Lewistown gazette. [volume] (Lewistown, Pa.) 1843-1944, 1861-02-14
sunhurv and Erie Railroad.

for the relief of the Sunbury and Erie
Railroad a copy of which We publish be-
low, is one of the most important. The
Clinton Democrat, published at Lock Ha-
ven, contends that this bill "does not sub
stract one dollar from the State Treasury,
now or in the future. 1t merely proposes
to make the present State mortgage sec
ond instead of first mortgage. In the
latter position it is worth nothing. because
the company cannot finish their road, and
hence can have no revenue to pay their
debts. Under the law creating that mort
gage the road is required to be sold within
the next six months if it is not paid, If
sold at present it would fall into the hands
! of spectators at nominal sum, and the
| State would lose her entire claim. But if
the legislation asked is granted, then the
company can finish their road-will imme-
diately be in receipt of large revenue
will pay the interest upon the amount due
the State, and finally the Indebtedness it
self. The way to save money to the State,
therefore, CONTINUES that paper) is to pass
the bill asked for by the managers of the
Sudbury and Erie Railroad"
We do net remember just now the ten
ure under which the State holds the first
mortgage, but if in the usual way, the road
would have to be sacrificed to whoever
would buy or the State embark in the rui-
nous policy of buying it and again mana
ging public works. Against the latter pol
icy We have unequivocal objections, and
do not entertain doubt that if the State
would undertake to finish and work it, the
taxpayers would lose more in the next five
years than the whole amount Of the mort
gage. The Commonwealth is thus placed
in an unpleasant condition. condition
under which she ought never to have been
placed after the adoption of the last con-
stitutional amendments-and the question
at issue is how best to get out of this di-
lemma. If it can be shown that this i'm
provement will develop new sources of tax
alton within a few years to an amount cor
responding with p mills on the mortgage,
no serious objection against the proposed
measure could be urged, as the State at
large would then be benefited to that ex-
tent permanently, and if the road proved
profitable, still realize the amount of her
mortgage.
The following is a copy of the bill re-
ported.
BE it enacted, DC, That the corporate name
and title Of the Sunbury and Erie Railroad
be and the same is hereby changed to that OF
he Philadelphia and Erie Railroad, by which
name and under which title the said compa
nv shall hereafter be managed and conduct
ed with the same effect as if the name there
of had not been changed
SEC 9 That said Philadelphia and Erie
Railroad Company be, and is hereby author
lied to execute and issue under its corporate
seal, FIVE thousand bonds not exceeding in
amount the aggregate sum OF II ,OUO,uOO ster
ling money of Great Britain, or S5,O00,OOO
II
Der or all of which may be issued for $4,000
each, sterling money aforesaid, and any mum
Der or all of which for $1,000 each, payable
in 20 wears from the date thereof. The said
bonds shall bear interest at the rate of six
per cent. per annum, payable semi annually,
and shall not be subject to taxation and as
security for the payment Of principal and in
terest of said bonds, the said company is here
by authorized to execute in trust, under its
corporate seal, mortgage OF the whole line
of its Railroad. finished, unfinished, or to be
finished. from Sunbury to Erie IIarbor, and
i,s appurtenances, including all locomotives
and cars Which may at any time be placed
thereon, together with all its real estate, rights
liberties, privileges and franchises-which
said mortgage shall be delivered to the trus-
tee or trustees herein named, and recorded In
the several counties in which the property
therein described, or any part thereof, may
be situate, and shall thereupon be and re-
main the first mortgage on all the property
therein described until fully satisfied, except
as to that part of the road of said company
which extends from Sunbury to Williamsp,rt,
ON which a mortgage Of 100000 now exists.
SEC. 3. That said Philadelphia and Erie
Railroad Company be, and is hereby author
lied to execute, under its corporate SEAL for
tv bonds for $780, 900 each, payable in forty
Years from the date thereof, being interest at
the rate of six per cent, from and after Jan.
lst, 1872 and secure the payment thereof
by a mortgage to be executed to the Common
wealth of the whole line of railroad finished,
unfinished. or to be finished, from Williams
port to the harbor of Erie. and all the real es-
tate rights, privileges and franchises of the
said com ,,any, which said mortgage shall be
deposited IN ,he Office of the State Treasurer,
and shall thereupon be and remain the second
mortgage on all the property therein describ-
ed until fully satisfied, and the said company
NAV deliver the said forty bonds to the Com
missioners of the Sinking Fund, i, payment
of all the 5 per cent. bonds of the Sunbury
aud Erie Railroad Company now owned by
ant