Omaha daily bee., 1897-03-04
DEMAND ON CENTRAL PACIFIC.
Assistant Treasurer Berry After D,bt
Due the United States.
GOVERNMENT ASKS FOR THE AMOUNT DUE
officials Had No Expectation of RE-
ceivinE Payment and Were Not
Disappointcd--SimpIy To Keen,
the Record i'm shape.

SAN FRANCISCO, March S.-Campbell p.
Berry, assistant treasurer OF the United
States. stationed in this city. started out on
quest a day or two ago for So, sos. .210 06,
but so far he has failed to make the collec-
tion. Under instructions from the secretary
of the treasury, bearing date OF February
II, Assistant Treasurer Berry was instructed
TO demand of Isaac l.. Requa, president OF
the Central Pacific Railroad company, and OF
the treasurer of that company the sum men
toned, in order that the governments case
might not be prejudiced in the future by
failure to demand the exact sum claimed to
be due from the railroad company. The
government did not expect the demand to
be met and was not disappointed. Within
a few days the railroad company, through
Its resident attorneys, will make n detailed
reply to the government. setting forth the
Offsets and counter claims which IL will be
contended more than balance the amount OF
the demand. 1t will be maintained on be-
half OF the road, that 1t has many judgments
which affect every department OF the govern
ment, and that the aggregate of these claims
more than counterbalances the demand OF the
United States. The demand Is the result Of
the sale during last month OF block of
twenty mortgage bonds of the railroad COM
subsidy bonds. An act Of con-
gress, passed in 1873, prescribes
the procedure whereby the bonds
were sold and by its terms implies that
specific demand is requisite to the govern
ment's role of angel to the railroad
corporation. When sold, the railroad bonds
did not yield the amount of the bonds issued
by the government. The deficit is the amount
for which the demand in question was made.
The sum claimed by the government in
cludes interest money. and 1t Is said that
the railroad company will base It's resistance
to the demand upon the acts OF congress
regulating the relations of the government
and the railroad, and providing that no in
terest shall be deemed to be due until the
entire Indebtedness is determined and ad-
justed
President Isaac l.. Requa of the Central
Pacific was seen at his Piedmont home last
night. His own knowledge of the situation
formal request for the enormous sum in
volved in the matter had been received by
him and filed for considerati tion when the
officials of the road should assemble
81 was notified on Saturday last he said,
"by the assistant subtreasurer in San Fran
cisco that my road would be expected to
pay over nearly $10,000,C00. l cannot say
the demand was unexpected, and at the same
time l cannot say that 1t was looked for.
When / received the notification. | simply
placed it in shape to be considered when
we next gather as officers of the road to
handle our regular business and passed the
of course, to those best en-
titled to krow Of it. l am compelled to
deny you any detailed explanations of what
we may do in the matter, but only for the
reason that I, myself, am not aware of the
course we shall pursue.
There is no telling what will be done |
but it is safe to presume that the road will
accept the situation as it now stands and |
by no means antagonze the government |
[ have absolutely no views to express in |
The matter, and know that no one else con- |
1ected with the road could tell any more |
am sorry there is nothing to be said in |
our behalf, but such is the case and will |
De so until the road regularly considers the |
demands. We are not pre-
'ared to offer any criticism just at this mo-
nent -