Transcontinental transportation for the United States in
the same way has been diverted from aided to non-aided
roads by the Government, thus reducing the payment on
the debt to be made by these charges. They further state
that, ''The United States has granted very large amounts
" of aid in lands to other roads, which have become com-
*' petitors of the Union Pacific Railway Co. and the Cen-
** tral Pacific R. R. Co." The testimony presented to the
commission shows that the traflSc diverted to other lines,
which were aided in their construction by the United
States, has amounted to $37,000,000, the Central Pacific
proportion of which is about forty-six per cent, or say
$17,000,000.
The relations between the debtor company and the cred-
itor Government concerning this diverted business are
these: The contract contemplated that the debtor should
discharge its loan by the annual payment of a percentage
of the income from the mortgaged property. The creditor
then proceeds to establish competing institutions, which
greatly reduce the income of the property. This it does
to advance its interests in other ways which are of much



Embarrass-
ment to com-

ition.
Jjysses to
company by
United States
sinking fund.
36

greater importance than the collection of its debt in full.
The percentages of income are promptly paid by the
debtor ; but they are less in amount than was contem-
plated, because of the act of the creditor. Any equitable
settlement for the balance of the debt must, it is claimed
by the debtor, consider these facts, payment in full now
being impossible.
