The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-06-19
THE HOUSE.
Further Conference on the Postofflce Bill
Debts of the Pacific Railways.

Further Conference on ths Postoffice Bill
Debts of the Pacific Railways.
WASHINGTON, June ia further conference
was ordered on the postoffice bill, and Messrs.
Towashend, Holman and Horr were appointed
on the part of the House
The House refused to consider the Ohio and
Mississippi contested election cases, and pro
ceeded to the consideration of the Pacific rail
road bill, known as the Thurman act. An
amendment of the bill extends its provisions to
the Kansas Pacific, the Sioux City G. Pacific and
the central branch of the Union Pacific. 1t al
lows the investment of the sinking funds of the
companies in their own first -mortgage bonds or
in any United States bonds or securities, or they
may be applied to the extinguishment of inter
est on the subsidy bonds 1t requires one-haf
the annual compensation for government ser
vices to be carried to the sinking fund, and also
the annual payment into the sinking fund
of the following sums: Central Pacific compa-
ny and Union Pacific company, So, 900, 900 each;
Kansas Pacific company, 100000; central
branch of the Union Pacific $3.50, 900; Sioux
City and Pacific company, $3.50, 900, or as much
of such sums as will make the total annual pay
ment to the sinking fund equal to 50 per cent of
the net earnings of the respective companies.
In case the residue of net earnings is insufficient
to pay interest on the first mortgage bonds, an
amount necessary for that purpose may be re-
mitted. The companies are required to pay into
their sinking funds. on or before July l, 1885,
the following sums less the amount due them
for government services: Central and Union
Pacific, each, 5000 900; Kansas Pacific, 5000, 900;
Sioux City and central branch of the Union Pa
citic, 100000 each. 1t forbids pay
ment of dividends while the companies are
in default in respect to these requirements.
The sinking funds are to be applied, under sec
ton 5, to payment of the subsidy bonds at
maturity, and under section 81, for protection
and benefit of first mortgage bondholders. The
18th section declares that failure on the part of
any companies to comply with these require
ments for six months shall operate as forfeit
ure of franchise
The substitute offered by the minority of the
Pacific railroads committee provides for the eX-
tinguishment of the debt due the government
by the issue by the company of sixty-year re-
demption bonds.
Speeches were made by Messrs. Throckmor-
ton, Thompson. Post, Jordan, Cassidy and
Hewitt, of New York. The latter said he would
move to recommit the BILL with instructions di-
recting the Sec. etary Of the Treasury to report,
on the first Monday in December, plan by
which the act of May Z, 1873 should be ex-
tended so that the additional payments
to be made mad BY the railroad compa,,
interest, should certainly be paid at maturity,
or at the expiration of any extension the Secre-
tary might deem necessary to be made. What
he asked was that the House should do with
these companies what every business man would
do with debtor short of means-nurse the
debtor and give him opportunity to pay his
debt, instead of crushing him.
The discussion continued by Messrs.
Anderson, Laird, Bedford and Sumner of Cali
fornia
Mr. Thompson, having charge of the majority
report offered ali amendment making the ag-
gregate payment required of the companies 55
per cent instead of 30.
The previous question was ordered and the
House took a recess until 10 o'clock to morrow