New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-04-15
RAILWAY INTERESTS.
TO AMEND THE THURMAN SINKING FUND ACT


TWO PROPOSED HOUSE BILLS FOR WITHHOLDING
PAYMENTS DUE on NoN-AIDED PORTIONS OF
THE PACIFIC RAILROADS.
WASHINGTON April 14.-The Subcommittee
Of the Hoase Committee on Pacific Railroads. TO which
was referred all bulls to amend the Thurman Sinking
Fund Act have prepared majority and minority re-
por TO lie submitted the full committee tomorrow
The former will he signed by Mcssrs Jordan OF Oho'
and Wilson, of Iowa and the latter by Mr. Thompson
of Kentucky. IN each instance now bill Is 10 DC SUD
mittcd The measure prepared 10y the majority proposes
70 extend the provision Of the Thurman Act TO the h
sas Pacific pad It further provides that the secretary
Of the Treasury shall withhold from the central RACINE
Union Pacific Kansas Pacific. Central Branch OF uuioh
Pacific aud sioux City and Pacific railroad companies d"
payments for services which have been rendered. u"
NAV hereafter he rendered by amy all of SAID comp"
mics in the transportation Of mails, troops munitions Vi
war aud pubc stores for the Government OF the unteu
States over any aud all portions OF the lines oWneu ~
said COM lGies respectively, not aided or suoSuHe" y!
the bonds Of United States, and that upon eher VI
said companies filing with the Secretary OF the irV"Su!
Its written consent agreement that the Secretary OF
the Treasury may withhold said payments due ana TO PC
come due hereafter for services so rendered anu 10 10
hereafter rendered upon such non aded PORTIONS vi '"0
lines so owned by them. the secretary OF the Are"s9
Is hereby authorized and directed. Us oOsderoh anu
agreement to allow said companies interest upon Sau
paymeHts 80 withheld from the time they become due
said companies at the ratio per cent per anpum and
10 allow the same rate OF interest upon the pay ments
hereafter withheld The Secretary OF the Treasury sh
keen separate with each of said companies OF
The money so withheld To be withheld together WIN
the interest allowed the same and on hna settlement
with said companies they shall be respectively creded
with the amount of money withheld from them and
the interest thereon above allowed The bill tufther
provides that she secretary OF tho Treasury shall DC
authorized Invest the sinking fund OF any Oh ss"
companies in first mortgage bonds OF am OF Sald com
panes OF with the consent OF said companies tac Sece
tary of the Treasury may allow them per cent interest
from tbe tin,c of payment into the sinking fund.
AIN the report accompanying the above the majority say
in part: Tic Thurman Act seems to be the pest moue
that has vet devised for the protection OF tue inter-
este of the Government in Its relation TO THESE roads,
ana We have thought best 20 act upon the principles
mon which it WAS passed and apply it rs far as pract-
cable and lust TO any other road, and not MAKE any
amendments OF it which would make he companies uS
posed 10 again test its ,tituiOnay Inc nnahciM
condition Kansas Pacific Is surh hi We ee Jus'l
fed i'm insis;ing that Thurman Act shall be extended
To it that II shall be required To pay the sun u -
per cent Of its net carnings-the same rs Ihe ehru
Pacife ANA Union PacicHe-intO sinking fund Inc
committee is OF opinion that the government ni's no
majls rooIls etc over the non-aded portions of the
roads and 10 settle the controversy whcG Exists , %
tween the Government and these companies !HSelt tie
section providing that upon the conn auics ming thc
consent TO the retention OF compeusauon tne sec
rotary of the Treasury shall allow interest upon 'Ae
amount 20 claimed ,s...- 10
The question of dcduoinE amounts paid for new equip
nent from the gross earnings Is considered ny Inc com
mce as OF o judicial character, and no attempt l. maze
10 legsatC ulOn d., -. - 3. ,tl ,,ri
or Mr. Thomps ms bill tho majority say It would Seil-
onslv cruo nc eifcienCv OF the roads ana pfcNe tIc
construction of feeders and branch rodlS Nn'cH 90
uece.Sary To The development OF the country anu SO
coSsiul management of the roads 49,, -. -.
Railroad Commissioner Armstrong submitted 70 tne
ful committee a plan eXten0ug The time OF pay nent 70
sixty wears the principal and interest to be paid N ~
seui-annua iistalmnts. the hrst az me p'S'a2 OF IN
iu OF Tins the subcommittee says doubts It's juris
dctlo TO naugurae radical cEanSe IN the policy OF
The Government Ia its relations 10 thcse roads IL Is
more than probable however, that something OF tHlS
kind may have TO be done sooner or later. - .
Mr. ThOmpsOn's bill. IN declaring what Shai constitute
provides that deductions ShalI ne AZ
lowed for equiipments II further provides thal the
Secretary of the Treasury shall he allowed 70 invest tle
sinking funds or all the bOnd-snbsdized roads III hSt
mortgage bonds OF said companies or IN United states
bonds or securities In his discretion or he may WIN He
consent OF the cmpanles apply the same tO the tN-
rpishueut interest OF the subsidy h0hd the OoN
srnment TO refund the at any ilne on ueiahu
hAc0ne necessary to any debt obligations ~ salu
corporations prior lien to said interest his Dill pro
fcs O. Ia require from the Central Paclhc $ZOVoUoO
annually and s. per cent OF the net earnings; from Inc
Union Pacific - 900 900 annually aud S7 per cent or
the net earnings; from the Kansas Pacinc S0uO;oVU
annually and A. per cent; from tue central bfahoh Oh
tho Union Pacific $4,000 annually am - per cent,
and from tie Sioux City aud Pacic @l1UVoJ an 20 per
cent Mr. Thompson also proposes 10 lhclode nc citt
ings Of al road, owned operated controlled or lcSeu ny
The subsidized roads IN the extent OF tel interest
Therein In his report accompanying te OH MI lOlup
son SAYS Under the operation or the thurman Shhius
Fupd Act when bonds mature in 1898 there VIII ne ue
The Government from all the bonG-subs!diIed lO'd'