The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-07-08
unu.e Of Rnpre.en,ntirn..

Mr.. McDougall (ltep., N. H., from the
Committee on Military Affairs, reported back
the Senate bin establishing the rank OF the Pay
master-General. IL provides that the rank Of
shall be that Of Brigadler-
General. Passed.
Mr.. Mills Dem, Te1as) from the Committee
on Naval Affair, reported hill providing for the
repeal of all laws autnoriz ny the appointment
Of civil engineers In the navy, and providing
that all persons now holding such ONCE shall be
mustered out of the service. Passed
Mr.. Lawrence REP. Ohio) ,llei no. as a spe-
cial order, the bill to require the Pacific Railroad
COMPANIES to ere ,te a sinking fund to REIN
burse the United States.
Mr. Bright (Dem., reun.) moved, instead, TO 90
into Committee Of the Whole on the private cal
endaI.
MIR. Randall Dem. Pal called for the yeas
and nays ON Mr.. Lawrence's motion. saying that
II was question as to whether the House would
receive money nr pay IL out. The vote resulted
yeas %, nays 81
THE PACIFIC RAILROAD SINKING FUND BILL
Tue House therefore roceedod T. consider
the oil, and was al dressed by Mr. Lawrence In
,as' Of the PacinS r iir"ans and Of the subsidy
bonds granted by the Government. He said
that these SUBSIDY bonds were not gh.s but
loans. Inc companies we're bound TO pay the
| principal Of the bonds, and to pay the interest
! as Il accrued. The amount OF interest advanced
ed. after deduciins the payments made oy cred
itiug half toe services rendered TO tue Govern
the sp nes Seu rolps1 20 seesi A. the maturity
| of the subsidy BON q, w eDty-two Yeas hence,
the amount OF interest alone. with the interest
Oh the advances of Interest, II there were no
credit for half service. wOuid amount to the
sum OF $3i632,s,l. Deduoting the credit for
half service, there wOuli remain Of pr.nclp 4
aud Interest not reim ursed on tho lst OF Janu-
| airy, 1898 &lJO.0lO,0O The chief y Irpose OF tue
bill Was 20 REQUIRE these comp MES /" paw into
IVA mi Al Ia sur nj
money. which SHOULD pe invested Dy the Secre-
| tary OF the Treasury IN Government bonds on
tne most advantageous term. to be accumu-
lated for the benefit OF the companies until Jan.
| I. 1893, when the amount 80 accumulated should
est Of tue SUBSIDY bonds. Toere would be re-
quirvd TO liluidate tue iOterest not REIN oursed,
ana the principsi due ~ lsss a payment
the sum OF s949,.3O and by tns Union Pacific
$set.T3l. The judiciary Commit q. however,
| lad decided not to require those companies 10
| pay that sum, but "A inuch ~m ,ller sum. TIE
/ Union Pacinc was Required by the bill To pay
s,ni-anna lily 5000 Tor q period OF ten years;
! ten We r.. After tn Il PERIOD these sums were
to be- increased lie predicted int unless some
sucu me asure were ado, ted, tue hrst mort Y ,ges
! OF these comp MES would be Toreclosed. that
! the 10 Dis would oe purchsed bN lew men,
the holder. OF majority OF these ool,as' aug
| ana Interest Of the SUBSIDY oonds. Unless The
Government were secured now, all wOuid DC
| mrettievdbiy lost
Mr.. Hurd dem. Ohio, mem DER OF the Judi
| car, Cumd lttee, spoke IN oppositinn 10 tue OIL
He saic That not only were millions involved IN "
| but the honor of tue Government aud the ques
ton Of Its rights. duties, and po~eis with ,efer
ence to those with whom It had made contracts
! were involved. Tue question Involved was
| wn were the terms Of the contract Detweet
the Government aud the c"mvsnesf Nv tn'
law OF lst2 IL was provided specifically hat al Fl
| the ROADS q u been COMP ted the GOvernin sn
| should h We the power 10 receive II least D pc
| cent OF tho net earnings, As "A security Tor tn'
| Ultimate payment OF the debt. her- d oeef
dispute to tue IN ,turity 81 the Interest, an'
the Supreme Court had oecideu that tue inter
est was not payabie until the primer oal fell due
The general GOvernment, therefore, mad o,
right to ask fr the payment OF tue int, rest until
tue maturity of TIE bonds. The Government
had IN de a contract Win the comp er-ioi
the Supreme .urt had decided that IL was
contract-by which the Government was TO re
ceiva nve per cent. on the net earnings, and b,
denied the riKht ~ toe Government, IA "A cred
itor, TO increase tue rate OF interest To ne oad
at its pleasure. lie the efhre opposed toe OIL
az An HItemot TO Impair he obligation OF "A con
tract, whicn was plain, was well understood a
the time, ana was equally oinuina on the Gov
ernment and the comp .nies
AT tue close OF Mr.. A urd's speech vote wa
taken on Tecomni, ting the oil 70 the Judioiar'
Uoni,nittee, anu the motion was reJooLeu' IL
to 30.
accorded, Mr. l. .wrencs was entitled To al
hour, pat OF which he yield ID to Mr.. Hunto
I'd m. Val VINO gave history OF the tfhil,
lotions OF the Government with the T. clhc RAT
rad companies. lie said he did not tnink I'll
House should hesitate Tor a moment IN passin
Mr.. Holman Dem, Ind expressed his un
qua fled approval Of the objeoe OF the oil.
Az the close Of Mr.. HomAn's speech tie bi
was passed-yeas, lb9 nays,e
| The Speaker announced as the Committee
| Conference on the Sundrs ClNH Appropriatto
bill Messrs. Randall, Holman and Hale. Tn
House then ad 1Ourned.