New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-03-21
THE PACIFIC RAILROADS
STANLEY MArTHEws's SPEECH.

hin ~ No I to alter and amend the act entitled An
act TO aid in the construction OF railroad and Telegraph
line from the Missouri River to the Pacific oceah anu
to secure to the Government the Use OF the same fof
postal military and other purposes approved S"iy -
1862 and also TO otter and amend the act OF Congress
! approyed July 9, 1854, in amendment OF hrstnamea
act Mr.. Matthews said
Mr.. PRESIDENT: In pursuance or the ihStruc'o"' "
the Committee on Railroads, had the honor To report
a fe DAYS sIDce Senate Bill No 512, which had peeh
referred TO that committee. bill in relation 10 the IA
cac Railroads back to the Senate, with an amendmeht
in the nature of substitute, which. by common con-
sent at the Tine understood should be treated "s
the bill, in the OF the substitute ohere
by tie Senator from Ohio my coleage tMr. Ihuih'an
reportng from the Committee the Judiciary i'll 'he
,re manner Senate bill No 49, The two bills cover pre-.
end dispose OF II each in fits own way one necessary
excIudes the other that Is Impossible 10 discuss
either Without understanding and examining both ana
in order that the Senate may be brought 10 lne
m The two bills is purpose, on taking my
seat, that the bill reported RON nj, me tS bS
Committee shall be substituted ior tue Dill iePo''0 "
the Committee on the judiciary. ,...,
In order that the Senate may exactly nnderst ana
what the propositions are which are conheu III thi'
bill, / will explain IL section by section.
THE SINKING FUND.
The first section provides for the 1ouhdatloh vi SINH
ing fund which, when it has accumulated Tor certain
period shall operate discharge TO the extent OF us
amount the sum which at that period shall be found ana
states from the railroad companies which are c,
braoed in the provisions OF the biII me IeTal icc
Railroad Company and the Union taGmc hrUao
Of tat sinking fund takes the amount Of money Whh
ball he Dund from the Government 10 those Ioaus'
rcsnectiyey up to and including the 3lst day OF March,
I,Ts There viii then he due from the Government 10
tine railroad companies unasccrtoined amount on ac
cnt az and OF mails, troops,
munitions Of war, supplies anu pupiIc stores. ins re-
tbe terms of the present law the Government would be
bound tu pay 10 the companies ana u does not re-
fer that other hall which, by thu terms OF me present
law the Government has right 10 retain for lis own
payment, credit on the aiioai, 9 .Ie Irinc,
nal and interest ~ the debt due on the bonds or on ac
count Of The bonds from the railroad companies TO the
| Government. . A., -.
isting laws 10 which shall have occasion hereafter
more specifically 10 refer. there are two sources rom
winch the cumpsnes expected either III whole or IN
part r,mbui to the Government s advances on ac-
count the principal aud interest OF these bonds one
Of those is this transportation account ara the
right of the Government in reference to that Is 10 retain
ccher with per cent the net earnings OF the roads
from the time OF their completion. Whatever may De
c1st,ng law ON those two accounts. up to March 81.
1873. remains untouched by ms M and Is 10 NC pau e
ceit that which II bow In force.
Mr Thurman-I.et understand my colleague Does
he say that il the Railroad Committees bill passes me
Ialf iransp account and the PER cent VIII still
he payable to The Government mt. as ROY. roy ,o-s
Mir. Mn,Glews-tpt to the 3lst OF MARCH, 1919
MIR. MISUNDERSTANDING not and thar day the
other half Of the transportation account bel dic rom
the Government 10 the companies IL TO De retained ny
the Government tie beginning aud foundation OF the
I stalking ,I.nd proy led 10y this bill
Ieay that that sum unascertaned and 1t L: I'M
nsccrnaJle AT present II Will IN the opinion Of the
than ~ ooooco from each COMPANY but II less the
contribute such amount may IN addition be- sufficient
and required to make 1t equal 10 that SUM Of floooouo
for each; that We commonc, the sinking iud on ihe
3ist OF March, 1875 with capital OF not less than
- 100000. II will probably amount To much larger
sum. -, 49,, a., ., o a..
to contribute To thal sinking luna annuity inc
sum al "a 100000 eacl-
In equal smi annual insalmenis the first day OF Aprl
October IN each year coIlnins Cd ihe mr., a'y o. S
Of 0tio,r In The var 1900 Interest all placed to
trr.to Semi annually al tie rate q per
ACCOUNTS IN 1900
On the Isl day OF October 1900, the account between
the United states and the railroad companies must
| lac stated and the balance ascertained The bonds
which the Government has advanced and which by their
Terms were payable in thirty years from their date. Will
then all maied the average date oi thelr matur
nv believe Is July 1898; some not faling dne util
the year 1900. Whatever interest IN addition to that
nted by the coupons payable and paid by the
Government. TO he calculated and added after the
ascge maturity of the debt up 10 tins pci"d hhed iOi
I'M. amounts about months interest on
the whole amount of The Indebtedness. Then me SINK
ug fund. with all iis accumu!aous 10 be suhtraced
froin the amount thus found due and that remaining
and urpaId principal sum IL then 10 hc e4enheG as 10
The tenn al lis payment FOR the period of twenty-five
year. from that date, being payable scin!auhua'iy III
/ snual Instruments my IA number each representing
ia mouths upon the entire unpaid principal sum
THESE Tayicuts. by the terms OF the hId section Of
the bill. aIc to he ~ leu ~ all payments required from
the ounipanios under tue existing law So mat after
March 81. ISIS the Government VIII have no longer IFS
present night 20 retain one-aii OF the sums becoming
due from 10 from time Ia time 10 the companies ON ac-
count transportation and viii cease TO have right 10
Ieuurr 10 account 10 the Government
annually per cent OF their net earnings, ana We
receive from each company The sinking ilnd and the
Ua,me T. contributed 10 that sN months IN lieu Of
aud IN satisfaction Of every other moey demand under
the law In respect TO the reimbursement To the Govern
al ir 4 al L.
count of these bonds In order more perfectly to secure
To the it, rights n thus modified aud rem
dcred certain under this hll IN Cu1Ju1tion with the
statutes which then may remain IL force 50 Tar ma they
unm0dicd by II, II Is provided Ia TIE second section
OF the bill
That ON the failure refusal said companies either OF
Them 20 make any pay meni IN aocorhner %dh ie
hereof in regard 20 ilr lqmao Of d Gonas ,d Interest
imperative a. 10 such deauubg COMPANY hhd ihc rights
SS w. Which tins IS amendaory shall b. in ia force and ei
feet THIS act had not been passed. except US hereinafter
In the alternative
The United states nay IN case 81 default aforesaid IL s retain
a. on ae0n iS no nS tIu a % @ M IL
default account of the carriage nna OF The
, nn ,a aGV default i is rS%oSe ''''' anu '' '
This gives to the Government in that event the right
TO withhold the pay ment OF anything whatever
count OF what may accrue from the Government from
time to time to these companies on account OF public
trans i,ortatOn until the default Is extinguished
Ia order 10 extend that security 1t Is provided In the
fourth section of the BILL
the OF the Government created by NTH
July h62 amended by the Act Of July
2 be impaired released 10y the
OPERATIONS until the whole amount b the principal
OF said bonds with interest thereon paid the United
States aforesaid shall DO fully paid but said mortgage
shall full and virtue, and the failure Of
either said 10 perform the obligations Imposed
upon them by this act iid mortgage may also he enforced
against such detailing company for any such default
So that the lien and security Of the existing mortgage
the present statutory lien created by and existing under
the Two IN force and referred 10 IN this Section
continues aud remains IN force not only for the purpose
OF enforcing all the conditions OF that mort they
were prescribed by the original acts creating the lien,
but the provisions OF that mortgage By this act
tened 10 embrace one OF the conditions the
breach Of which would create forfeiture OF right under
that mortgage failure the part OF the companies