The Pulaski citizen. [volume] (Pulaski, Tenn.) 1866-current, 1877-07-05

OF the Texas Pacific railroad
measure the Knoxville Tribune and
Age says in reply to sundry misrep-
reservations:
If we understand the matter
Alright no special subsidy is de-
manded. At any rate, the general
Government is not likely to become
a loser by fostering this enterprise,
as the road WI give substantial re-
turns for its endorsement of bonds
to limited and safe extent.
No subsidy is demanded, as the
term was understood IN connection
with the Pacific railroads in the
North. The Government is asked
to guarantee the payment of 8 per
cent. interest-not the principal
on 500, 1895, 900 of construction and
equipment bonds, being total an
nual interest of SO, ,499,75O. This is
the maximum of the Governments
liability, and constitutes the so
called subsidy"
Section of Texas Pacific bill
provides that the acceptance of this
act by the Company shall ips % .factO
constitute first lien upon the re
spective lines of road and telegraph,
the building of which is provided
for in the Act, and upon the rolling
stock, depot grounds, shops, fixtures
and property of every kind apper-
tanning thereto, as well as upon the
lands granted by the United States
ard by the States in aid thereof,
and for the execution of a first
mortgage on said property to Sc
cure the interest as well as a sink
ing fund. 1t also provides, as an
additional security, that TIE re-
spective companies shall pay into
the Treasury Of the United States,
as the interest coupons on said
bonds shall mature, and,a the in
stallnents for the sinking fund be
come due and payable
First-The proceeds of sales of
lands.
Secondly-The gross earnings on
Government business.
Thirdly-A sufficient amount
from the earnings of the roads to
make up such interest payment TO
be provided for, and also to provide
sinking fund, to commence with
the year 1886, of one per centum
per annum in gold coin, said one
per cent. per annum to be paid un
til all bonds are extinguished.
That the sinking fund shall be in
vested in the bonds of the company,
if obtainable ut or below par as may
be agreed upon: otherwise in Uni
ted States bonds at current market
value.
That all guaranteed bonds fur
nished on account Of the sinking
fund shall be cancelled, but the com
pany issuing them shall continue TO
pay interest thereon until the sink
ing fund is sufficient to take up all
the bonds of said company.
This security will amount to a to-
tai State and national land grant
of, say, 10000, 900 acres; 2,3O5 miles
of railroad lines; all the rolling
stock and other property appertain-
ing to the companies; the annual
earnings of the roads and telegraph
lines from both the Government and
private business; bonds of the
companies, at the rate of $4,000 per
mile, remaining in the Treasury of
the United States, say II, 100000.
The annual interest can be paid
should the net earnings Of the
1905 miles reach 81, 800 per mile.
The net earnings of the portion of
the road already constructed ex-
ceeded two thousand dollars a mile
for the year ending June, 1876.
The latest reports of the Union Pa
cific and Central Pacific Railroad
Companies show an average net
earning per mile per annum oi
of s7,3S9, nearly five times the
amount necessary to pay the inter
est upon the bonds proposed to be
guaranteed by the bill.-Nsnphis
AuaLdzehe.