The San Francisco call., 1896-06-25
Central Pacific First.Mortgage
Bonds of 100000 Ma
ture July I.
ARE RENEWED AT S PER CENT.
TIE Railway Examiner a "Dyed.in.
the.Wool but a Sound Money
Democrat"

Secretary Thompson of the Central
Pacific Railway Company had a distin-
guished guest yesterday in Mr. Storm of
Washington, d. G. The visitor caused a
furry in the executive department of the
railway company at Montgomery and
Market streets, for he had come all the
way from the National capital to make an
investigation into the condition and af-
fairs of the Central Pacific Railway. He
is the special representative of the United
States Commissioner of Railroads, and is
now acting in his official capacity.
Mr.. Storm will be here for several days,
during which time Mr.. Thompson will
make his visit very pleasurable expert
ence between spells of poring over figures
and statements in the railway Office. The
Government official is q courteous and
genial gentleman. While talking of rail-
road matters yesterday he found time to
say word about politics.
81 ami dyed-in-the-woolD Democrat" he
remarked. "But vet | am a sound-money
Democrat. Don't ask me what the people
are saying in the East about money. That
is the great moral question that is agitat-
ing the country. 1 believe that if silver
mans income would be reduced by half.
So it would be very bad thing for man
with a set, steady income, Everything
would Immediately go up in price, and
money would not be what it was
Then Mr.. Storm talked about railway
affairs, in which he was assisted by Secre-
tary Thompson. He explained that he
was here to investigate the Central Pacific
Company so that the Government would
get its due from the corporation as pro-
vided for in acts of Congress.
According to the Thurman act the Gov
ernment gets 25 per cent of the net
earnings of the Central Pacific and pays
nothing for transportation over the road.
That is, the cost of carrying mails, Govern
ment freight and passengers is credited
against the comp pany's debt every year.
In 1894 the Central Pacific in this way paid
$599, 900 to the Government. The fiscal
year ends Decem Der 81, and the annual
statement for 1895 is now finished and in
the printers hands. II contains statistics
of the roads standing with regard to the
Government, regarding interest, net earn
ings, Government transportation, ETC., and
Mr. Storm is examining those figures in
cOnU6CIlOH VIII NOuCu0TS dIU OIu0E uOCu-
ments bearing on the accounts. In a week
or so it is thought he will have concluded
his task and then, armed with a report, 60
back to Washington.
The issue OF first-mortgage bonds of the
Central Pacific mature July 1. They are
the second batch to mature, the first
having come due January last, and they
amount to something over $3, 0O0, 900. These
were issued in 1866 as the Central Pacifi C
was in course of construction and now,
after thirty years, they face the unruffied
countenance of Coils P. Huntington.
1t was learned yesterday that the fact
of few million bonds maturing was q
mere trif1e among railroad tinanciers.
"We have made arrangements, said
Mr.. Thompson, "to extend tne bonds un-
til 1885, when all the first mortgage bonds
mature. But this is being done at re-
ductlon in the interest from to pei
cent"
With this reduction of 1 per cent on
So, 100000 from January 1 and $3,000,OOC
from July L. 1896, the Government will
come in for materially increased slice Of
the net earnings.