Chapters on the History of the Southern Pacific

by Stuart Daggett

[514] San Francisco Bulletin, November 20, 1894. Sir Rivers Wilson was ex-controller of the British National Debt Office.

[515] Testimony of Mr. Huntington before the California Railroad Commission, San Francisco Examiner, May 14, 1898.

[516] Huntington Manuscript, p. 91. On the general subject of the Thurman Act, see Davis, “History of the Union Pacific Railway,” Ch. 4.

[517] United States v. Union Pacific Railroad, 91 U. S. 72, 86 (1875).

[518] United States Pacific Railway Commission, p. 2529, testimony Leland Stanford. In order that the reader may have full data concerning the issue of the Government subsidy bonds, the following table of amounts and dates of issue is presented:

United States Six Per Cent Currency Bonds Issued to Central Pacific Railroad Company

Date Issued			Maturity of Bonds			Interest Commenced			Amount
May	12,	1865	Jan.	16,	1895	Jan.	16,	1865	$1,258,000
Aug.	14,	”	”	16,	”	Aug.	14,	”	384,000
Oct.	16,	”	”	16,	”	Oct.	16,	”	256,000
Dec.	11,	”	”	16,	”	Nov.	29,	”	464,000
Mar.	6,	1866	”	1,	1896	Mar.	6,	1866	640,000
July	10,	”	”	1,	”	July	10,	”	640,000
Oct.	31,	”	”	1,	”	Oct.	29,	”	320,000
Jan.	15,	1867	”	1,	1897	Jan.	14,	1867	640,000
Oct.	25,	”	”	1,	”	Oct.	25,	”	320,000
Dec.	12,	”	”	1,	”	Dec.	11,	”	1,152,000
June	10,	1868	”	1,	1898	June	9,	1868	946,000
July	11,	”	”	1,	”	July	10,	”	320,000
Aug.	5,	”	”	1,	”	Aug.	4,	”	640,000
”	14,	”	”	1,	”	”	13,	”	1,184,000
Sep.	12,	”	”	1,	”	Sep.	11,	”	1,280,000
”	21,	”	”	1,	”	”	19,	”	1,120,000
Oct.	13,	”	”	1,	”	Oct.	12,	”	1,280,000
”	28,	”	”	1,	”	”	26,	”	640,000
Nov.	5,	”	”	1,	”	Nov.	3,	”	640,000
”	12,	”	”	1,	”	”	11,	”	640,000
Dec.	5,	”	”	1,	”	Dec.	5,	”	640,000
”	7,	”	”	1,	”	”	7,	”	640,000
”	30,	”	”	1,	”	”	29,	”	640,000
Jan.	15,	1869	”	1,	1899	Jan.	13,	1869	640,000
”	29,	”	”	1,	”	”	28,	”	640,000
Feb.	17,	”	”	1,	”	Feb.	17,	”	640,000
Mar.	2,	”	”	1,	”	”	17,	”	1,066,000
”	3,	”	”	1,	”	Mar.	2,	”	1,333,000
May	28,	”	”	1,	”	May	27,	”	1,786,000
July	15,	”	”	1,	”	”	27,	”	1,314,000
”	16,	”	”	1,	”	July	15,	”	268,000
Dec.	7,	”	”	1,	”	”	16,	”	1,510,000
Jan.	2,	1872	”	1,	1898	Nov.	28,	1868	4,120
—————
Total									$25,885,120
Jan.	24,	1867	Jan.	1,	1897	Jan.	26,	1867	320,000
Sept.	1,	1869	”	1,	1899	Sept.	3,	1869	320,000
Oct.	29,	”	”	1,	”	Oct.	28,	”	1,008,000
Jan.	27,	1870	”	1,	”	Jan.	22,	1870	322,000
”	8,	1872	”	1,	”	”	22,	1872	560
—————
Total									$1,970,560

Undoubtedly many of the bonds listed were disposed of at a considerable discount. Subsidy bonds to the amount of $4,922,000 had been issued by the government to the Central Pacific by October 25, 1866, and had been sold for $3,546,478. The subsidy bonds (currency sixes) were listed on the New York Stock Exchange, but there were few, if any, sales until 1868. Not a single transaction in these bonds was recorded for the year 1867. In 1869, however, the bonds went above par, the average sale price for the year being 108⅛. (United States Pacific Railway Commission, pp. 4682-83.)

[519] United States Pacific Railway Commission, p. 275, testimony Leland Stanford; Report, pp. 91-95.

[520] The Supreme Court later held that the Central Pacific and Union Pacific railroads were completed on the 6th of November, 1869, in the sense that the companies became liable to pay over 5 per cent of their net earnings from this date. (99 U. S. 402, 449 [1878].)