Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1884-01-22
THE PACIFIC RAILROADS.
Senator Ednunds's Bill for Providing
for Their Indebtedness 10 the United.

htates-
WASHINGTON, January 2l.-Senator Ed
munds's bill to amend the Pacific railroad
act of July /, 1862, and the acts OF July 3,
1864, and May I, 1878, which provided for
a settlement of the claims growing out of
the issue of bonds to aid the construction
of railroads mentioned in the act, and Sc
curing to the United States the indebted
ness of said companies, authorizes and
directs the Secretary OF the Treasury to
ascertain the amount OF Indebtedness of
the several railroad companies which had
subsidy bonds of the United States adj
vanced to aid in the construction of the
Pacific railroad and branches or successors
up to the lst of October, 1884, by adding
20 the principal sum of said bonds all
sums paid thereon as interest first de-
ducting, however, therefrom the amounts
held in the sinking fund or reimbursed
to the United States by services or other
wise) up to and including all interest due
and payable on said date, and by COM
putting the then present value of said in
debtedness from said date to an average
date, when said subsidy bonds and
said Indebtedness thereafter to accrue
shall become due and payable at the in
tercst rate Of three per centum semi-an
nually. 1t provides that the several
companies which received subsidy bonds
from the United States for the construc-
ton of said Pacific railroad and branches
or SUGGESTIONS by consolidation or other
wise, that said companies be authorized
respectively 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 lst
OF October, 1880, of an aggregate amount
equal to the Indebtedness ascertained and
computed as above; to which shall be
added interest thereon at the rate OF three
per cent. per annum, TO accrue upon said
sum so ascertained to the average maturity
of said bonds in redemption, and each Of
said bonds shall be equal to the one hun
dred and twentieth part of said debt and
interest so ascertained. 1t provides that
each of said bonds shall be payable
semi-annually in any lawful money or
any. bonds or obligation of the United
States at par, the first on the lst of April,
1885; second, the 1st Of October, 1885,
and so fogth 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, respectively, when paid, be
lahereupon surrendered to the same COM
panies; that said bonds of redemption be
received by and on behalf of the United
States in lieu Of the claims and demands
Of the acts of 1862, 1864, and 1873. Pro-
vided, however, no money be paid the
companies, or either of them, from the
United States Treasury for or on account
of services rendered the United States
over or upon the railroad or telegraph
lines of said companies, or over or upon
any railroad or telegraph lines, owned,
leased, or operated by said companies, or
either, until the bond nearest maturity be
fully paid; and no excess over pay
| ment of said current bonds shall be
paid said company. 1t provides, how
ever, that all sums due said COM
panies for services rendered from
| and after October l, 1884. be carried upon
| the books OF the Treasury Department as
soon as the same may be audited, together
| with the interest three per cent. per annum.
| All such amounts, together with the inter
est theron, shall be applied to the pay
ment of the bonds of redemption then
nearest maturity. 1t provides that the
| statutory liens, created by virtue OF the
| acts of July Is, 1862, July ., 1864, and
May Z, 1878, to secure the repayment OF
subsidy bonds and interest thereon, shall
| remain security for the payment of the
bonds of redemption. 1t also provides
however, that any companies may be en-.
titled at any time to anticipate the pay
ment and discharge of any OF said bonds
and TO that end declares that it shall be
lawful for said companies to issue and dis
pose of their respective bonds to an ag
gregate amount of their bonds of re-
demption which may remain outstanding
and unpaid; or, il first mortgage
bonds at less rate OF interest, and run
for such term Us may be deemed expedient,
and to secure same by mortgages upon
their respective railroads, telegraph equip
ments, franchises and property, and from
the proceeds take up any outstanding first
mortgage bonds, and such bonds of re
demption, in installments of not less than
ten such bonds each SO long as that mum
Der remains. The bill provides further
that so long as the companies respectively
keep railroad and telegraph lines, for the
construction of which subsidy bonds have
been issued, in repair and use, they shal
at all times transmit dispatches over tkeil
telegraph lines and transport mails, troops
munitions of war, and supplies and public
stores upon said railroads for the govern
ment whenever required to do so, at fail
and reasonable rates of compensation, moi
to exceed the amounts paid by private
parties ior the same Kind of service
and shall give the government preference
IN the use of same as required by the sixth
section Of the act of July, 1862, and shall
make punctual payment of the bonds oi
redemption, no other or further sums
shall be demanded of them, and none ol
the penalties or liabilities provided in the
acts Of 1862, 1864 and 1873 shall be be in,
Cured by or enforced against them; but
all such payments, requirements, penal
ties and liabilities shall be suspended, anG
not deemed due or payable until deianl
J OF some provision, Of this bill shall b:
made and continued six months, in whicl
r case they shall stand revived, and continu,
3 in force to the same extent as IL this nc
t had not been passed. 1t also provide
: that acceptance of the terms of the bil
1 shall be held as acceptance of the act {
!. May 9TH, passed in amendment TO the aci
It of 1862 and 1864; and further, that thi
t act shall take effect as to each of the con
n panies referred to, or their successor
/. upon its acceptance under the corporal
y seal OF said company. signed By the pres