cover the appropria-
ton. The provisions reasonably neces-
sary for such purposes would exceed
$50 200. 600. The committee cannot rec
ommend any increase of the public debt
by the issue of the bonds of the United
States which would be required for
&c 1a1i bot
the first time in the history of this
matter, the relations of the Pacific rail-
roads to the United Staes may and
should unhesitatingly be dealt with as
a business problem 1t is believed that
this legislation should be comprehen-
sive and final and should terminate the
intimate relations of the government
with the enterprise of these railroad
companies"