National Republican., 1884-01-22
THEIR EXACT STANDING.
Senator Elmunds Introduces a Bill 10 Rcgu-
lato tho Pacific Railroads.
Secretary Tolger directed 60 Ascertain the
indebtedness OF the auss.diZtd I;ouds.

to amend the Pacific railroad act oi July 1,
1862 and the acts Of July ., 1sGi, aud May
Z, 1878, which provided for tho settlement Of
the claims growing out of the issue Of bonds
to aid in the construction of the railroad
mentioned in the act, aud for tho securing to
the United States the Indebtedness of said
companies, authorizes and directs the secre-
tary of tho treasury 10 ascertain the amoun5
of the indebtedness OF tine several railroad
companies to which subsidy bonds of tho
United States were advanced in aid of the
construction o, the PaCriC railroad and
branches, or their successor, as of tho first
day of October, iSsi, by adding TO the pruct-
pal sum OF said bonds all sums which have
been paid thereon rs interest; first, however,
deducting thcrelrOm the amounts held in the
sinking fund or reimbursed tJ the United
States by services or Otherwise, up to and iu-
Clndng all interest duo and payable on said
date, and by computing thuy then pre- cnt
value of said Indebtedness from said date to
the average date when the said subsidy bonds
and said indebtedness thereafter to accrue
shall become due and payable ~ tho interest
rate of 8 per cCutum semi-aunually.
II provides chat tho several companies,
which received subsidy bonds olthu United
States in aid Of tho construction of said
Pacific railroad and branches or the success
sOrs by consolidation or otherwise Of said
companies, be authorized resp pscuvely to make
issue and deliver To tho secretary ui the
treasury (whO is by tho bill authorized to re-
ceive the samo) bonds of redemption, each
bearing date the first day Of October, l--l, to
an aggregate amount equal to tho indebted
ness a5GCrtaiuel and computed as
above, to which shall bo added tho in
tercst thereon ut the rAto 3 per ccutum
per annum, TO accrue upon tho said sum so
ascGrtained to the average maturity Of said
bonds of rcdcmptiou and each OF said bonds
shall be for the equal l2Uth part of said doOb
aud interest so aScertalncd. 1t provides that
each of said bonds shall be payable semi
annually in any lawful money, or in any
bonds or obligation OF the United States at
par, the first on the first day OF April, 1850;
the second ON the first day Ut October, 1855,
and so forth. on tho first days of April and
October in each year, until all Of SAID bonds
shall have been fully paid and DISCHARGED,
and that each of said bonds respectively,
when paid, shall be thercugou surrendered
TO said company that said bonds ot re-
demptiOn shall be received, by and on
bohalt OF the United States In lien Of the
claims and demands OF the acts Of 1862, 1864,
aud 1915 above referred TO; provided. how
ever, that no money shall DO paid to the com
panies, or either of them, from tho United
States treasury for or on account Of services
rendered to the United States, over or upon
tho railroad or telegraph lines oil said COM
panies, or over or upon any railroad or tcle-
graph line owned, leased oI operated by said
companies, or either OF them, uHti. the bond
nearest maturity shall be fully paid, and that
no excess over the payment Of said current
bond shall be paid TO said company.
1t provides, however, that all sums duo said
companies for services rendered from and
after tho first day OF October, l-,l, shall be
carried upon the books Of the treasury depart
mont as soon US the same are audited, to-
gethcr with th9 interest at the rate Of por
oil I.
gether with the interest thereon, TO be ap-
piled to tho payment OF tho bond Of rcdemp-
tion then nearest to maturity.
1t provides that the s5atu .Ory liens cceltel
by virtue Of the acts OF July /, 1862, July .,
1864, and May Z, lsiS, to secure tbs rcpay-
neut OF the subsidy bonds and interest
thereon shall remain as security Tor the pay
mont of the bonds OF redemption. 1t ul8l
provides however, that any OF the companies
shall be entitled at any time 60 prepay or an-
tiCipate the payment and discharge of any
Of said bonds, and To that ond declares that
it shall be lawful for the companies to issue
and dispose of their respective bonds To an
aggregate OF the amount OF their bonds of re-
demption which may rcman outstanding
and unpaid or Of their first mortgage bonds
SO as to bear u less rate of interest, aud %
run for such term aS may bG deemed expo,
dent, and to secure the same by mortgages
upon their respective railroads, telegraph
equipments, franchises, and property and
from the proceeds So take up, p.y for, and
cancel their outstanding first mortgage
bonds, and such bonds OF redemption in in
stGllmonts of not less tA0n ten such bond.
each SO long rs that number raua.ns.
The bill provides further that so long a!
the companies shall respectively keep THEN
railroad and telegraph lines, Tor the COnstruc
ton OF which subsidy bonds were issued, il
repair and use, and shall at all times trgu5ml
dispatches over said telegraph lines, anl
transport mails, troops, munitions OF war
and supplies oil public stores upon said rail
roads for the government whenever required
to do 80, at l.ur and reasonable rates oil com
peusaUiOn, not to exceed the amounts paid ~
private parties Tor the same kind of service
and shall give the government preference il
the uss OF the samO, as rec urCd by the oiSt.
section Of the act y. july, 1862, and shat
mako punCtual payment OF the bonds D
redemption, no other or further sum
shall bo demanded Of them, and none OF Uh
penalties or liabilities provided for in tn
acts OF lS62''Ul aud 1915 shall be incurred by
or enforced against them, but all such pay
mentS, requirements, bcnGlties, ana .ab.lItID
shall be suspended and not deemed 10 be Gu
or payable, owing, on incurred, unit! Geiuu.
OF some OF the pIOyiBlOus Oi this bill shall u
made, and shall hayo continued Tor pGru
of six months, i'll which case they shall stan,
revived ana continue in force to the sam
extent aS If this act had not boon passed.
1t also provides that the acceptance of tn
terms Of the bill, should 10 De enacted, sha.
bU held to bo an acceptance Of tho act u
May, 1915, passed in amendment OF tho uc.
of 1869 and 1864. And luvlhur, that the nr
shall take effect as 10 each Of the compuuie
referred to or their successors upOn its q,
ceptaucc under the corporate seal OF sal
company signed by tho president aud coun
tcrsigned by the secretary, bang illed am
depOsitCi with the secretary OF tny trcuaur,
rpl,a y-ngLaag frerfu..gg,..