The times., 1899-02-21
PACIFIC RAILWAY SETTLEMENT
Statement for the Commissioners
In the Deal.

In the Deal.
The following, prepared for the press
and sent out from the Attorney Generals
Office yesterday. will be read with interest.
Ii amounts to a statement by the Comms
sioners appointed to adjust Government
claims against the Pacific railways, con-
corning their action in the premises:
AN agreement which has been concluded
between the Secretary of the Treasury, the
Secretary of the Interior. and the Attorney
General, acting as commissioners for the
adjustment of the claims of the Govern
ment 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 its credit to the various
Pacific railroad companies for the pur-
pose of aiding them in the construction
of a railway line from the Missouri River
to the Pacific Ocean. For that purpose
bonds were issued in aid of the Union Pa
cific Railroad to the amount of s27. 1885, .5i2;
to what was subsequently known as the
Kansas Pacific to the amount of Sc, 303, 900;
TO the Central Pacific to the amount of
S25, ,SS5, ,120, and to the Western Pacific to
| the amount of $3.50, $50. Upon these
bonds, without direct reimbursement, the
United States paid interest from the date
of their respective issues. so that in 1897
there was due to the United States from
the Union Pacific Railroad Company the
sum of s5s,44s 223.75, and from the Kansas
Pacific in round figures the sum of $4,000
600. On the 1st of February. 1899, there
was due from the Central Pacific Railroad
Company the sum of s53, ,3s9, ,O52.74, and
| there was due from the Western Pacific on
the same date the sum of s5,423, 662.74.
"These vast accumulations of principal
and interest due to the United States from
| these companies have heretofore given
great concern to the Government 1t hav-
| ing been the common impression that the
| United States would never receive any
! thing like the full amount of its invest
ment by way of return. Various PROPOSE
| tlons have been advanced from the most
conservative financiers for the adjustment
| of these claims, ranging all the way from
| propositions to settle for 80 cents on the
| dollar to refunding measures which were
intended to extend the payment for 100
| years.
when the Government lien against the
Central Pacific and Kansas Pacific had
/ hoo in ~ y3o
crees of sale had been made the Admins
tration then in power was disposed to be
satisfied with sale OF the property which
would realize TO the Government the sum
of s44, 100000 upon the debt due on account
Of the Union Pacific and the Kansas Pacific
property.
After the accession of the present Ad-
ministration, 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 a po-
sition which resulted in its realizing out
OF the sale of the Union Pacific the total
amount of the principal and interest due
to 1t, and out of the sale OF the Kansas
Pacific the sum of s6.S03. 900, being the
whole amount of its principal debt against
that line, total increase OF SIS, ,997, 1863. 76
over the sum which the reorganization
committee first agreed TO bid for the two
properties.
THE agreement just made with the Cen
trail Pacific Railroad Company assures be-
yond the slightest doubt the full payment
of the debt OF the Central Pacific and tn,
Western Pacific railroads, aggregatinl
5s,s12 1913. This debt. by the agree.
ment, is funded for payment within tn,
period of ten years. one-twentieth thereo
being payable each six months during tina
period and the Government receiving 3 pc
cent interest upon the balance remaining
due from time to time.
THE Treasury will Immediately receiv,
about $4,000, 600 by the sale of the frs
four notes maturing under this agreement
which are taken by Speyer & Co. as guar
antee of good faith and of the relianc,
which they have upon the ability of th'
contracting parties to meet the obligation
entered into by the agreement.
The total result of all these transaction:
is that out of these claims, which it wa!
once supposed would not realize TO tn,
Government so cents on the dollar. thu
United States will receive the enormous
sum of s123, 500. .939 %. enough to pay mor'
than six times over the amount due t
Spain under the Treaty of Paris for tn,
Philippine Islands.