New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-03-21

road Committee goes into the Treasury Of the United
and application precisely as It sees 1T. no one
ess hand al this EFFORT ali on the part Cone
gress embodied I'm the bill from the Judiciary Com.
Is III Establishing sinking fund in the Tess
ury of the United States to be cared for by the United
United States to be responsible not for the benefit Of
the Government hut for the benefit o. inc fortunate hold
whom not legis!ating, In respect TO whom
not Ssa upon os 70 for no syor So sre
no rights who receiving their interest regularly aud
wa o eavs the nsn @
security which they can enforce according to their
own will whenever q default occurs.
by the provisions OF the bill OF the Judiciary Commit
tee tins sum Of money, including the very amounts still
belong to the Government and else free from the
first mortgage Of tine bondi0lders Is released by the
cage bondhoders and any other holders Of or
other claims against the companies which may be prior
equtaby in point Of lien to the security OF the Govern
Mr.. Tburman--will my friend state that propoa.
ton again; for II understand him. NC Is cer'anlyms
Mt. Matthews-My statement, as I understand IT,
ia this thar the bill the Judiciary Committee instead
OF collecting a sinking fund for the sole and exclusive
use OF the Government Of the United States In order
exngush the claim which the United States shall have
against these railroad companies at the maturity OF its
bonds carefully collects sinking fund IN respect To
which, at that time, the United States VIII have no lien
whatever except sujecI to the prior rights OF the t
mortgage bondholders.
misunderstood him-to say that we put money INTO the
sinking iund. to which the United States has right
der the existing law ,,,
Mr. Matthews-so understand the bill
Mr.. Tharman-Inen my COLLEAGUE Is Is entirely mil.
TO which the Government has right under the existing
law not one dollar s.,
league whether the sinking fund created by his bill
consist first, OF the amount that would Other
due the Government TO the RAILROAD CON-
panies account OF public transportation; second
what would be due from the companies TO the Soyen
man rtuHo fha axig ID
cent the net earnings, to which IL ~ De added In the
one case $s50O00 in the other 100000, unless
IL shall 20 the extent of 20 per cent OF the net earn
llgs
read tine bill with his usual care and certainly not tie
report. The bill Is clear enough Not one dollar OF tie
ciary Committee bll and of the haltrans
portation account which the Government IL now author
Tbe sinking fnnd IL constituted Of two items OF the half
Transportation account. which under existing law the
Of an additional sum be paid by each company $780,
600 annually bS the Union Pacific and Sl,2oo,oOo
UNDER the exsns law these companies pay
the Government, and which under existing law the
Government right TO immediately apply toward
rrinbursng isef the interest lt has ld-eyey single
cent OF that under the existing law Not ons
cent of IT goes into the sinking fund. ,,
klr Matfhews-TGen the only error into which have
fallen IS the constitution of the SINKING und under
the bill the judiciary Committee, and not as 10 tho
application the sinking fund which Is actually eons
tuted BY it.
THE RAILROAD COMMITTEES BILL.
Mr. Thurman-Wili my colleague allow me 10 interrupt
him. If it does not disturb him too much
Mr. Matthews-Certauly.
Mr. Thurman-Undoubtedy the sinking fund under
our bill is to be narsaled and applied precisely
chancellor would apply IT, and any other application
il would violation of the rights OF those Who have
Mr. Mathews-n other words it is literally true. asI
stated that the sinking fund established ~ the OH re.
benefit Of the Government OF the United states aud
ntepded only be applied TO the payment Of the
1,,af
sinking fund specifically created ny the b reported
from the or G tn the bene Of tho the uS
states but TO be arped to the payment OF he deots
appears by eighth section Of the bill OF the Judiciary
Committee, which declares
That said sinking fund established ard accumulaei
pa5s ,pScye hesig be held for he lrOissc t@ ss
gage or lien debts 81 ssh Of mp ss d i ny
Claims other creditors lawfully Upon the
funds SO TsgIs 70 pc B pre Ii Ne a. m & T
staes according TO the principles Of equity 10 ne End Ia
be entitled thereto IN due Order
Therefore. President, in my Judgment it is legit
mate argument against the merit OF the bill OF the jcd
cary Committee that this sinking fund. carefully o.
dered provided In OF the present legal oshgs
lions of the company is accumulated the benea
OF others first the United states itself wheeastbe
bill of the Railroad Committee deals with the question
before Congress namely settlement Of an existing
troyersy and provision security in the future in
respect the rights OF the United states, TO the exelu
sion all other obligations OF these companies Ia
respect 10 their indebtedness. 49,
MIR President, having pointed cut the differences
between the two Propositions, i purpose 10 discuss
questionssa rising upon both.
Mr. Thnrman-Beiore NY colleague proceeds to that,
will he allow call his attention 10 one tnlngi lie
speaks of the sinking fund provided by the judiciary
Committee bill II solely forthe benefit ~ tho
frst-mOrtgage boDdholders suppose u should be ADJ
sOrbed i'm payment O the first mortgage bondhoeIs,
what. theu, Is he remedy but to make The Government
lien the first mortgage and TO make ne Government Sc
Mr Matthcws-Yes; and with an accumulation in the
meantime that makes that Government debt woHa
more than any possible price that can now be liked
upon that entire property: viii then be- invested. 10
doubt with full power 10 egsate over what NOBODY else
will see III 10 make any claim Of interest in.
The object that the Railroad Committee kept steadily
in Wow was 10 diminish the amount and burden of s
debt from lime to time that IL should not at tho
time its maturity Toe unInansgeabie, that It should
not he excessive, - that 1t would not be beyond INC
reach and compass OF The power or the debtor 10 pay IN
some Reasonable way and not allow 1t 10 accumulate IN
such way, the company Itself during the intervening
time reapn all the results OF the profitable operations
of the road aud at the time Of the maturity OF these
debts having no longer any interest whatever remaining
In the properly other than Ia surrender II bodily as
might then be, to be quarreled over and sated about
and dcyOued by its dissatisfied creditors. suppose that
OF these corporations could and ae-
cumulate sinking fund III tber own hands, 10 be ~.
pied according 10 ther own discretion unit the date Of
The maturity oi this debt and should then say, have
been allowed To do tins in right ana according
to our own discretion and IN our own hands a. we had
the legal right to 40, for Yet we owe no man any thug
which by law he can require and exact the payment o.
Now, then. having accumulatei SioooVo'OOV III ths
way pay ourselves capital stock, with all the
dividends IN the meantime mat We nave received and so
pay ourselves out ara tue irsl mortgage hounoueis
and The secoDdmOrtgase bondholders and other cred
tors secured and unsecured. may go into court OF
equity and have the OF these roads marshacd as
the language Is In equity according to the prlneipeso
chancery, and pay them in the order OF the
priority of their liens. That is the feast TO
which invited. remember reading. years
ago. OF one like it believe II was on the
Island OF Barataria where the table was spead with deli
caces from every CLINE that could tempt the appetite or
satisfy the ongings OF hunger. Course after was
brought by obsequious waters; the yiands smoked
and the tempting fragrance tcked the nostI1s OF me
waiting guest fast he reached the sane
walters with the politest bow, swept the dishes away
bringing new ones and on. uut finally, from laen
exhaustion, without anyt thing. without the frtc
ments OF an ordinary meal he was sent away with ~
empty and crying stomach. So astute and ealna
lawyers the Judiciary Committee, with hlghsoundnk
nd al ans 10 do