The Milan exchange. (Milan, Gibson County, Tenn.) 1874-1978, 1884-01-26
TIE pAClrIC RAILROAD pEpT.
Senator Edmunds' Bfl to Amend the Acis
providing for It's Settlement.

providing for Its settlement.
WAsHSGToN, Jan. n.
Senator Edmunds' bill to amend the Pa
cifc Railroad Act Of July l. 1882. and the
acts of July >. 1864 and Moy :, 1873. which
provided for a settlement OF claims grow
ing out Of the issue of bonds TO aid in the
construction of the railroads mentioned in
the act, and securing to the United States
the indebtedness of said companies, au-
tlorizes and drec.s the Secretary OF the
Treasury TO ascertain the amount of indebt-
edness Of tho several railroad companies to
which subsidy bonds of the United States
were advanced to aid in the construction of
the Pacific Railroad and branches or sue
cessors as of the first of October, 1891, by
adding to the principal sum of said bonds.
all sums paid thereon as interest (irst de-
Quoting, however, therelrom the amounts
held in the sinking fund or reimbursed to
the United States by services or otherwise),
up to and including all interest due and
payable at said date, and by computing the
then present value of said indebtedness
from said date to average date when said
subsidy bonds aud said indebtedness there
a ter to occur shall become due and paya-
bic, and interest at three per cent. an
nually. 1t provides that the several
companies which received subsidy bonds
of the United States to aid in the con-
s,ruetion of said Pacific Railroad and
branches, or SUGGESTIONS by CONSOLE
dations or otherwise of said companies, be
authorized to make, issue and deliver to
the Secretary of the Treasury (who is by
the bill authorized to receive the same)
bonds in redemption, each bearing date tue
first of October, 1884, to All aggregate
amount equal TO the Indebtedness ascer-
tanned ami computed above, to which
shall be added interest thereon at the rate
of three per cent per annum 10 accrue up
on said sum so ascertained to the average
maturity of said bonds of redemption, and
each of said bonds shall be for al equal
one hundred and twentieth part OF said
| debt and interest so ascertained. 1t pro-
/ vides that each of said bonds shall be pay
able semi-annually in any lawful money,
! or any bonds or obligations OF the United
! States AZ par the first of April, 1854; sec
| ond, the first of October, 1885, and so forth,
! OH the first days of April and October OF
each year, until all of said bonds have been
fully paid, and each of said bonds, respec-
lively, when paid, shall be thereupon sur
| rendered to said company; that said bonds
| of redemption shall be received by and on
behalf or the United States in lieu of claims
and demands of the acts of lSG2-Gi and of
! 1873; provided, however, that no money be
paid the companies or either of them from
the United States Treasury for or on ac-
count of services rendered the United
States over or upon the railroad or
b
MES or over or upon any railroad or
telegraph line owned, leased or operated by
said companies or either of them until the
bond nearest maturity shall be fully paid,
and no excess over the payment of said
current bond shall be held by said COM
pany. 1t provides, however, that all sums
due said companies for services rendered
from and after October 1, 1881, be carried
upon the books of the Treasury Department.
as soon as the same are audited, together
| with iptaract nj thraa cnntIlm n
mum; all such amounts, together with IN
terest thereon, to be applied to the payment
of the bond in redemption then nearest ma
turity. 1t provides that statutory liens
created by virtue of the acts of July ], 1862,
July 2, 1864, and May 7, 1873, to secure the
repayment of subsidy bonds and interest
thereon, shall remain as security for the
payment of bonds in redemption; it also
provides, however, that any companies
shall be entitled at any time to anticipate
the payment and discharge any of said
bonds, and to that end declares it SHAH be
lawful for the companies to issue and dis
pose of their res pective bonds to the aggre-
gate amount of their bonds in redemption,
which may remain outstanding and I'M
paid, or of the first mortgage bonds so as to
bear less rate of interest and run for such
term as deemed expedient and to secure the
same by mortgages upon respective rail-
roads, telegraph equipments, franchises
and property, and from the proceeds take
up the outstanding first mortgage bonds,
and such bonds of redemption in install
ments of not less than ten of such bonds
each, so long as that number remains.
The bill provides further that SO long as
the companies respectively keep the rail
road and telegraph lines, for the construc-
ton of which the subsidy bonds were is
sued, in repair and use, and shall at all
times transmit dispatches over the tele-
graph lines and transport mails, troops,
munitions of war and supplies of public
stores upon the railroads Tor the govern
ment whenever required to do so, at fair,
reasonable rates of compensation, not to
exceed the amounts paid by private parties
for the same kind of service, and shall give
the government preference in the use OF the
same, as required by the sixth section of
the act of July, 1885, and shall make pune
tual payment Of the bonds, no other sums
shall be demanded of them, and none of
the penalties or liabilities provided in the
acts of 1862, 1864 and 1873 shall be incurred
by or enforced against them; but all such
payments, requirements, penalties and liza
bilities snail be suspended, and not deemed
due or payable until default of some of the
provisions of this bill shall be made and
continued six months, in which case they
stand revived and con inue in force to the
. same extent as ii this act were not passed
1t also provides that the acceptance of the
terms of the bill, should it he enacted, shall
be held as an acceptance of the act of May
| | 1878, passed in amendment OF the acts OF
1862 and 1864; and further, the act shall
take effect as to each company referred to
or their successors, upon its acceptance un
der the corporate seal of said company
signed by the President and countersiguec
by the Secretary, being filed and deposited
wIth the Secretary OF the Treasury.