The New York herald., 1877-02-01
PACIFIC RAILROAD INDEBTEDNESS.
DEBATE IN THE SENATE ON THE BILL TO EsTAB-
LlsH SINKING FUND.

DEBATE IN THE SENATE ON THE BILL TO EsrAB-
LlsH SINKING FUND.
WASHINGTON, Jan. 81, 1877
Tho Senate to-day resumed the consideration OF the
unfinished business, being the bill to amend the Pacific
Railroad acts as to create sinking fund for the
liquidation Of the Indebtedness due the government by
the Pacific Railroad companies.
SPEECH MR. THURMAN.
Mr. Thurman IN explanation OF his remarks OF yes.
terday said he did not then mean TO say that the
companies pay into the Treasury twenty-five per
cent OF their ne: earnings. Under the law as II
stood each company must pay five per cent OF its net
earnings, to bo applied immediately to the pay
ment Of the interest on the bonds loaned
to tho companies by the government. The
present law also authorized the government retain
onc.half OF tho amount earned by the companies Tor
transporting mails. troops, &c, for the government.
The bill before the senate did not alter the pres
ent law in the slightest degree. II preserved these
sons OF the existing law ana required the CON-
pancs IN addition 10 the items mentioned to pay INTO
the treasury such further sum as to make the whole
aggregate twenty five per cent o their net earnings
The nount of the earnings TO be paid into the
Treasury make up the twenty-five per cent proba-
bly, would exceed seventeen per cent. as the five
per cent aud the transportation account would make
up the other eight per cent.
SPEECH WEST.
Mr. WEST, (rep) oil La, sad he approached the con-
sideration OF the subject with both embarrassment
and anxiety. He anxious that the legislation
should maintain tue interests OI the government
the time have due regard Tor the rights OF
the companies. He lct embarrassed, because this
the first occasion where two committees OF the
senate had been intrustcd with the same subject and
had reported bills dlametiic opposite on funda-
mental principle. He argued that much money
would the credit OF these companies for the
hquiation Of their Indebtedness under the bill re-
ported by the Railroad Committee under
the bill reported by tho Judiciary Committee
lie would ask the attention OF the senate to the
authorizes TO which he would refer than TO any IDEAS
OF hs own. II ho conrovcrted the position taken by
The judiciary Committee he found himself sustained
by previous report OF that committee to the Senate
and also by decision Of the highest tribunal In tho
land-the supreme Court OF the United States. to
which Congress now looked In the time OF trial lie
argued that the railroad companies would DO CON-
pollcd TO resist the bill OF the judiciary Committee II
II became law. He quoted from the opinions OF the
supreme Court and argued that tho government did
enter into partner ship with these railroad companies
build the roads Tor the benefit of the United states
The Judiciary Commte assumed that those roads
were but Tor the benefit OF the railroad companies;
but hey built just much for tho benefit OF the
United States TO meet the necessities OF pubic SER
wee. Before these roads built the expense ON
account OF transporting Indian suprlics mats and
IS, 900. 0U0 per annum. Now II was not per
cent OF that sum-
Hc then referred to the bill reported by the Judiciary
Committee and SAID that II Congress could take
y-hvc per cent OF the net earnings Of the roads II
could take fifty per cent or IL could take all.
In conclusion, he hoped bill would be passed which