New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-03-08
THE AIDED PACIFIC ROADS.
MIR. oUTIIwATTE's BILL REPORTED.

RECOVERY OF THE GOVERNMENT DEBT TIE MAIN
oeJrcr-MR HuyTINGToN's BILL PRESENTED.
WASHINGTON Marcel Tin reporting favorably TO
the House the bill prepared by the House Committee
on Pacific Railroads to secure tie pay neni OF all the
Indebtedness of the Union Pacific Rar"ai company
and the Central Branch, Union Pacific Railroad CON-
pany, to the United States, Chairman Cultivate says
that the important question to be considered III
medaely is how to the repayment of the peo-
pies money.
After long detailed statement OF past legislation
attention Is called TO the provisions Of the present
bin Tables are included In the report showing that
the semlaunua payments of the Union Pacific system
at tn beginning OF each period fixed by the bill VIII
be as fellows 1882 Ss472o0: 1894. Sloo7 ,Oo7 !:
$780, Sll17, 245; 1909, 1164 900; 1929 S1,376.'Oo
The total amounts, principal and interest to be paid
in each period will be Sl6,937,o'O for the hist pc
riod sa1 PAS 500 for the second period S4o'4oo,46
for the third period and S24 $50 for the fourth
period or total OF 100000, $50. OF this -
amount, $50 100000 Will be payments on principal
and $50 O57 ESQ interest payments. The report says
that II clearly appears that the whole amount that the
Union Pacific will pay under the requirements OF the
bill added to the present payment of the sums in the
sinking fund (S7,734 O53l will be Sl1o,741,763 The
report continuing says that the average maturity OF
the debt Of the company July TO- 1897, creditlng
the company with beginning to pay the principal
nine years before is is due. and paying thereon the
of 500 ISL ,553, just deduction OF the same num-
Der OF years after the debt Is due should DO made
when speaking of the actual extension Thus fairly
and properly the extension Is to be regarded as not
more than fifty years less eighteen years or. thirty
two years taking into account the large partial
payments, increasing each payment and reducing the
debt every six months under this plan, the average
extension of the debt whole does not exceed
twenty years
The bill accompanying the report received the
unanimous support Of the Committee. 1t Is long ana
will make about twenty pages 1t is patterned after
the original Cultivate bill which has already been
fully described The most noticeable change is tho
exclusion of the Central Pacific Railroad Company
and h, Western Pacific Railroad Company nom the
aIplcal!on of the bill This was done for the
that the Committee intends to prepare separate bill
to fit the case Of The Central and Western PACING
Another important change is made in the section
Of the Outhwsite bill which provided that the pay
and above interest TO DO made 10y the roads
should be dug the first ten year period Onet third Of
one per upon the whole debt. his Is chansed
by the present bill to one-tenth Of per cent for
the first five years and seven tenths Of one per cent
mcnt. in accordance with the companys suggestion
that the payments be made lighter during The INST
five years and heavier during the second
a section of the Cultivate BILL, which required the
companies to cause suits TO be instituted in the name
vi ,hT h In ar'acted With tIcm for mafeasance or
nave Deeh conls s WIN ii nio ~. - 80. ecctio
which is intended 10 give greater strength 10 inc pur
pose TO- prosecute oheFGG hs @ If 5i ac by
said companies uhe Union Pacific and the Central
Branch shall operate Is a continuing authority from
the said companies TO the Attorney General to prose
any and all persons VINO are or may
be answcrable said corporations, Or TO the United
States stockholders subscribers to stock directors,
officers agents and employees past or present. o. the
aid companies respectively for or by reason OF any
violation of duty said corporations, or violation OF
the criminal law fOI and by reason OF any nl5appr
prati0n OF assets property OF said corporations
res pectivey. any other cause properly remedlabe
at their instance, al the instance OF the United
States
Upon the acceptance Of the provisions of this act
the Attorney General shall forthwith proceed to IN
sttutO and long the United states shall be holder
or owner Of the bonds authorized by this act shall
continue prosecute proceedings at law, or ID equity,
both. shall be necessary to determine whether
any stockhOlder or stockholders, etc, have been
guilty Of any crime punishable by law in their con
DectiOn with said companies"
The other changes made In the original OuthWalte
bill are mot material. of interest
Mr. Huntington e-president OF the central "a
cfc Railroad Company, has submitted TO the House
Committee on Pacific Railroads draft of bill IN.
tended to effect settlement OF the indebtedness OF
that company TO the Government. The draft provides
for determination and allowance of equities bv the
Court of Claims and settlement OF the debt IN 10
years IN semi annual pay ments, bearing Interest al
cent.