New-York tribune., 1885-01-29
PACIFIC RAILWAY DEBTS.
A NEW SETTLEMENT BILL IN The ohNAi ~
1Hr uOusE BIIL NEUTRALITY-SUSPICIOUS. FOR lsso-
ING AND PAYING BONDS COVERING THE
DEBT OF THE GOVERNMENT.
,puT IRIBVNEI


len Ioood tor with a good deal OF interest The bill Is
he same in principle with the Garland BILL known aS 'ho
Sixtv-Year Funding BILL and Is offered as SUBSTITUTE "
the Thompson BILL which passed the House lat Session
The latter simply extended the provisions OF inc ih
man act to the Kansas Pacific Central Branch ana IN
craased the percentage of earnings to be appeo o
the sinking fund account from % to 80. 30 ana 4o per
cent 1t settled of the disputes between the gov
.rpuent and the roads, left all the old questions
op ~ The substitute clears away all the ola causes Vi
contention divides tbs entire debt into 12O parts one oi
which 1. payable each six months and increases the
security of the Government by including in It's lien all
the railroad lines owned controlled by the racine
roads The entire debt is made over ana payaDie upoh
the default of the companies upon single payment
The bill meets the approval OF Messrs Edmuuds hoar'
Garland and Bayard those gentlemen heretofore
have held somewhat divergent views on railroad queS
tons their agreement would indicate its passage by the
senate without serious opposition. The failure OF INC
Thurman bill to effect settlement satisfactory 10 eilher
the Government the roads, and the present cou''o
of the sinking fund. make action by the present
Congress Indispensable
The provisions of the bill are as follows:
The first section authorizes and directs the secretary
OF the Treasury ascertain the amount sI tne M
KSnsas Pacifc railroad Company the Central Branch
of the Union Pacific Railroad Company thc Hlo1 IN
and Pacific Railroad Company. the Central Pacific Rall
road COMPANY and the Western Pacific Railroad Com
pany, which the subsidy bonds OF inc Cteu Staes
we're advanced in aid OF the construction of the Pacnc
railroads and branches of the lst day Of APRIL 1852
upon the principle as If the whole sum 3 s1 sa1
bonds and paid and to be paid by the Illeu
states thereon and not heretofore repaid by credits on
account thereof 10 be paid to the United otses ~
cash said day and the said sums shai DC conhhi;S h;S
and ascertaned follows a. From the sums aSd wCT or
shall on April l. lsS3 have accrued as htriS u y" sad
payahe down To that day by the United staes GU sa
bonds ana not already reimbursed 10 the Cna rIng
there shall be deducted the amounts IN live s9 rnn
mnd properly applicable 10 the Respective h CON.
panies (2 The balance remaining IS To ne aqeu " .
sum of the principal of said bonds attrouldDle
lively to the Central Pacific Railroad company ahs @ o
Union Pacific abroad Company III the selueilcht
matter provided for 3J And there shall aso oe "
said principal sums the amount ., t.o ma u so s 10
crue he paid 10y the United states on sara sous %
states for principal and interest pdld on shu oeis d,
their maturity If no further payment or
spect thereto after April l. lsS1 ~ me Ptstut VIZ.
of said total sums shall then he computed without coh
nounding on the basis that money is worth per cchtu
interest per annum and the iaI sums 50 coinp'Vu H &
ascerta shall be deemed the sans that wouu De p"
in casn April l. lss5 by said companies IL pa!
Under section 2 both the Union Pacific Railway
Company and the Central Pacific Railway Company
are authorized to deliver to the secretary OF the
ury 120 several bonds of redemption caeh ne"ng 1ne
date Of April l, 1ss5, to an aggregate amount
equal to the balance Of the and ndto,sa"eos elsS Ss
said bonds shall provide for and bear interest
at the Of per centum per annum for tGe Iie e,Sn &
bond has run and each OF SAID bonds sal pe oT t
equal hundred and twentieth part Oh t1e DSaTo ~ 40 10
such debt and interest so ascert neI hon n.G s n
per cenum per annum, In lawful money OF the Unitea
$50 and so on on the first DAYS October and April
thereafter until all said bonds shall have neen iuy P%u
specyciy when paid shall thereupon cancelled aud
Surrendered to said company No payment ior
70 the Government By these roads is 10 DO hduo uA,'
the bond next maturing shall be fully paid rut tno or
gaton to pay SAID bond 50 to be executed 70 tns w.
States by said companies ana the ooHEa'I"i oL 'ho
United states to pay Tor services shai DC ueeou o'He
Section provides that the property Of kind and
description OF the companies shall he ana cIn!p as Sc
curty for the payment OF the bonds OF redemption
mini the sane are fully paid; provided. however,
that the Central Pacific and Union Pacihc companies
shall he entitled at any time to prepay or anticipate te
payment and discharge the redemption IOius' anu W
that it shall be lawful for these companies to as
pose Of their bonds TO an aggregate ho' to
amount OF their said respective bonds OF redemption
which may remain then oatstanding ana uhpaid p tO
getner with the amount OF the rst moitg@:e pVn, o
said companies outstanding 10 bear such rate OF lhsrcs
dent and to secure the by mortgages upon their
respective railroads h
and subordinate to said lien and security
OF the United states until the same shall be eNtngusAed
states said statutory lien aud security IN me
United states shall thercupon cease ana he OF no ehcct
@ t. from ssid bonds Interest On the amount
thereof after the date of such payment to the ma
tury thereof the rate OF per centun per annn ana
Territory the security OF the United States shall be
made By mortgage or other suitable conveyance OF
such form, tenor and effect as shall make the security
valid and legal one under the law OF snch state OF
Territory The companies shall not dlspose o any oI
their property assets otherwise thah IN the Ordinary
aud proper course OF its current business WIihou.
Ge consent r Of the rTfsde bd Inc dvdsnG. aSs
shall Dc paid by either the companies unless the same
shall have paid to the United states ths OF all
maured indebtedness then due and payable under this
ousy maufed vii ah secured by Lien paramount to
that Of the United States.
SOME PRIVILEGES AND PENALTIES.
Section provides that so long as the companies
give the Government preference in the use OF their
roads and telegraph lines for all the purposes mentioned
in tho OF the act Of July 1862, and all
amendstory of said and shall make punctua pay
the said bonds OF redenpon other or further
sums shall be demanded or required OF the company
and none Of the penalties or liabilities pro.
mded u for IN sad aos or .m,orc.d any oI ot
the companies while such due performance OF all duties
and punctua payments shall continue. but all such pay
iBcnt-, requirements penae, ana liabilities snail be
suspended and not deemed to be due sr payable owing
incurred untl default Of OF the provisions OF the
aeisrelating oand III force respecting said companies
shall be made IN which case they shall stand revived
ana continue IN force in the same manner and TO the
same extent as II this act had not been passed.
Section provides that the acceptance Of this act shall
| moved Nav 2 is7sJ TO aid in the construction
OF railroad and telegraph line from the Missouri River
section provides that a failure for six pay
any OF the redemption bonds as the same shall become
due payable shall at tho option Of Congress of
the President OF the United states be deemed taken and
held to make all the said bonds due and PAYABLE and all
the rights and securities OF the United states may be
Section provides the way In which the mpapies
shall signify their acceptance of the act. When the
cepances filed and the settlement IN this act pro-
vded being completed the Secretary OF the Treasury
directed to sell any held In the sinking fund
for the said companies ana said settlement shall DO com
peted on before october, $50.
Section provides that If the companies fall TO accept
the provisions OF the act. or sad
| the time provided, there shall be charged
| and collected from such company or companies
so failing from and after July l. 1888, 30 per centum
of their annual earnings, 10 be asceralncd as pro
vded III section OF the act OF May T. 1879 In lieu OF the
25 per centu provided for u said act and to that end
said act OF May 1873, commonly called the sinking
fund act and any and all amendments or notifications
thereof, to and The are hereby extended to the
Kansas Pacific Railroad Company to the sioux city ana
Pacific Railroad Company, aud 10 the Central Branch OF
| the Union Pacific Railroad Company; and said act
| and all amendments or notifications thereof
shall henceforh apply to said corporations equally
| as 10 those specifically named in said act.
| Section provides that in the event OF the monaco