est attention which the magnitude of the interests involved deserves, I deem it unnecessary to go into an elaborate discussion of any of the plans proposed. That the law contemplates, and the public interest demands, the full reimbursement to the United States of the whole amount, principal and interest, advanced for the railroad companies, is unquestionable, and I beg leave to offer the following presentation of the ability of the Pacific Railroad Companies to discharge their indebtedness to the government.
THE ABILITY OF THE PACIFIC RAILROAD COMPANIES TO PAY.
In addition to the one-half of transportation accounts for services
rendered, the amount of which has been withheld and applied upon the
indebtedness of the companies, the act approved July 1, 1862, section
six, requires “that, after said road is completed, until said bonds and
interest are paid, at least five per centum of the net earnings of said
road shall also be annually applied to the payment thereof.”
The following approximation is made of the amount due from the companies on this account, exclusive of interest accrued by reason of nonpayment annually, to October 31, 1877, viz:
| Company. | Road completed. |
Years. | Gross earnings. |
Operating- expenses. |
Net earnings. | Five per cent. of net earnings. |
| U. P. R. R. | Nov. 6, 1869 | 8 | [1]$85,000,000 | $40,000,000 | $45,000,000 | $2,250,000 |
| C. P. R. R. | July 16, 1869 | 8⅓ | [2]75,000,000 | 33,000,000 | 42,000,000 | 2,100,000 |
| K. P. R. R. | Nov. 2, 1868 | 9 | 27,000,000 | 15,500,000 | 11,500,000 | 575,000 |
| W. P. R. R.[3] | Jan. 22, 1870 | 7¾ | ||||
| S. C. & P. R. R. | March 3, 1869 | 8⅔ | 2,600,000 | 2,100,000 | 500,000 | 25,000 |
| C. B., U. P. R. R. | Jan. 20, 1868 | 9¾ | 1,300,000 | 1,500,000 | [4]Deficit 200,000 | |
| Total | 190,900,000 | 92,100,000 | 99,000,000 | 4,950,000 | ||
- ↑ Including Omaha bridge earnings and operating-expenses, which are omitted from the published reports of the company.
- ↑ Upon the basis of 8661219 of the total earnings and expenses, which is subject, however, to investigation as to the actual earnings and expenses of the remaining portion of the road.
- ↑ Consolidated with C. P. R. R. June 22, 1870.
- ↑ An inquiry into this deficit is in progress.
Interest at the rate of 6 per cent. per annum being added to this sum of $4,950,000, from the time when the annual applications thereof should have been made, will increase it to more than $6,000,000, which is the amount immediately involved in the pending “Five-per-cent.” suits.
The ability of the Union Pacific and Central Pacific Railroad Companies to pay the above sums is fully demonstrated by the following facts, figures, and comparisons:
Omitting the Union Pacific and Central Pacific Railroad Companies from the enumeration, there were at the close of the year 1876, eight hundred and nine (809) railroad companies in operation in the United States, owning 76,258 miles of road. Of these, 181 only paid dividends;
