National Republican., 1884-05-14
THE PACIFIC RAILROADS.
Report OF tho Minority Committee and
the BlI which They Propose.

Report OF the Minority Committee ana
the Bill which They Propose.
Mr. Post submitted to the house yesterday,
for reference, the report of the minority Of
the committee on Pacific railroads on the
bill amending tho sinking fund act. Tho
minority bases its report, and the bill which
IL proposes as substitute for the majority
bill, on the conceded failure of the Thurman
act to accomplish tho purpose intended.
There is no dispute, says the report in the
committee, or in tho minds of tho public,
that something should be done. some legisla.
ton enacted, which will better conserve tho
interests of the govornmont in the matter of
tho indebtedness of tho Pacific rail-
roads than the operation of the present
law. Tho failure of tho Thurman
act is due to conditions which have arisen
subsequent to its passage, and which could
not at that timo be anticipated. 1t was not
then foresecn that the 9, 8, and per cent.
government bonds might be called In and
extended at lower rate of interest. The
bill reported by the majority provides for an
increase of tho per centum of the net earnings
to be paid into the sinking fund, from 25 to
35 per cent. per annum, and this is the only
relief afforded. The minority believe that
the passage of the Thompson bill would not
better the existing status of affairs materially,
as it is, at best, but q temporary makcshift,
and but postpones the period when some
definite action must bo taken looking toward
the adjustment of the debt, which must, of
necessity, DO based on tho extension of the
time wherein the debt may be paid.
The scope of tho bill presented by the
minority is to fix day on which tho debt of
the companies to tho government shall BIO
ascertained, on the samo principle as IL the
whole debt and interest wero to be paid on
said day, witba proper rebate of interest at
the rate of per cent. per annum and de-
Quoting from such amount all payments
made by the companies in moneys or trans
portation or otherwise, and extending tho
time at an interest of 3 per cent. per annum.
The period of extension for the payment of
the last installment of tho indebtedness is
forty-six years beyond the date of maturity
of the subsidy bonds, or au average exten-
sion of the whole debt of twenty three
years. In consideration of the
extension of timo thus granted the companies
are required TO deposit with tho secretary of
tho treasury bonds of redemption for the
amount Of tho debt ascertained in specific
sums, one bond to mature in six months; and
all the earnings of the road by government
transportation on any road owned, leased, or
operated by tho company shall be applied to
the current maturing bonds of redemption;
and no money shall be paid by the govern
ment for transportation or services of any
kind over aided or non-aided roads until the
The bill extends the statutory lien and
security now subsisting over all roads owned
| or operated or hereafter acquired, no matter
whore situated, by the company, including
| telegraph lines, franchises, rolling stock
and property of every description, &c
remain as security for the bonds Of redomp-
tion until all arc paid, embracing
over 5000 miles Of road now held as security
by the government. 1t requires that the
company accepting the provisions Of the bill
shall also accept the provisions of the Thur
man act, voluntarily yielding all questions OF
the constitutionality of said act. Tho plan
further provides that any company may pre-
| pay and discharge tho debt In full ut any
| time, and as an inducemont for such prepay
| mont an abatement of 3 per cent. per annum
| in interest is allowed. The companies arc
! authorized to mortgage their franchises and
| property for the purpose of raising funds to
redeem their bonds of redemption if they
| are able and SEQ ft to do 30. The
sinking fund heretofore established in
| the treasury is continued, and all money paid
in liquidation of the bonds OF redemption
by the companies will be paid into said sink
ing fund; and the secretary of tho treasury is
| authorized and directed to invest said funds
| in interest-bearing bonds or securities, so that
tho government will derive the benefit of the
interest to aid in the payment of the subsidy
bonds at maturity. The railroad and tele.
graph lines are required at all times to be at
the service of tho government at rates as low
as the lowest accorded TO any individual for
like service. A failure for six months to pay
any of the redemption bonds at maturity
renders all of said bonds due and payable.
In order that tho companies may partakC
of the benefit of the proposed plan they mus
accept the same under their corporate seal OF
or before Oct |, 1854.