The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1884-01-31
THE PACIFIC RAILROAD DEBT.
Senator Edmunds' Bill to Amend the Acts
Providing for Its Settlement.

Senator Edmunds' Bill to Amend the Acts
Providing for Its Settlement.
WASHINGTON, Jan. 81
Senator Edmunds' bill to amend the Pa
cific Railroad Act of July 1, 1862, and the
acts of July ,, 1864, and May Z, 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-
thOrizes and directs the Secretary of the
Treasury to ascertain the amount of indebt-
edness of the 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, 1884, by
adding to the principal sum of said bonds
all sums paid thereon as interest (frst de-
Quoting, however, therefrom 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 and said indebtedness there
after 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-
structiOn of said Pacific Railroad and
branches, or SUGGESTIONS by cOnsOH-
daLiOnS 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 the
first of October, 1884, to an aggregate
amount equal to the Indebtedness asceT-
tanned ana computed as above, to which
shall be added interest thereon at the rate
OF three per cent. per annum TO accrue up
on said sum so aScertained to the average
MATURITY of said bonds of TPdpmntIOn. and
each of said bonds shall be for an 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 at par the first of April, 1884; sec
! Ond, the first of October, 1885, and so forth,
on the first days of April and October of
| each year, unl il 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 of the United States in lieu of claims
and demands of the acts of lS62-64 and of
! 1878; provided, however, that no money be
! paid the companies or either of them from
| the United Sta tes Treasury for or on ac-
! count of services rendered the United
States over or upon the railroad or
! telegraph lines of said compa-
! 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 alter October l, 1884, be carried
upon the books of the Treasury Department
| as soon as the same are audited, together
| with interest at three per centum per an
| 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 ,, 1864, and May Z, 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 shall be
| lawful for the companies to issue and dis
! pose of their respective bonds to the aggre-
! gate amount of their bonds in redemption,
which may remain outstanding and un-
| paid, or of the first mortgage bonds so as to
! bear less rate of interest and run for such
! term 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-
! tiOn 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, 1856, 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 shall 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 continue in force to the
| same extent as if this act were not passed.
1t also provides that the acceptance of the
| terms of the bill, should it be enacted, shall
! be held as an acceptance of the act of May,
! 1878, passed in amendment of the acts of
! 1852 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 COuntersigned
| by the Secretary, being filed and deposited
! with the Secretary of the Treasury.