Arkansas weekly mansion., 1884-01-26
THE PACIFIC RAILROAD DEBT.
Senator Edmunds' Bill TO Amer:d the Acts
Providing for Its Settlement.


Senator Edmunds' Bill TO Amer:d the Acts
Providing for Its settlement.
wAsHIrGTOE. Jan. 81.
Senator Edmunds' bill to amend the Pa
ciic Railroad Act of July 1, 1862, and the
acts of July ?, 1864, and May !, 1879, 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 Unitcd States
the indebtedness OF said compa nies, nu-
tiorizos and directs the Secreta y 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 sue
ccssors, of the first of October, 1891, by
adding to the principal sum of said bonds
all sums paiI thereon as interest first de-
Quoting, however, therefropi the amounts
held in the sinking fund 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 valuo of said indebtedness
from said date to average date when said
subsidy bon Is and said Indebtedness there
alter to occur shall become due and paya-
BIZ, and interest at three per cent.
nually. 1t provides that the several
companies which received subsidy bonds
of the United States to aid i'll the con-
struction of said Pacific Railroad and
branches, or SUGGESTIONS by consoli-
datons 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 aggregate
amount equal to the Indebtedness ascer-
tanned ana computed Us above, to which
shall be added interest thereon at the ate
OF three per cent. per annum TO accrue up
on said sum ascertained to the average
maturity of said onds of redemption, and
each OF said bonds shall be for equal
one hundred and twentieth part of said
oebt and interest SO ascertained. 1t pro-
vides that each of said bonds snail be pay
able semi-annually in any lawful money,
any bonds or obligations of the United
States at par the first of April, 1881; sec
ond, the first of October, 1885, 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, respec-
lively, when paid shall he thereupon sur
rendered to said company; that said bonds
OF redemption shall be received 10y and on
bel alf OF the United States in lieu of claims
and demands OF the acts of lS62-G4 and of
1878; provided, however, that no money be
paid tue 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.
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 /, 1881, be carried
upon the books of the Treasury Department.
soon the same are audited, together
with interest At three per centum per an
mum; all such amounts, together with III
terest thereon, to be applied to the paym
nj 10 n
turity. 1t provides that statutory liens
created by virtue of the acts of July ], 1867,
July ,, 1861, and May !. 1873, to secure the
repayment of subsidy bonds and Interest
thereon, shall remain as security for the
payment of bonds in redemp, ion; 1t 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 I'M
paid or of tho first mortgage bonds so as 10
bear 4 less rate of interest and run for such
term as deemed expedlent and to secure the
same by mortgages upon respective rail-
roads, telegraph equipments, franchises
and property, and from the proceeds take
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 l ng 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 telc-
graph lines and transport mails, troops,
munitions of war and supplies or pubhc
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 i'll the use OF the
same, as required by the sixth section of
the act of July. 1856, and shall make pune
tual payment o! the bonds, no other sums
Shall be demanded of them, and none of
the penalties or liabilities provided in the
acts of 1862, 1861 and 1873 shall be incurred
by or enforced against them; but all such
payments, requirements, penalties and LA
hiliiies shall be suspended and not deemed
due or payable until default of some of the
provisions of this bill shall he made and
continued six months, in which case they
same extent 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, pa Ssed in amendment OF the acsS OF
1867 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 countersiSned
by the Secretary, being filed and deposited
with the Secretary of the Treasury.