The record-union., 1896-08-16

| Treasurers statement of
bond and interest ac-
count Western Pacific,
as of March l, 1896. -. a,367 90
Total ..................S .S14 4941,273 %
Credits and judgments in
| favor of Central and
Southern Pacific to be
| applied ............ 2409, SIS 20
Accounts in process of
settlement, not yet
credited. about. .. 100000 90
| Transportation services,
ten months, at $500 600
per annum. .. 100000 90
| Interest accruing on
bonds in sinking fund
| from March 80 1896, to
| January /, 1897. ... 234. .367 50
Gfand total. .S1S, ,1S3, ,40S 80
This reduces the amount due the
| United States from the Central Pacific
Railroad Company to $57, ,6S1 ,514 20,
and for that amount the second mort
gage is given, not only upon the main
line but upon the feeders, the terminals
and all other property of the company.
| The company is to extend the first
mortgage bonds Gncluding those on the
| terminals and feeders) at a reduced
rate of interest, and to see that they
Go not interfere with the operation of
| the settlement or business of the road
| The Southern Pacific Company is re-
quired to guarantee the payments to
be made by the Central Pacific Railroad
Company so long as the two companies
maintain business relations which alb
| sOlutely secures them.
| To obviate the objection made that
| the charter of the Central Pacific would
expire in 1911, the committee inserted
a provision in the bill providing that
| the corporate character of the Central
Pacific Railroad Company should con-
tinue until its debt to the United States
had been fully paid.
| An objection has been made to the
rate of interest fixed in the bill at per
| cent.
| Why any Californian who loves his
State and desires to see it prosper, can
raise such an objection passes compre-
hension.
California, as I have before stated
must pay the bulk of this debt, because
liiC iOSdi OuSiHeSS Is d Irllle ana the
| through business is all that paws
| Hence, California is vitally interested
in keeping the rates of freight and fare
as low as possible. That is why large
number of persons in California favor
! Government ownership, because they
believe it would give them lower rates
A mistaken notion but one encouraged
by anti-railroad speakers and papers,
and very captivating to all on the Pa
cific Coast.
1t is as plain as the sun at noon day
in cloudless sky, that the lower the
rate of interest the mortgage carries
the less will be the annual payment,
and consequently the lower the rates
needed to earn that interest The ben
eft of a low rate of interest will all
come to California
Yet these California Congressman and
newspapers and speakers with mental
obliquity of vision, painful to contem-
plate, vehemently object to the low rate
of interest fixed by this bill.
The man who cut off his own nose to
spite his enemy's face was a Socrates in
wisdom compared to these Californians.
l can understand how some Eastern
people, interested only in getting the
money due the Government, could object
to the low rate of interest, but for any
Californian to object stamps him at once
as unacquainted with the laws of busi-
ness or the effect of the provisions of the
bill, as would be commended by an open
and willful enemy Of the State of Cali
fornia.
A cry has been raised by some news
| papers and persons that the Govern
ment is borrowing money at 31a per
cent. to loan the company at per cent,
and some good people following their
lead have made the same cry
The amount to be thus borrowed and
loaned has been variously stated, some
putting it as high as S131, 100000.
Mark how the facts prove the falsity
of this claim and how the truth again
shows the utter hollowness of this op-
position to this business settlement.
The amount of interest due the United
States by the Central Pacific has already
been paid, and hence no money is to be
borrowed for that
The amount of principal
Que is 81 ,So0, ,OoU w
The amount of cash avail
able and to be paid the
| United States as soon as
this bill passes is. ..... IS, ,1S5, ,45S 90
Leaving due only the
small sum of. ......... S9,G10 221 %
These bonds do not mature finally
until 1899, so that there will have been
three years payments made by the
company under this bill before the
United States is called upon to pay the
balance.
These three years payments amount
in round numbers to 81, ,545 900, which
deducted from the said balance leaves
only the insignificant amount of S5,125,-
221 05 to be paid by the United States
in 1890.
This is a mere bagatelle.
What becomes of the talk about the
Government borrowing such vast sums
at 31a per cent to loan the company at
per cent?
1t exists only in the fevered brain of
these anti-railroad people who are
hunting straws.
In the language of another, "They are
indebted to their imagination for their
facts"
1t is said that this bill is not the best
that could be obtained from the Pacific
Railroad Companies, and that better
| L.