Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1874-12-06

Paclhs railway company has been here
t0fore authorized to construct, furnish,
maintain and enjoy a continuous rail-
road and telegraph line, with the ap-
purteuanees, from a point at or near
Marshall, in the State Of Texas, to
Ships channel ia the bay of San Die
go, Ia the State Of California, along
or near the thirty second parallel OF
latitude; and the Atlantic and Pacific
railroad company has been authorized
to construct furnish, maintain and en-
JOY continuous railroad and telegraph
line with the appurtenanees, from the
town 81 Springfield in the State OF Mis-
souri,, along or near the thirty-dfth par
aliei OF latitude, by the most practicable
route to the Pacific. The proposition
now made Is to connect the roads OF
these two companies, and instead Of
constructing the Atlantic and Pacific
railroad "along or near the thirty-fifth
parallel Of latitude to extend that road
! from its present southern terminus SO as
to connect with that Of the Texas and
Pacific railway company "at some COM
mon point in Texas, thereby securing
the completion of one southern line
| from Huch point OF connection through
TO the Pacific coast; and by such union
OF interest, restoring to the government
| about thirty million acres Of land here
| tofore granted to said companies In
order to assist in the construction of
these two railroads, the governments |
both OF the United States and Texas
have made large grants Of land, |
those from the State OF Texas alone
exceeding fourteen millions of acres. 1t |
IS proposed to return to the general gov
eminent the thirty millions of acres |
granted Ivy it to the Atlantic and Pacific |
railroad company, and, in lieu, to con- |
struet the proposed joint line, and mort |
gage sill the balance of grants to the |
government as security for the CONFESS
sion hereinafter stated; whenever twen- |
" or more consecutive lines OF road and /
telegraph lines have been constructed by |
either OF the two companies, and are /
ready for service, the President Of the |
United States shall send a commission
er TO examine the same, and II it shall |
appear to the President that twenty |
miles Or more Of said railroad and tele-
graph have been constructed and equip
ped for service, the secretary Of the |
treasury shall fndorse for and in the
name OF the United States, s guarantee
OF interest on the first mortgage bonds,
TO be Issued by such company, the rate
OF such interest to be five per cent. per
snnunl, payable in gold. To secure the
principal of these bonds, and the
payment to the United States of
the interest as it shall mature, the Texas
ana Pacific railway company, and the
Atlantic and Pacific railroad company.
each ere to execute first mortgage on
their railway, with its equipmets, fran
ehlses, earnings, and property of every
kind, including all lands granted by the
United States; and, on said mortgage.
provision is made for a sinking fund, toI
be paid into the treasury of the United
States, commencing with the wear 1850.
and continuing until the year 1900, Of an
amount equal to one per cent. Der an
mum IN gold coin, and thereafter two Der
cent. per annum in gold coin, on the
whole amount of bonds issued under the
mortgage, until the bonds are all re-
deemed, or until fund shall be on de-
poslt in the treasury Of the United States
sufficient, with its accretiOns, to redeem
them at maturity; and this fund is to be
invested annually by the secretary of
the treasury in such guaranteed bonds,
30 long as they can be purchased st
par II gold, when they are to be sold,
ana guaranteed bonds purchased
with the proceeds Of such sales. The
amount OF bonds SO issued and guar
anteed shall not exceed forty thousand
dollars per mile Of r3ad constructed and -,
equipped by each company. The secre-
-ary Of the treasury shall only deliver to
the companies for road so constructed ..
and equipped, thirty thousand dollars :
per mile in the plain or open country,
and forty thousand dollars per mile in :
he rough or mountainous country,
making an average Of thirty-fve thou
.and dollars per mile On the whole line.
he remaining five thousand dollars per
nile OF bonds, or say, in round num- .
)ers, about ten million dollars Of bonds Q
Q be retained in the treasury Of the s
: nlte1 States belonging to the cOmpa- j
~. In order to ensure with entire GER
alntY and punctuRlity the payment into q
he treasury Of the United States Of q C
um sufficient to meet the interest and c
linking fund on the bonds, so guarsu- O
eed by the government Of the United o
states, the two companies propose, in Q
edition to the mortgage upon all their I!
'rOperty and franchises, the following s.
famed additional securities: The net e
ash proceeds OF all lands granted by 4
he United States and the net earn Z
ng5 Of both companies, OF so much L
8 may be required to provide for q
- interest and sinking fund: | u
lso the whole amount that shall be re- g
eivedi OF that shall be due from the q
.overnment of the United States, for d
he transportation Of troops and supplies, q
nd for its postal ami telegraph service y
nd o-her government traffic; and, in g.
ase the net proceeds of sale of lands p
nd the government transportation, teIe- n
raph and postal service, and the net q
arnings OF the railroad shall not, dur y,
% the construction of the lines OF d
bad, equal the amount to be deposited o.
u interest by either company every six te
lonths, as their coupons mature, the on
scretary Of the treasury is authorized "
sell sufficient number of the COM re
2nies' bonds retained in the treasury of 10
le United States, and to use the pro- pl
seds 10 make up any deficiency at the CT
Hpense Of the company. Sc
-. so