, 1876-05-21
Conflicting Testimony in the New
Orleans Investigation.
4 Proposition to lmptaeh Jake Thompson:
if hlknap Is Convicted.
Fitzhugh Is Formally Declared
to Be an Improper
Person.
And Therefore His Office Will Be
Abolished to Get Rid
of Him.



WASHINGTON, D. c., May 2o>-The Judiciay
Committee this morning agreed to the Law
renee Union Pacific bill, with several very i'm
! portant amendments, The following is an ab
! stract Of the bill Us it was adopted by the Com
'nittce: 1t Is amrndatory Of the act Of Jul
| l, 1852. 1t provides that the Secretary of tn
Treasury shall at all times withhold payment o
| money due from the United States to any land
| grant railroad, whether such money so due b.
| reduced to judgment OF not, to the amount O.
any or all claims due from such com
! panies to the United States. In any
suit. Of such company against the
United States the United States may plead as
set-of any claim against such road, or may
| make such claims subjects Of separate action.
The companies shall be required to pay pei
cent on all claims due the Government if pay
mont be unreasonably withheld
THE sNK1N9sFuED SECTION
provides that a sinking, fund for the e1tinguish-
lnent Of the Indebtedness Of the road due to
the Government shall be s750, 600 d year for the
first ten years, and 81 100000 year thereafter
till the entire debt and interest be
pf pffd5 5e ahess es1 nc sums eszn aFf % sSa 1Ss
Government freight account, which are to be
accredited to the Company on account Of inter-
est due the United States. The sinking fund
Of the Central Pacific Railroad Company shall
~ A1aae pfopoftloua1y ~ tneT lnQcDte4ness TO
the Government. On this basis the Secretary
Of the Treasury shall invest the money on &C
count Of the sinking fund in United States
bonds, and reiivest tie same, with the interest
and profits, and at the maturity OF the
at not s1eA es 81 aa the bep R0ny r 0 q bonds f
the credit Of; the. sinking fund, and
nothing shall require the per centum net
earnings and one-llalf of the compensation for
services rendered for the Government to be SO
invested. Non-paymeut BY the companies is
A GROUND OF SUIT.
It is made the duty of the Attorney General
to institute such suits. All such suits shall
have precedence in the courts Such companies
are prohibited paying dividends from earnings,
te%psny e5n mae e adebsa sP to . sqse qs
United States on any claim under this
act Every person receiving such dividends
shall be liable to refund the same to the
United States officers, or agents OF the COM
nany making saeh payments shall be liable
officer or agent shall ba interested in contracts
with the company. The penalty for this is
Slo,o00 and one years imprisonment. ANY
remedy provided by this act shall not interfere
WITH the remedies under. previous acts The
are not to be affected BY this act Nothing in
the bill is to be deemed q waiver Of the power
and right OF Congress at any time to amend or
repeal any act relating to such companies.
SotAluE sUd1l uuflaaI a11} ElEuE GAlSll1T Of law
under the act Of July 25, 1861
The Committee received
10 FORMAL PROPOSITIONS FROM THE ROADS |
n answer to the letter addressed to them. but |
he general Views OF the companies are known |
md the Committee is in hopes that the terms
i the bill will be accepted. Its manifestly for
he advantage OF the companies; as the man
gers will show, that some provision should be !
nade to pay the accumulated debt The roads
re in condition, undoubtedly, to begin the
the bill is accepted by the companies with
ut recourse to Judicial proceedings it Will
Undoubtedly strengthen the stocks Of all the
ubsidy roads. The Committee think that they
ave drawn bill which would stand the test Of
1dicia1 examination, and il so Of course its
assage would force the road into compliance
ith its provisions. There is . strong desire to
7otd any conflict between the Government and
&c companies. The amount of interest already
iyanccd By the Government on the Pacific Rail-
'ad bonds is S24,0 ,000, ,0o0. The principal Of the
'nds on which this interest has been paid is |
,arly s65, 100000.