The record-union., 1896-03-16

to San Jose was represented by notes
and bonds of the par value Of $3,940,-
600, disposed of for seventy-five cents
on the dollar, with 100000 additional
derived from sale of county bonds. In
addition to these aggregates of cost
there must be added in the way of snow
sheds, legal and general expenses, en-
gineering, machinery, tanks, etc., &c.
971 ,6SS. But Mr.. Klink in his affidavit
has stricken out unvouchered items of
s.. .90S, 1872, leaving the additional con-
struction, $4,062, ,956 The interest ac-
cruing during construction is legiti-
mate item, as much so as any other,
and this amounted to $1,669,332. To
this must be added the cost of the
American River bridge extension. re-
tanning walls, etc, $1,6S9, $40 %.
The aggregate is thus reached of $4S,-
6S3, ,74S, expended prior to June 30, 1870,
for the road to a point five miles west
of Ogden. But this did not complete
the cost, for there are other roads in
volved, the California and Oregon, SILL
2S7, ,726; the San Joaquin Valley, S4,-
100000; the San Francisco, Oakland
and Alameda, $500, 1T; the San Fran
cisco Bay line, $4,000, and to these
items must be added also the better
ments, the definition of which Mr.. Her
rim gave with clearness, and as gener-
ally understood, despite the disposition
of o,,nocipcr counsel tn con f1ISa tha term
betterments during fourteen years, the
settling of terminals, the replacing of
temporary with permanent structures,
broadening embankments, etc, but not
anything in line of mere repairs, nor of
operating expenses, $S,903, ,578, and also
the item of necessary purchase of real
estate, $7,771,734
The Southern Pacific Company took
charge of the roads under lease in April
1885, and to April, 1895, expended in
construction and betterments, which go
to the road and not to the lessee, 81
697, ,S2S Sc, and in necessary equip
| ment from 1892 to 1895, 81, ,S91, SAT SO;
so that the total cost is found to be, in
construction and betterments, $S7, ,306,-
| $50 77, or for the Central Pacific road
alone more than S27,000,000 in excess
of the bonded debt of the road, while
| the cost of all the roads is more than
| $15, 100000 in excess of the bonded in
| debtedness of the roads.
In further examination of the fact
roads exceeded the bonded indebted
ness, Mr.. Herrin in his argument before
/ the United States Circuit Court went
| into details drawn from the testimony
| introduced by the Railroad Commits
sion itself, as we'll as from other proofs
made before the court. The engineer
| in charge of the construction of the
Central Pacific Railway, he showed,
miles east from Sacramento to be $685.
500 mile without any equipment; the
| next 100 miles he put at $4,000 a mile,
and the next section, to within five
miles of Ogden, at $4,000 mile, and
he put the cost of rolling stock at SO, 900
mile, which gives a total of $47, $780,
500. Add the cost of the Western Pa
cific road, which it was shown amount
ed to So, 355, ,420, and on the basis of the
testimony of the engineer, we have a
total cost of the road from San Jose to
Ogden, $5O,915, ,920.
| The testimony of Governor Stanford
was referred to in which he said that
there was actually put into the con-
struction of the road, as the proceeds of
the sale of bonds, and State and county
aid, $46,062, 900, leaving the line then in
debt 81, ,S27, 900, making an aggregate
of $47, ,SS9, 900 of cost.
Counsel at this point debated with
clearness and in answer to Interrupt
tions the question of the conditions un-
| der which the road was built, the phe-
nomenal conditions of haste, high cost
Of materials and labor, etc, to show
that there was not only no extrava-
gance, but that the road was built with
economy, and that there was no profit
| to the contractors on the price paid
/
set forth these arguments, but that is
obviously impracticable within the com
pass of single article of this character
It may be stated, however, that the ex-
position shows that under normal con-
ditions in comparatively recent times
the construction of the Oregon line
through mountain chains similar to the
Sierra crossed by the Central Pacific
Road, the cost, with everything vastly
cheaper than in the other case, was an
average of SAC, 1854 mile. Taking what
the opposition claim to be exaggerated
cost of the Central Pacific, $4,000 a
mile, and conceding that 20 per cent, of
that cost may be eliminated, namely,
S11, ,309, ,552, deducting that amount
from the present cost of the Central Pa
cific Road, and the roads owned by that
company, which aggregates, as shown,
SS7, BOG. $50 II, and we have $75, $780,
94S X, or in excess of $4,000, 900 over
the bonded debt of these roads accord
ing to the allegations of the bill before
the court.
As to the equitable benefits not calcu-
liable in dollars and cents to California,
by reason of the hastened con-
Struction and the consequent ex-
istence of the transcontinental road and
the internal railway system that re-
suited from that construction, Mr.. Her
| rim gave a ranid but very eranInie