New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-05-12
NORTHERN PACIFIC RAILROAD.
SENATOR RAMsEY's BILL TO AID THE CONSTRUCTION
OF IHB ROAD-CONDITIoNs OF PROPOSED
GOVERNMENT GUARANTEE OF THE BONDS



OF THE ROAD-CONDIIIoNs OF A PROPOSED
GOVERNMENT GUARANTEE OF THE BONDS.
GENERAL PRES DIsPATcH.l
WASHINGTON, May 1.-THE bill to aid the
construction of the Northern Pacific Railroad, intro
duced in the Senate to-day by Mr. Ramsey, authorizes
the Company to issue five per cent thrtyyear gold
bonds the extent OF $4,000 milo for the length Of
the road built and to be built These bonds 10 be
delivered the Secretary OF the Treasury and to re-
main in his possession Whenever 20 additional miles Of
road and telegraph line built and equipped, and GER
ti1ed 10 by the Government Commissioner as being
complete and ready for occupation the Secretary OF the
Treasury shall In the OF the United States, make
this indOrsement on tho five per cent bonds: "The
United States Of America hereby guarantee to the
holder of this bond the payment OF the interest thereon
in gold CON- at the rate Of five per centum per
semiannualiy; namely the first day OF January and
the first day Of July IN each year and to secure the
payment the principal OF this bond at maturity The
Northern Pacific Railroad Company has delivered to
the Secretary Of the Treasury collateral security
bond OF like amount, bearing interest at seven and
threeenths per cenun per annum secured by the first
mortgage Of the said COMPANY the entire road fran
chlse lands and other property TO be available the
holder thereof"
When the prior lien OF the Government Of the United
States shall have been eYtnguished by the payment by
said Company of the interest all the bonds guaran
teed the Secretary Of the Treasury shall pay these
guaranteed five per cent bonds to the Railroad Com
pany follows Whenever 20 or more continuous miles
OF road constructed equipped and ready for opera
tOD 1000 OF bonds per mile to be handed to
the Company, and at the same time t0OO0 worth In
amount per mile 10 be put away 10 the Treasury
security TO the Government for the prompt payment
by the Company OF the guaranteed interest As further
security to the Government simultaneously with the
delivery TO the Company OF the $40 per mile
five per cent guaranteed, the Company shall deliver
the Secretary OF the Tr5s-;y US sloths hrst mort
gage bonds in the proportion OF $1,000 OF the lat
ter to 10000 of the former. For further security
and for additional means 10 provide for the guaranteed
interest the Railroad Company shall turn over To- the
Government Its entire land grant, acquired and TO be
acquired TO he administered by the Government aud by
1t sold in limited quantities TO actual settlers only at q so
an acre sue Sd h0Teyer to tine Vested rights and
every year. and 10 days before the Interest
shall fall due, the kairOad Company shall pay
United States Treasury the earnings road for
the preceding six months and besides necessary
10 mako the interest For further security II the sales
Of the Company lands aud the earnings Of Its road
prove insufficient 10 provide for the interest the
sell enough Of the 600 mile retained by him
the interest After that, II there shall remain surplus
in the Treasury arising from land sales
the ssce!ary shall gay oyer to the COMPANY III the
the Company sinking fund, 10 extngnsh the five per
| cent.
prior TO this act have them exchanged AT the Tea-
sury dollar dollar for the fves the interest
guaranteed from and after July 1873 If the he
made before that day II made after that day they get
me guaranteed interest from and including Jan.
July next following the exchange. The thrties
thus exchanged retained by the Government as ad-
dlonal security for It's guarantee OF the ves To
the payment OF the principal Of the guaranteed
| Government will hold ali the Conpany's seyen.tlrty
bonds deposited IN the Treasury the arc s-
sued for construction and that get there
also sinking fund To be established commence Jan
CT per cent all issued uuder
act 10 which shall be added surpluses IN the
Treasury arising from the sales OF the Company lands
and the deposit Of lis net earnings, The sinking fund il
10 buy up guaranteed ycs they To be capcc al
In the Treasury bought, but the Railroad Company A.
10 continue 10 pay interest on them tho same AZ II they
| were not Cancelled.
! Tue act extends the time for the construction by
December H. 1876, thereafter 100 miles
additional shall be pletod, of wblcH least 40 lal
be ucst Rocky Mountains, aud the whole 10 al
finished Ivy JuIy 1864. The scve-.niries remain the
nrst lien tho road, aud tho rights OF their holders
remain untouched TAo act restores about J0JO0c0J
acres of public lands To tho Government 10 he GapOre
oil 10 actual settlers at the pTIcc Limited ~
adjoining pubic lands. Ihc ACT iGI.ncr provides that