The Abilene reflector. [volume] (Abilene, Kan.) 1883-1888, 1884-01-31
THE PACIFIC RAILROAD DEBT.
Senator Edmunds' Bill to Amend the Acts
Providing Cor Its Settlement.

liz Il ACAE4C hAfLhUAU DEbTs
Senator Edmunds' Bill to Amend the Acta
Providing Cor Its Settlement.
WASHINGTON, Jan. n
Senator Edmunds' bill to amend the Pa
cific Railroad Act Of July 1, 1862, and the
acts of July 2, 1864, and May Z, 1878, which
provided for 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 ths
Treasury to ascertain the amount of indebt-
edness of the several railroad companies tc-
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, 1854, by
adding to the principal sum of said bonds
all sums paid thereon as interest first de-
Quoting, however, therefrom the amounts
held in the sinking fund or reimbursed t.
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
oibCA W ONOuA OcCOllc uue ana DaKa-
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 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 samel
bonds IN redemption, each bearing date the
first of October, 1884, to an aggregate
amount equal to the indebtedness aScer.
tanned ana computed as 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 an equal
one hundred and twentieth part OF said
debt and interest so aScertained. 1t pro-
videS that each of said bonds shall be paw
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, 1880, and so forth,
on the first days of April and October OF
each year, until all of said bonds have been
fully paid, and each of said bonds, resDec-
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
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
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 after October l, 1881, be carried
upon the books of the Treasury Department
as soon as the same are audited, together
with interest az three per centum per an
mum; all such amounts, together with in
.terest thereon, to be applied to the payment
of the bond i'll redemption then nearest ma
turity. 1t provides that statutory liens
created by virtue of the acts of July ], 1852,
July >, 1864, and May :, 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 NAV remain outstanding and I'M
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
che companies respectively keep the rail
road and telegraph lines, for the construc-
Lion 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 60, at fair,
reasonable rates of compensation, not to
exceed the amounts paid by privaye parties
for the same kind of service, ana snail 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
1873, passed in amendment OF the acts of
1862 and 1864; and further, the act shall
lake effect as to each company referred to,
or their successors, upon its acceptance I'M
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.