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Central Pacific Debt

Central Pacific Debt image
Parent Issue
Day
28
Month
February
Year
1896
Copyright
Public Domain
OCR Text

Washington, Feb. 27.- General Hubbard, representing the Central Paoiflo railroad, was again before the house Central Paoiflo railroad cormnittee. He outlined at length tho plan he proposes for the settloment of the debt of that road. His plan is to use the sinking fund, amounting to $6,000,000 for the Central and $20,000,000 for both roads, to meet the flrst of the bonds, some of whlch are already overdue; to give tho government flfty-year 2 par cent. inoome bonds for the accriied interest paid by the government, and to fund tho government bonds as they becouie due iuto flrsb mortgage i)4 per cents. Tha governmeut bonds bear 6 per cent. interest. This proposition involvas an extensión of tho flrst mortgage indebtednoss as the government bonds are taken up. The questlon oi the legality of the extensión of the ürst mortgage indebtedness should it prejudioe equity in the third morfgage bonds (amounting to $16,000,000) was raised, but General Hubbard affirmed that tnis could be done.

Article

Subjects
Ann Arbor Argus
Old News