Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1884-01-23
Aaucaster !gntelligenccr.
yon.,or rdmunds BIiI.

n
Senator Edmunds has introdu uceu
bill whose intentis to secure tne inueoV'
edness to the government oil the suDsi'
dized Pacific railroads. He takes up the
,.ors NJ senator Thurman, who secured
the massage of the Thurman bill, which
bad the like object OF securing the rail
roads debt to the government. Under
it n sinking fund was provided to pay
the debt at maturity, by requiring
o5 per cent. of the railroads net earn.
ings to be invested in government bonds
for that purpose. There is a difficulty
in determining this percentage of the
earnings, and another difficulty In in
yesting It in government bonds, which
can only be had at large premium.
Furthermore, IL is estimated that this
method Of payment will leave the COM
panies still indebted to the government
at the end Of the century, when their
debt natures, in the sum Of seyenty.five
million dollars. On June 30th, 1888, the
amount Of their debt was Sl02, $40, ,3l2.
By most remarkable legislation and
supreme court construction of it, the
United States was declared not entitled,
under the original subsidy to these roads,
to receive any interest upon its loan
until the maturity of the debt. The
project of the Pacific railroad owners
was to get all they could out Of their
ownership, while the bonds and interest
were uncollectable by the government,
and then abandon their roads
to the government for the debt
IL it should prove when due to
be more than the value of the property.
Congress, after taking FIRST lien on
the roads to secure its debt, in 1854
authorized the companies to issue first
mortgage bonds to an amount equal to
tue bonds issued to the government, and
agreed that the government bonds
should come in behind these.
1t is apprehended now that the pro.
visions of the Thurman bill will
not suffice to secure the payment of the
governments debt. The Pacific rail-
road competition is likely 10 diminish
the net profits, 50 as to compel
the foreclosure and purchase of
the subsidized railroads when the
bonds become due. II seems that
the sums earned by the companies
for government transportation are not
wholly retained on account Of their in.
debtedness, but that they receive large
payments on this account owing to tEt
opinion of the court of claims that suCt
earnings cannot be withheld over NOR
than the subsidized portions OF the road
Senator Edmuuds' bill directs that tn
earnings for government transportatio
over all the lines operated by the cOmpa
nies shall be withheld credit on thei
debts. There are other provisions in
tended to make the Thurman act opera
tive, and the companies are required t
accept the provisions Of the act, who's
cOns,itutionality they now dispute. The
are allowed to pay their debt in equa
semi.annual payments during sixt
years, from October 1854, paying thre
per cent, interest on the deferred pay
meIts
Mr. c. p. Huntington has additions
reason in this bill for thinking that tn
is Ia very cruel world. Mr.. Huntingto
is not happy in the contemplation
congressional legislation. The Tex
Pacific loses its subsidy and the Centr
Pacific has to pay its debt. Eight yea
ago Mr.. Huntington pronounced himse
very weary of trying to keep COngre
straight, and declared he would let
take his railroads altogether rather tha
suffer longer agony from its persecutlo,
He has managed, however, to stand tn
racket eight years longer, and probabl
death will seize him before he voluuta
rily resigns the struggle to hold on I
his property.