The Portland daily press., 1874-05-12
WASHINGTON.
The Northern Pacific Job.
LII TO BE WATCHED.

| WA INGToN, May 1.-THE bill to aid th'
constr uction of the Northern Pacific Railroad
introduced in the Senate by MIR. Ramsey, au
thorizes the company to issue five per cent
| thirty year gold bonds to the extent of $50, oO(
mile for the length of the road built and to bt
built those bonds to be delivered to the Score
| tary of the Treasury and to remain in his pos
| session. Whenever twenty additional miles OF
| road and telegraph line are built and equipped
| and certified to by the government commits
| sioners as being complete and ready for occupa
| ton, the Secretary of the Treasury shall IN
| the name of the United States make this in
dorsement on the five per cent. bonds: "Ihe
United States of America hereby guarantee TO
| the holders of this bond the payment of inter
| est thereon in gold coin at the rate of i've per
centum per annum semi-annually; and to re-
ceive payment of the principal of this bond at
maturity. The Northern Pacific Railroad Go.
| has delivered to the Secretary of the Treasury
as collateral security, Dor d OF like amount
hearing interest at Z $40 per centum per an
mum secured by the first mortgage of said COM
pany on its entire road; the franchise lands ana
other property to be available to the holder
| thereof when the prior lieu of the government
of the United States shall have been extIn-
| guished by the payment of said company of in
terest on all the bonds SO guaranteed. The
Secretary of the Treasury shall pay out these
guaranteed five per cent. bonds to the railroad
company as follows: Whenever twenty or
more continuous miles of road are constructed,
equipped anu reduy IOF OpeTdtiOu, @tU,UUO VI
bonds per mile are to be handed over to the
company, and at the same time 600 worth
in amount per mile are to be put away IN the
Treasury as security to the government for the
prompt payment by the company OF the guar
anteed interest, As further security to the
government simultaneously with the delivery
to the company of the SAC, 900 per mile of five
per cent. guaranteed bonds the company shall
deliver the Secretary of the Treasury its $40
first mortgage bonds in the proportion OF $780,
sc tI,o lot 70, 0nf hQ fnrp1 Cor
further security and for additional means to
provide for the guaranteed interest the Railroad
company turned over to the government its en-
tire land grant acquired and TO be administered
by government and by it sold in limited guam
titles to actual settlers only at $50 an acre.
subject however, to vested rights and equities
of the third parties. For further security twice
every year, and fifteen days before the guaran-
teed interest shall fall due. the railroad com
pany shall. pay into the United States Treasury
the net earnings of the road for the preceding
six months and any sum besides necessary to
make up the interest. For further security of
the sales of the companies lands and the earn
ings of its road prove insufficient to provide for
the interest on guaranteed bonds, the Secretary
of the Treasury may sell enough of the $40 coo
per mile retained by him to meet the interest.
After that if there sial. remain surplus in
the Treasury from land sales and net earnings
the Secretary shall pay il over to the company
till the end of 1888 thereafter such surplus shall
be paid into the company sinking fund to ex
tinguish the five per cent Holders of Northern
Pacific 1905 issued prior to this act can have
them exchanged at the Treasury dollar for dol
lar for the fives with the interest guaranteed
from and after July LIST, 1878, if the exchange
be made before that day.
If made after that day they get the guaran-
teed interest from and including the January
1st or July LIST next following the exchange.
The 1905 thus exchanged are retained by the
government as additional security for its guar
antees of the SIS. To secure payment of prin-
cpal of the guaranteed SIS the government will
hold all the company's 7.30 bonds deposited in
the treasury when the SIS are issued for con-
Struction and that get there on exchanges: also
a sinking fnnd to be established and commence
January 1889, of one per cent. per annum of
all the Dor DIS issued under this act, to which
shall be added the over pusses in the treasury
arising from sales of the company's lands and
the deposit of the net earnings. The sinking
fund is to buy the guaranteed SIS They are to
be cancelled in treasury as bought, but the rail-
road company is to continue to lay interest up
on them the same as If they were not Cancelled
The act extendi the same for construction.
By December 31st, 1875, and every year there
litter 100 miles shall be completed, of which at
least forty shall be east of the Rocky Noun
tains, and the whole road be completed by July
4th, 1884 The 7.30s remain the first lien on
the road and the rights of their holders remain
untouched. The act restores about 100000
disposed of to actual settlers at the price now
limited by law for adjoining public lands
The act further provides that Congress may fix
and determine the fares and tolls and charges
to be paid for transportation of persons or prop
erty on this railroad or any part of it.