Democratic Sentinel, Volume 14, Number 7, Rensselaer, Jasper County, 7 March 1890 — IN A FAIR CONDITION. [ARTICLE]

IN A FAIR CONDITION.

THE SENATE COMMITTEE ON THE DEBT OF THE PACIFIC DINES. A Report Embodying; a Bill for the Settlement of Their Obligations to the Federal Government What the Committee Has Learned About the Finances of the Union and Central Pacific Companies. Washington dispatch: The Senate special committee on Pacific railroads, after many hearings, thorough investigation, and careful consideration, has finally accepted the report of Senator Frye on the Union Pacific and that of Senator Davis on the Central Pacific,and lias agreed on a bill providing for a refunding of their debts. The report on the Union Pacific reaches the conclusions that there is no evidence of any purpose on the part of the company to surrender that portion of its road over which the government has a statutory lien; on the contrary there is every reason tending to satisfy any candid person that no sifeh purpose exists, that this is a capable, well managed road, abundantly able to pay its debts, requiring only, like any other railroad, time in which to pay; that the interests of the government and of the railway company will be promoted by a settlement, and that one can be made now under which every dollar of the government debt with interest will be paid. The report on the Central Pacific finds 'that the United States has for security a statutory lien on a road commencing at a point five miles west of Ogden and extending to San Jose, without terminal facilities at either end, made subject to a mortgage to secure bonds equal in amount to the original indebtedness of the United States. That the present security of the United States upon this property is entirely inadequate; that a foreclosure of the first mortgage would substantially exhaust, in satitfaction thereof, the entire property; that it would be inexpedient for the United States to redeem it from said first mortgage or to become the owner of the property through redemption and foreclosure. The report finds that it is expedient, necessary, and practicable to adjust and further secure the indebtness to the United States upon the extended time at a reduced rate of interest within the ability of the company to pay, upon such terms as to advance the development of the country through which the roads pass and afford the inhabitants thereof reasonable rates of transportation for passengers and freight. From the report it appears that the Central Pacific has not an ability to pay at all equal to that of the Union Pacific, but under the terms of the bill to be reported can make final and full payment reasonably certain.