The New York herald., 1878-03-05
PROTECTION OF GOVERNMENT INTERESTS.
A Percentage Of Earnings and Specified
Sum To Be Paid Each Year.
PROVISION FOR PARAMOUNT LIENS
Measures for the Enforcement
Of the Law.

the SENATE judiciary Committee to-day, with recon.
incubation Tor its psssage:-
Be II enacted, &C. That The net earnings mentioned
In tho act OF lS6! OF said Pacific Railroad com.
panies respectively shall be asccrtained by
IRON the gross amount OF their ngs respectively
inc necessary expenses actually paid w,thin tho year
III operating The same and keeping tho In state
of repair, and also tho eum paid ectively
within the year In discharge OF interest their arst
lion o! the United States and excluding from con.
s.',aran;a sas,a,,om al sums owing or pad by said
o'ner portion OF their Indebtedness; and tho
foregoing provision shnii be n,e and taken as an
anendmcnt OF SAID act OF 1864 we'll oi said act
ol 1867 THIS section shall take effect tho Both
OF June next, aud be applicable To all computations
OF net earnings therealter but It shall not aHec any
right ot The uued States or OF ehcr OF said railroad
companies, existing prior thereto
SIC 2-ibAt the whole amount OF compensation
winch may from time 10 time DO duo to said several
railroad companies respectively Tor services rendered
for the government shall be retained by The United
States half thereof TO be presently applied 10 tho
qu'oatl0n OF the interest paid anu 10 paid by tho
United States upon the issued by IL as afore-
SAID 10 each OF said corporations ssveruy, and tho
DINER nall thereof To be ur' cd into tho SINKING unu
hereinafter provided for the uses therein mentioned
THE SINKING
SEc' 3.-That there sh III DO established In tho
treasury oil tue United States IA sinking fund which
shall be invested by tho Secretary Treasury IN
bonds OF tho Unlted States and The sem uai IN
come thereof snail be in Ike manner from limo
10 time invested, ana tho same snail accumu-
late and be disposed OF as hereinafter mentioned.
Aud in making such Investments tho Secretary shall
prefer the five per bonds OF the United States
unless, Tor good reasons appearing him and h:ch
he shall report to Congress, he shall ut any time
deem it advisable 10 invest In other bonds OF tho
United States.
SEC 4rhat there shall DO carried to the credit OF
tho SAID und on the 1st day OF February each year
the one-hai OF the compensation services herein
before nnmod rendered for the government by said
Central racno Railroad Company not applied In
thereto tho said company shall on said day
in each yoar pay into tho Treasury to tho
ST. 200 900, much thereof as shall be necessary
TO make the 6vc per Gent Of the net earnings OF It's
SAID road payable tho United States under said act
o 1862 and the whole earned by II as com
ton for services r.nuered 10 the Uniteu States
together with the sum by his section required be
paid, an amount III the aggregate to twenty live per
cent OF the whole net earnings OF said railroad CON-
pany, ascertancd aud dcnnod as here,nb before pro.
vided, tor the year ending tho 3lst day OF Decom
Der next preceding.
SEC h--That whenever II shall be made satisfao.
sory to appear to the Secretary OF tho Treasury ny
either OF said companies that seventy nyc per
Of It's net earnings as hcrelnbcfore defined,
10 pay interest tor such year upon tho
obligations oi such company IN respect
oi which obligations there may exist lien paramount
10 that OF tho United States aud that such interest
has been paid out o such arnngs saiu Secretary
~ ,orsby authorized and mado his duty TO remit
ies suph current year SO much OF the twenty-five psr
cont 81 net earnings required be paid With the
sinking fund As aforesaid, may have been thus ap-
plied and used IN tho OF as aforesaid
SEC. 6-ThN no dividend shall bo voted, Lnado or
paid for or to any stockh holder or stockholders in
when said company shall bc In default IN respect or
payment, either oi tnc sums required as aioretad 10
DC PAID into SAID sinking iund or IN respect OF tho
payment OF said i've per ccntum OF the net oar nas
or IN respect OF interest upon any dobt lien
which, or OF the debt which it may
accrue, is paramount to that OF the United States:
and any oiicer or person who shall vote, DECLARE
make or pay, and any stockhoder oil any oil said com
panIes Who shall receive my such divide nd contrary
TO tho provisions OF this act shall be liable 10 The
United states Tor tho amount thereof. which, when
recovered, shall be paid into SAID sinking fund and
ava NOR rlrt..
knowingly vote, declare, make or pay any such div
dond contrary 10 the provisions OF this act shall be
deemed guilty oil o mtSdemeanOr, and on conviction
thereof, shall be punished by u hne not exceeding
$4,000 and by Imprisonment not exceeding ono year.
USES or THE SINKING FUND.
SIC THAT The said sinking fund SO established
ana accumulated shall at the maturity OF said bonds
SO respectively issued BY tho United States be applied
TO the payment and Satisfaction thereof according 10
the Interest and proportion Of said com panIcs
In said iund and o! all interest paid by the Unncd
provisions oil tho next section.
SEc ST. hat the sinking fund 80 established aud
accumulated SHALL according to the interest and pro-
portion vi sAId companies respectively therein DO
held for the protection, security and benefit Of tho
lawful and just holders OF any mortgage lien dcbs
10 the rights Of the United States for tho claims OF
other creditors, II ATTY, lawfully cbargoable upon tho
iunds SO required 10 BIZ paid into sala sinking fund
according 20 their respective lawful proritiss as
well as for the United States, according
TO the principles Of equity, TO the end that
all persons having any claim upon said sinking fund
may be entitled thereto In duo 0rdor but the provi
siOns OF this section shall operate be held to
impair any existing legal rights except In the man
nor in this act provided, OF my mortgage, lien or
other creditor OF any OF said companies respectively
nor to excuse any Of sad companies respectively
debts " any creditor except the United States.
SEC 9-That all sums due to tho United States from
any OF SAID companies respectively, whether payable
presently or NOT aud all sums required TO DO paid
the United States or into the Treasury, into said
s,.k'ng iuna undor this act or under the
are hereby declared 10 bo a lion upon ali
the property estate, rights ana franchises
OF every description, granted or conveyed by the
United states TO any OF said companies respectively
jointly and also upon all the estate and properly
rea personal anu mixed, assets and income OF tho
sad several railroad companies respectively, IRON
Whatever source derived subject TO any lawfully
prior aud paramount mortgage lien or claim thereon.
THE LIENS OF ENFORCEMENT.
SIC. 10.-That IT. Is hereby made the duty OF tho
Attorney General oil the United States to enforce by
companies respectively or jointly, or against either
Ol them and others, all the rights OF the UuItec
States under this act and under tho acts herenbeoe
mentioned, and under any other act oil Con-
gress or right OF tho United States, and
In any SUIT or proceeding already commenced or
tDat may be hereafter commenced, either a,ono or
with other parties IN respect Uf maitors arising
under this act, under acts rights heroinb bo-
lore mentioned or referred to- snail be the duty of
the Court 10 determine thc very right OF tho mater
without rcgard to matters OF FORM oinder OF parties
mutiiariousnsss or other matters not aiiecling tho
substantial rights and duties arising out Of mat
tcrs and acts hereinDeorc stated and referred to.
sEc. ll-That u either OF said railroad companies
hnali la 70 perform all ana singular tho requirements
oil THIS act and oil the acts herenbefore mentioned
and Of any other ACT relating TO said company bo
py II performed ior the period OF SIX months next
alter such performances may be due such failure hal
operate n forfeiture Of all the rights, privileges.
grants franchises derived or obtained Dy II from
The United Statcs. and shall DO tDe duty OF tho Al.
torney Geucral to cause such forfeiture to be juai
cially enforced.
SEC 12-That nothing Ia this act shall DO con.
strued or taken IN anywiso TO affect impair tho
right OF Congress Al any time hereafter iorihcr 10
alter, amend or repeal the said acts hcrenosioro
amendments orSepca as, in tho OPINION Of Congress
justice and the public welfare may require. And
nothing herein contained shall DO hold to deny OK
ciude OF Impair any rght or remedy In the premises
now existing IN tavor oi the United States
SEC. I3-Inat each anu every OF the provisions In
this act contained shall sevcray and respectively be
deemed taken and held as IN alteration and amend.
monI OF SAID act OF 1862 and oi said OF 1904
spcctivcIy, and oi both said acts