The evening times., 1898-09-24
THE CENTRAL PACIFIC
Preparing the Report of the
Government Commission.
THE ROADS INDEBTEDNESS
The Forthcoming Report of Mr..
handerlip. Assistant Secretary of
fhe Treasury, VIII he am Exhaust
i've and Complete History of the
Central Pacific Railroad Company,

The report on the Central Pacific Rail-
road, which Frank A. Vanderlip, Assist
ant Secretary Of the Treasury, is prepar-
ing for the Government commission Great
ed by Congress TO make terms for the
settlement of the Central Pacific indebt-
edness to the United States, Will be an
exhaustive and complete history OF that
remarkable corporation.
The last batch of Central Pacific sub
sidy bonds, TO the amount of 5000 G01,
will mature in January next, after which
time the Government will be free TO be-
gin foreclosure proceedings. The Gov
ernments claim against the company is
$59.G $50 net, sum which embraces
about 81, ,GOO,OO6 principal Of the bonds and
S32,G G90 in interest. The Government
bonds are second mortgage, as in the
case OF the Union Pacific. The bonded in
debtedness OF the Central Pacific and its
capital stock aggregates something like
S2eU COZ, ,0C0
Several committees representing the va
rious classes of securities OF the Central
Pacific are planning for reorganization,
and have been in consultation recently
with Secretary Kandernp 10 advise him as
TO their status and TO present arguments
WHY lL6S SnbAiu DC gwen recognition III
any agreement which may be drawn up.
There are at least five committees The
most active is one headed by Charles 5.
Fairchild, formerly Secretary of the
Treasury. Ii consists OF Mr.. Fairchild,
Former Minister Thomas +. Bayard, Silas
b. butcher and Edward Morrison, and
Right Honorable Lord Monkswel, Sir
John Lubbock, member Of Parliament,
and Walter Moreshead. all of London.
'fNbt-Se rem
stockholders. mostly English, TO the
amount of S5,0J0t50. They bought Cen
tral Pacific stock at par and claim that
they were buncoed. They insist that the
brokers who sold them the stock brought
loaded scheme over and made them
believe that the stock was earning per
cent and would continue to earn il until
the end of time. They bought the stock
In 1852 and left Mr.. Huntington and his
associates in control of the property OF
which they held So 600 out Of the S5S,-
O0O.0UO capitalization. In 1885 Huntington
leased the road TO the Southern Pacific,
OF which he is also autocrat, since which
time they have received no dividends, ex-
cept ] per cent which was voted for a
few years TO keep them quiet. Morshead
and Fairchild have been in Washington
frequently and in their conference with
Government officials have talked loudly
about taking up the Government claim
and thereby getting possession of the
road in their own name They have not
shown where they expect to get the nee
essary $53,U0OUOJ TO reimburse the Gov
ernment, but they talk as though they
had all the money in the world 10 draw
on. Government officials will not spend
this money, however, until they get it.
There is another committee from the
london stockholders which seems TO be
running in opposition TO the Fairchild
committee. Ii consists of f. G. Banbury,
chairman; J. b. Akroye, Alwyne Comp
ton, Daniel Marks, and Joseph Price, Of
London; August Belmont, John @. Car
lisle, and G. W. COppell OF New York.
w. 6. Gunner, Of London, constitutes
still another committee, and he has been
very active. Then there are two COM
mittees dominated by Speyer & Co. OF
New York, who claim to hold a majority
of the bonds (outside of the Government
bonds OF the Central Pacific. Speyer *
Co. are supposed 10 represent Huntington
and his immediate hackers.
Mr. Eanderlip is satisfied from his in
vestiSation so far that the Central Pa
ciiic Is worth a great deal more money
than Mr.. Huntington would have Con-
gress and the people believe. He is quite
confident that the Government viii fare
better than majority Of experts have
believed possible
BY act Of Congress the Secretary of the
Treasury, the Secretary of the Interior
and the Attorney General are constituted
d commission TO arrange for a settlemen,
of the compauy's Indebtedness TO the
United States. Mr.. Huntington viii pay
of the Government claim ii il is scaled
down about twO-thirds or a half or he
VIII enter into a deal for the extension of
the bonds.
Congress only allows for an extension
Of ten years, however, and Huntington
wants either fifty or A hundred. He is
only ninety years old, and thinks that if
he is given only ten years more he may
have to pay IL himself Ii is probable
that by the time Congress meets the
Government commission will be able 10
report considerable rogress.
The English stockholders are trying
hard to persuade officials, with whom they
have argued, that the Government has
valid claim against Huntington and the
Sutenrh Pacific for tho proceeds of an
enormous traffic diverted from the Cen