New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-04-26

JUDGE IAwRENCE's PLAN FOR SECURING ITS RE-
PAYMENT IN FULL-Two SINKING FUNDS TO BE
EsTABIIsHED-A CALL FOR PROPOSITIONS FROM
THE RAILROAD PRESIDENTS.
lBY TELEGRAPH TO THE TRIBUSEl
WASHINGTON, April 25.-Judge Lawrence,
from the Judiciary Committee, submitted TO the House
to-day bill and report the Union Pacific Railroad
The following conclusions OF the latter; The land
grant railroads shall create two sinking unds-he first
one 70 meet the principal Of the subsidy bonds when due
end the second TO meet the interest on the subsidy
bonds which the Government has advanced or shall al
vance TO these companies. The bill by which IL Is FRO
posed TO carry these conclusions into effect fixes
specific sum which is to be paid to the Government
by each company semEannually as sinking
tnnd 10 provde for the ultimate payment OF the face OF
the subsidy bonds and it provides that these sums sha
be invested by the Government at interest The SINKING
fund 10 secure the repayment Of the interest already
partially provided for in the sections OF the law whch
permit the Government to collect from the companies
per cent Of the annual earnings and to retain olea
~ the sms due from the Government TO them for sery
ices performed The bill further provides that to cover
ANY deficiency that may arise in the second sinking fund
after the application of these two funds, the companies
shall pay to the United States such additional sums as
when added them and invested, viii meet the nerst
when II becomes due.
The theory on which this bin is based Is this: First
that the right Of the Government to amend the charter Of
the Union Pacific Railroad which is reserved 10 Congress
carries with II the power TO make such changes will
secure the application Of the assets OF the Company TO
protect the Government creditor; second that the
right 20 alter the the right 10 alter the con
tract between the Government and the Company as 70
impose liabilities upon the Company which did not pre-
vousy exist provided tho liabilities designed TO ac
eompsh the original object of the law fulfill the duty
OF the Company the Government; third, that this
power to alter affecting the individual liability OF
stockholders has received consideration from the courts
which may throw some light on this subject
The following important letter was to-day sent TO the
Presidents OF all Pacific railroads.
CHAMBER OF COMMITTEE on THE JUDICIARY,l
HOUSE or REPRESENTATIVES,,
WASHINGTON, April % 1876. }
SIR am directed by the Committee on the Judiciary
to request you 10 lay before the Committee within ten
days from this date proposition would be agreed
70 by the Company Of which you President as to the
creation Of sinking fund 10 meet the principal ana IN
terest OF the bonds advanced by the Government 10 said
Company, setting out the amount which said Company
Is willing 20 pay into such fund annually In hall
yearly instalpens for meeting the principals and what
sums payable in like to meet the interest when
oue and such details to the management OF the funds
As would be satisfactory TO the Company, but leaving
United States land heretofore granted by the Govern
nent 10 the Company, the Committee have already
determined that 1t would be nexpedient TO accede TO
such an Offer This communication is addressed to you
az this time With view OF arriving at satisfactory
arrangement N the matter possible and early
ply Is requested. have the honor, &c,
j. PROCTOR knott, Chairman.