Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-02-21

Statement Issued by the Department
of Justice,

of Justice.
The following statement concerning the
settlement of the Pacific railroad obliga-
tons has been made at the Department of
Justice:
The agreement which has been con-
cluded between the Secretary of the Treas
ury, the Secretary of the. Interior and the
Attorney General, acting as commissioners
for the adjustment of the claims of the
government on account of its subsidy lien
against the Central Pacific and Western
Pacific railroads, practically terminates so
far as the United States government is
concerned the long course of difficulty,
trouble and agitation which has marked the
history of the Pacific railroad enterprise
1T will be remembered that by the bill
authorizing the construction of the Pacific
railroads, passed In 1862 the United States
agreed to lend It's credit to the various
racine railroad companies for the purpose
OF aiding them in the construction of line
OF railway from the Missouri river to the
Pacific ocean. For that purpose bonds
We're issued in aid of the Union Pacific rail
read to the amount of ST., 236. 5l2; to what
was subsequently known as the Kansas Pa
cine to the amount of $500, 600; to the Cen
trail Pacific to the amount of SO SS5 100;
and to the Western Pacific to the amount
OF Sl,9o56o. Upon these bonds, without
direct reimbursement the United States
paid interest from the date of their respec-
tive issues, SO that in 1897 there was due
to the United States from the Union Pacific
Railroad Company the sum of $5S, AS 223;
from the Kansas Pacific, in round numbers
the sum Of $13OO,000. On the LIST of Feb
ruary, 1879. there was due from the Cen
trail Pacific Railroad Company the sum of
S5S,3SJ,032. and there was due from the
Western Pacific on the same date the sum
of 81, 423, 662
These vast accommodations of principal and
interest due to the United States from these
companies have heretofore given great con-
Germ 10 the government. 1t having been the
common impression that the United States
would never receive anything like the full
amount of its investment by way of re-
turn. Various propositions have been ad-
vanced from the most conservative fnan-
GERS Tor the adjustment of these, claims.
ranging all the way from propositions to
settle for 30 cents on the dollar to refund
ing measures which We're intended to extend
the payment for 100 years
When the government lien against the
Central Pacific and Kansas Pacific had
been put in process of foreclosure and de-
crees of sale had been made. the admin
lstratlon then In power was disposed to be
Satlshed with a sale of the property which
would realize TO the government the sum
OF S+f,M0on upon the debt due on accoun.
OF the Union Pacific and the Kansas Pacific
property. After the accession of the nras-
ent dmn1strauon, taking advantage of the
more prosperous condition of business and
OF the Increase in the value of railroad
securities, the government was enabled to
take position which resulted in its realiz-
ing out of the sale of the Union Pacific the
total amount of the principle and interest
due to it, and out of the sale of the Kansas
Pacific the sum of 5000, 600. being the
whole amount of its principal debt against
that line, a total increase of $1S997 1853 76
over the sum which the reorganization com
mlttee first agreed to bid for the two prop
critics.
The agreement just made with the Cen
tral Pacific Railroad Company assures be-
yond the slightest doubt the full payment
or the debt of the Central Pacific and the
Western Pacific railroads. aggregating s5S,-
~, o.4S. This debt by the agreement is
funded for payment within the period of
ten years, one-tWentieth thereof being pay
able each six months during that period
and the government receiving 3 per cent
interest upon the balance remaining due
from time to time. The treasury will i'm
mediately receive about $4,000 900 bv the
sale of the first four notes maturing under
this agreement. which are taken by Speyer
& Co. as earnest of good faith and of
the reliance which they have upon the abil-
ity of the contracting parties to meet the
obligation entered into by the agreement
1.-THE total result of all these transactions
Is that out of these claims, which 1t was
once supposed would not realize to the gov
eminent 30 cents on the dollar the United
States will receive the enormous sum of
s123. 5G3 a39 23-enough to pay more than
six times over the amount due to Spain I'M
der the treaty of Paris for the Philippine
islands"