New-York tribune., 1871-01-05
THE PACIFIC RAILROAD BONDS.

REPORT OF TIE HOUSE COMMITTEE ON Ihf
sUBJFCT-PROyISIONs OF THE BILL RECON
MENDED FOR PAssAGE-No MONEY TO Bf
PAID TO ANY ROAD WHILE INDEBTED ~
THE GOVERNMENTAL GOVERNMENT LIN
ON RAILROAD LANDS FOR INTEREST DUE.
WASHINGTON, Jan. 4.-Reprsentative Sar-
cent today made report on the House resolution to Sc
cure indemnity to tho United states in certain cases he
stated the report had been drawn by Judge Lawrence OF
the Subcommittee.
The report gives Che history of the Pacific Railroad
and tho terms upon which was authorized 10 pe con-
strcted quoting the acts Of Congress amount OF bonds
issued ana the recent opinion Of the Attone yenepa
Of tho United States The Committee say the Union "a
cinc, Sioux City and Pacific Companies have re.
spOndcd that the law does not require them 10 pay ener
principal or interest OF the bonds until their maj
The oti companies made no answer ana none V' ~ b
intcf states 10 retain on interest account more than
half the amount OF their earnings for the transportation
of the Government mails ireights, troops, &C.
on the 9Th december, Iill was introduced in the
House of Representatives and referred 70 the Committee
on Appropriations which provides that the said bonds
prime pal paid, which may be paid. shail constitute
lien or all lands which have been may be so granted
also provides that lands SHAH only lie sOd WIN Tue
proya Of the secretary Of the Treasury ana on cond
ons yC snail secure tic proceeds 70 be applied as far
as necessary reimburse the United states FOR al sums
that have been may be advanced 70 pay tne interest
on the principal OF bonds ard to finally pt the bonds
and the United states shall not pay any money 70 any
Int Shall make a set-of. As to the ng1t Of seton pc
tween individuals it does not exist at common law
hut as il il required in equity and made avalan2 ny
Courts of Chancery and has been Introduced Jud'laiy
at law by statutes IL would seem proper ~ give INC sane
ton OF an act Of Congress, night so maneSy eqpi'@ne @
and just The bill in effect provides s1 49,. az SUM
OF which shall become DUE the United ~ es lOf lest
pid for any company. the Government sali nave ei
on the lands OF the company This Will SIMPLY slVe ne
United States practically, mortgage for tno aenI I1
from their debtors. The only purpose tntn 10 With
auds or their proceeds in the fast can pe
LIED is the pay ment Of debts cont In
te roads unle these debts be Otherwise ADEQUATE
cured These debts either 10 the holders oi hrt
mortgage bonds subsidy bonds or 70 Tie general cc,
;Ors of the cOmpan 9, with or without thc speetHc
s.curity. TO some an Of these the Ial.s
should be applied, at least 50 far as neessary % 20
tleir payment. The claim OF the 0oVerninent Is
paramount. There is why such vast interests
should be left tho exclusive decision II companies as
they are alone interested 1t 10 only the dictate or
justice that property granted conditions should be
made to execute the conditions and especially Wien no
longer required for any other purpose of grant ms
will only give To the Government performance OF con-
dtion created for its benefit regardless OF all oEerS
Tho Committee conclude by saying exist for
eonccdng than the law has already conceded The
concessions have already been grand scale and the
Government shoud the performance the obga
tons imposed by he law. This bl ls submitted Win
recommendation that it be passed.