The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1884-04-15
Railroad Legislation.

man sinking fund act, have pra
pared majority and minority re-
port, TO be submitted to the tul
com mites tomorrow. The former
will be signed by Jordan and Viii
son, of Iowa, and the latter by
Thompson. In each instance tht
new bill wi ! be submitted. Ths
measure prepared by the msjori J
proposes to extend toe provision q
the Thurman act TO the Kansas Pa
cific road. 1t further prov des tina
the Secretary of the Treasury shall
withhold from the Central Pacific
| Union Pacific, Kansas Pacific. anC
the central branch of the Uniou
| Psclfic railroad companies, all pay.
ments for services which may have
been rendered or may be hereafter
rendered by any or all of said com
panic, In the transportatio n OF
mails, troops, munitions of war, and
public stores for the Government
over any and all portions
Of lines OWNED by said companies
respectively not aided or subsid zed
By DO Ids OF the Uni ed States and
that upon either of said companies,
filing with the Score airy of the
| Treasury its written consent and
agreement that the Secretary of the
Treasury may withhold said pay
Raents due and to b come due here,
| after for services so rendered and 10
be hereafter rendered upon such
non-aided portions of lines so owned
by them. The Secretary Of the
T easury is author zed and directed
as consideration and agreement 10
allow the companies interest upon
payments so withheld from the time
they become companies at a certain
rate per can't per annum, and allDw
the same rate of interests up, N pay
ments hereafter withheld. The
Secretary of the Treasury shall KEEP
a separate account with each of the
companies, of money so withheld,
and to be withheld, together with
interest allowed on the same and on
a final settlement with the COM
panies, they shall be respectively
credited with the amount of money
so withheld from them and the in
tereSt thereon. The bill further
provides that the Secretary Of the
Treasury shall be authorized to in
vest Ia the sinking fund of any of
the companies in the first mortgage
bonds o. any Of said companies, the
Secretary of the Treasury may al
low them 8 per cent interest from
the time OF payment into the sink
Ing fund. In the report accompany
ing the above, the majority say in
palt: The Thurmal act seems TO
US to be the best law yet devised for
the protection of the int: ests Of
government in relation to these
roads, and we thought it best to act
upon the principles on which
it was passed, and to apply
it as far as practicable and Just to
other roads; and will not make any
amendments which would make
companies disposed again to test it's
C0nstiiutlonallty. The financial
condition OF the Kansas Pacific is
such that we feel justified in ineist~
ing that the Thurman act shall lie
extended 10 it, and that it shall be
required to pay 70 Per cent. of its
net esrnipgs-the same rs the Cen
Eral Pacific and Union Pacifc-into
the sinking fund, The com mittee
is Of opinion that government has
no right TO retain compensation for
transportation of mails, troops, etc,
over non-aided portions Of the road;
and to settle the controversy which
exists between the government and
these companies, We insert a sec.
ton providing that upon the cOm-
panies filing their consent to
the retention Of such compensation
the Secretary Of the Treasury shall
allow interest on the amount so
retained. The question of deduct,
ing amounts paid for new equip
ment from gloss earnings is con-
sidered by the committee as O, a
judicial character, and no attempt
is made to legislate upon it. Of
Thompson's bill the majority say:
"It would seriously cripple the
efficiency of the roads and prevent
the construction of feeders and
branch roads, which are necessary
to the development of the country
anu ooCCOS6Aut MoanSCnCut VI tEo
roads," Railroad Commissioner
Armstrong submitted to the full
committee a plan extending the
time OF payment to sixty years.
and interest to be paid In
120 semi-annual installments, the
first at the passage of the bill. Of
this the sub committee says it !,
doubts its jurisdiction to Inaugurste Il
so radical change in the policy of ;.
the government in relation to the
roads. 1t is more than probable,
however, that something of this
kind would have to be done sooner
or later. Thompson's bill declsr,
ing what shall constitute net i
provides that no de- 8
duction snail be allowed for
equipments. Itfurthrr provides that
the secretary of the Treasury shall
be allowed to invest in sinking funds ,
all bonds of subsidized roads, in fist !:
mortgage bonds Of said companies, i
Or in United States bonds or securi. i
ties in his discretion; or he may, !,
with the consent OF T. e companies,
apply the same to extinguish the in I.
5erest on subsidy bonds, government {
IN rafupd fine conoo Of apU time -, !