The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1897-01-08

would not stop now, he said, to demon
strate that that assertion was untrue, but
would so state tomorrow.
Lacey (k.) of Iowa asked why a divi-
dend of per cert was allowed on the stock
when the Government was to get but 2
per cent for its bonds, which were ahead
OF the stock.
because" replied Powers, 1--WE want
the stockholders to undertake this obliga-
ton and they won't do it unless they are
assured of a reasonable return upon their
money"
At present. Powers said, Central Pacific
stock was quoted at about 10 and Union
Pacific was worth nothing. The reorgani-
cation committee had issued certificates
TO stockholders liable to an ssessment of
S15 share which had been quoted at
about 10. The committee had endeavored
10 make the rate of interest 10 the Govern
ment at per cent, but had been COM
PEELED to fix the rate at per cent. The
committees believed that the companies
could comply with the requirements of
the bill. The Central Pacific would have
to pay $3,S25000 per year, fixed charges;
the Union Pacific So, 62S, 900 year. Upon
the basis of the earnings OF the companies
for period of years past it was estimated
that they could be depended upon to earn
net revenue of 100000 year. In
deed, it was inconceivable that the roads
could ever again pass through such a
period of depression rs they have for the
past three years.
Asked what estimate the committee
placed upon the additional pro perty to be
brought within the new mortgage Pow
ers said it was difficult to state. A
Senate committee ill 1890 fixed the value
at $92. 00O,0 900. The division superintend-
ent of the road said that the Denver ter
minals alone could not be duplicated for
less than $1,000, 900. while the Union Pa
ciic's coal lands were estimated to be
worth as much as the total am cunt of the
Government debt.
To Perkins (R.) of Iowa Powers stated
that the pending bill did not include with
in its provisions the Sioux City and Pacific
or the central branch in Kansas, neither
of which was part of the Union Pacific.
In conclusion Powers said the commit
tee, in its conclusions embodied in the
bill, was entirely in harmony with the
recon- lamentations of the Railway Commit
tee. The House had no business with the
quarrels between the Central Pacific and
Mayor Sutro of San Francisco. IT'S bust
ness was to provide for the payment of
a debt due the Governmental plan for
doing that the committee submitted to
the good sense of the mem ers.
The attack on the bill was opened by
Hubbard (R.) of Missouri, who prepared
the views OF the minority of the commit
lee. He said that, following Powers his.
tory of the legislation relating to the
Union and Central Pacific roads, he de-
sired to call the attention of the commit
tee to the provision Of the law of 1862,
which required that all the capital stock
OF the corporations should be paid in
cash. The facts were that the Union Pa
citic was capitalized at $50, 800, 000 of
which but 16 per cent was paid in the Gen.
trail Pacific at $6S, 100000. of VIII ich 10 per
cent was paid in; the Western Pacific at
1890 900, of which ~ per cent was paid
in, and the Kansas Pacific at Sc, GOO, 600, OF
which not cent was paid in In the
construction of the Union and Central
Pacific roads, Hubbard stated, there ac-
crued to those in charge profit of sixty
two millions; and there had been paid
in dividends on the Union Pacific, includ-
ing the Kansas Pacific, $2S. 900, 900.
II do not state these facts said Hub
bard, ''in any sense of antagonism to the
gentlemen who received these profits and
dividends. Ii they Fave violated any law