The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-02-21
WILL GET S123,563,939.23
THE GOVERNMENT HAS DONE WELL
WITH THE PACIFIC ROADS.
Statement of transactions Given Out
by the State partment-MiIliOns
Saved to the People.

| WASHINGTON, Feb. 20-The following
statement concerning the settlement of the
! Pacific railroad obligations was made to-day
| by the Department of Justice:
| THE 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 ad-
! Justment OF the claims of the government
on account Of its subsidy lien against the
| Central Pacific and Western Pacific rail-
| roads, practically terminates, so far as the
! United States. .goyernment is concerned, the
| long course of difficulty, trouble and agita-
! ton 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 10 the various Pa
| clfic railroad companies for the purpose of
aiding them in the construction of a line of
railways from the Missouri river to the Pa
| citic ocean. For that purpose bonds were
issued In aid OF the Union Pacific Railroad
| to the amount of $27 ,236, ,512 to what was
| subsequently known as the Kansas Pacific
| to the amount of Sc. 393O 900: to the Central
| Pacific to the amount of $25, 8S5, l20 and to
| the Western Pacific to the amount of
! $l30560 Upon these bonds, without direct
felmpursement the United states PAID IN
| terest from the date of their respective is
! sues, so that in 1897 there was due to the
| United States from the Union Pacific Rail-
road Company the sum of sos, ,44S, 223; from
| the Kansas Pacific. In round numbers, the
| sum of $13, 200, 600. On Feb 1, 1899. there was
| due from the Central Pacific Railroad Com
%N''N
| due from the Western Pacific on the same
date the sum of S., ,423, 662
These vast accumulatiOns of principal
| and interest due to the United States from
| these companies have heretofore given great
| concern to the government, it having been
| the common impression that the United
States would never receive anything like the
full amount of its investment by way of
return. Various propositions have been ad-
vanced from the most conservative fnan-
ciers for the adjustment of these claims,
ranging all the way from propositions to
settle for so cents on the dollar to refunding
measures which were intended to extend
the payment for one hundred years.
when the government liens against the
Central Pacific and Kansas Pacific had been
put in process of foreclosure and DEGREES
of sale had been made the administration
then in power disposed to be satisfied
with sale of the property which would
realize to the government the sum of A4,-
100000 upon the debt due on account of the
Union Pacific and the Kansas Pacific prop
erty. After the accession of the present adj
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 posi-
tion which resulted in its realizing out of
the sale of the Union Pacific the total
amount of the principal and interest due to
it and out of the sale OF the Kansas Pacific
the sum of So 303, 600 being the whole amount
of its principal debt against that line,
total increase of $l899f 1876 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 the
Western Pacific Railroads, aggregating $685.
S1215.48. This debt, by the agreement is
funded for payment within the period of ten
years one-twentieth thereof being payable
each six months during that period and the
government receiving per cent. interest
upon the balance remaining due from time
to time. The treasury win Immediately
ceive about S12O00.000 by the sale of the first
four notes maturing under this agreement,
which arc taken by. Speyer & Co. as an
earnest Of good faith and of the reliance
which they have upon the ability of the
contracting parties TO meet the obligation
entered into by the agreement.
THE total result oe all these transactions
is that out of these claims which it was
cnce supposed would not realize to the gov
ernment 30 cents on the dollar, the United
States will receive the enormous sum of
$123, ,563, ,939 23-enough to pay more than six
times over the amount due TO Spain under
the treaty Of Paris for the Philippine