New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-04-26
PACIFIC RAILROAD DEBTS.
A REPORT on THE REFUNDING BILL PRESENTED
TO THE HOUSE

A
TO THE HOUSE.
Washington April 25-Charman Powers. of the
House Committee on Pacific Railways. to-day pre-
sented the report OF that committee to accompany
the bill recently prepared to settle the Indebtedness
OF the bond-aided Pacific Railroad companies to the
Government The report is volumnous, and covers
a number OF material points. 1t discusses the his
tory Of the issue OF the bonds. the Congressional
provisions for their repayment under the acts OF
1852 and 1864 and the Thurman act. detailed
statement of the debts OF the two roads on Janu-
ary l. 1897 the date when the law will go into
effect discussion of the different modes OF set
tlement, and analysis of the bill
IT Is argued In the report that the acts or the
Congress which prescribed the provisions TO be MADE
by the companies for the repayment of their bonds
and interest have been fully complied with by 'he
corporations. 1T believed by Congress- the
report continues. that the provisions so prescroeo
to be made would suffice to discharge the subsidy
bonds and interest thereon at maturity. As mat
ter of fact. they have not suficed for this pur-
pose
The report shows that the companies have repaid
to the United States sums which In the aggregate
almost equal to the entire amount OF the SUD-
sidy bonds In the case Of the Union Pacific Com
pany the repayments will exceed by S"o"o the
entne amount Of these bonds. But for the note
worthy decline in the rates of transport alton and
the greater appreciation Of the credit OF the uhi'ed
States" the report proceeds. 1T is believed 'ld'
the amount paid In would have suficed to pay the
whole balance of the account for principal ana
interest. or so large a proportion thereof that the
balance Of the indebtedness could be reasonably Sc
cured" -, 49, ,
Reference is made to the fact that the Army ana l
Navy transportation and postal service TO the "a
cic before the construction or the ROADS cos. tin
Government annually X,357.00O, while the cost or
much, greater transportation in 1894 was only sl,-
1853 900. 800 $780, "a,
The total indebtedness which will be due from the
Union Pacific Railroad January ], 1897. VIII be
in round numbers $92.0p,000. Deducting from this
SIS 100000 for payments TO the sinking fund and
credits for transportation and cash. leaves net
debt on the foregoing date Of sa.0UOco In the case
of the Central Pacific. the gross Indebtedness is
s75 10000 the credits $S00O0 900. the net balance being
So 100000 ,
The committee believes that 5000 600 Is fair aver
age Of their annual earnings which can be USED a :
basis of calculation In determining the amount OF
the Governments annual requirement on TINS
basis the Central Pacific will pay fixed charges as
follows each year: Interest at per cent on first
mortgage entire line 81 so eo 5 interest on Gove yer
ment debt 81 1853 $50 2s: instament OF principal 1850
600: total s3s25, 500 S.. On the same basis. the
Union Pacific will pay fixed charges each year as
follows: Interest at per cent on first mortgage
s2lSs 24O: interest on Government debt NOt3S I;
instalment OF principal 5000: total. $s2s5s H. In
each case a small margin is left 10 cover unex-
pccted contingencies.