The Placer herald., 1860-02-11
Senator Gwin's Pacific Railroad Bill

Senator Gwins Pacific Railroad Bill.
The Sacramento Bee epitomizes the bill
introduced in the United States Senate
by Senator Gwin, for the construction of
a Railroad to the Pacific 1t is as follows:
Section l. Provides that the Federal Gov.
ernment shall guarantee the payment of the
interest at the rate Of five per cent per an
mum for thirty years on the bonds of such
company or companies as will undertake to
construct this road over the public domain.
2. Declares that the amount of bonds on
which this interest is to be guaranteed shall
not exceed $75,O0O,OOO for first class sin
gle track road, but these bonds shall consti-
iue a first lien on the property assets and
franchise of the company, and shall be secur-
ed by first mortgage made out and deliver
ed TO the President of the United States as
trustee, who shall hold it for the benefit of
the bondholders, and said bonds shall be
convertible into stock at the option of the
holders
8. Announces the manner in whit, h the
bonds shall be issued.
4. Requires that the road shall be com
pleted within ten years from the time of the
guarantee.
5. The road shall be frst-class Trail,
single track, with all the necessary turnouts,
sidin9s, switches, &c, but the company may
at any time elect to make double track
road, in which they are authorized to increase
the issue of first mortgage bonds to $l25.-
100000; the increase on which shall be
guaranteed by the United States in the man.
ner provided above
6. The company may locate said road
wherever they please; and shall be entitled
to the free right of way over the public do
main, and to four hundred feet in width
thereof along the entire line, together with
earth, stone, timber, ETC., 10 be used in the
road
7. Whenever the road shall be located
there shall be set apart every alternate sec
ton of the public lands for twenty miles
upon each side of the road, the proceeds Of
the sales OF which shall constitute fund
for the payment of the increase thus guaran-
tied; and should there be any surplus arising
from the sales of these alternate sections.
after paying said interest, it shall constitute
fund for the redemption Of the bonds at
rate not exceeding their par value. The re-
naming alternate sections, for ten miles on
each side of the road, are Ora ted to the
Company, as each twenty continuous mile
of the road shall be completed and put in
operation; and in case any such lands have
been disposed of previously in any other
mode, the Company shall have the right to
take the next public lands to make up lie
deficiency, progided they do not go beyond
twenty miles from the road to locate them
s. The United States Government shall,
at all times have the preference in the use of
the road for postal and military purposes;
and the Company shall carry the United
States mails upon their regular trains for a
sum not exceeding $3.50 per mile, until 9th
erwise provided by Congress.
9. All material used in the construction
of the road may be imported free of duty
TO- Eighteen months from the passage Of
the Act is allowed for completing the survey
and locating the road A board of Eng-
neers, to consist of three. shall be appointed
by the Secretary of the Interior whose duty
and the estimates of cost as presented, who
shall report thereon without delay, to the
Secretary of the Interior
IL. The provisions of this bill are inten
Ged for and shall apply only TO a railroad
across that portion of the public domain
lying without the limits of the States
-. The property franchises, and securities
of this railroad, shall be forever exempt from
taxation.