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Should the receips of the Lessor exceed the sum of
One Million two hundred thousand dollars ($1200000) in any
year the excess up to the sum of Two million four hundred
thousand dollars is to be paid into the Treasury of the
Lessor.

The United State requirements for the year ending
December 31 1886 were $418271.56 and it is not likely
they will fall below that amount.

To these amounts should be added proceeds of Land
sales in 1886 sixty thousand dollars. Interest on sinking
fund investments in 1886 $463446.66 and dividends earned
on Investments in 1886 $7200.00. These sums added to the
guarantee of $1200000 are largely in excess of the sum
required for the annual interest to the United States on its
Bonds and is not likely in any event to be lessened.
Any one who has studied the wonderful grown of California
during the last year and its promise for the future will
recognize the truth of this.

But should the income fall off below this amount of
$1671340.80 VIZ - the annual interest on the United States
bonds then the Railroad Company have a reserve fund to fall
back on of $28813607.37 of undived profits which have
gone into "Construction of Road" Payments to sinking fund"
to the "United Sattes" dc. and "income Bonds" out of this
Surplus could be issued and sold to meet any deficiency.

Any claim that this sum which represents the amount of
undivided earnings on the whole line can de separated and
apportioned between the aided and non-aided portions of the
road is absurd. The very fact that certain portions of the

Should the receips of the Lessor exceed the sum of
One Million two hundred thousand dollars ($1200000) in any
year the excess up to the sum of Two million four hundred
thousand dollars is to be paid into the Treasury of the
Lessor.

The United State requirements for the year ending
December 31 1886 were $418271.56 and it is not likely
they will fall below that amount.

To these amounts should be added proceeds of Land
sales in 1886 sixty thousand dollars. Interest on sinking
fund investments in 1886 $463446.66 and dividends earned
on Investments in 1886 $7200.00. These sums added to the
guarantee of $1200000 are largely in excess of the sum
required for the annual interest to the United States on its
Bonds and is not likely in any event to be lessened.
Any one who has studied the wonderful grown of California
during the last year and its promise for the future will
recognize the truth of this.

But should the income fall off below this amount of
$1671340.80 VIZ - the annual interest on the United States
bonds then the Railroad Company have a reserve fund to fall
back on of $28813607.37 of undived profits which have
gone into "Construction of Road" Payments to sinking fund"
to the "United Sattes" dc. and "income Bonds" out of this
Surplus could be issued and sold to meet any deficiency.

Any claim that this sum which represents the amount of
undivided earnings on the whole line can de separated and
apportioned between the aided and non-aided portions of the
road is absurd. The very fact that certain portions of the