Los Angeles daily herald., 1888-01-08
PACIFIC RAILROADS.
no Commissions Recent
Reports.
H0uH NEEDED LEGISLATION.

- NAEObO AEUAOAA AVN
supplemental Report Showing
Bllis Considered Necessary
to Regulate Affairs.
With the majority report Of the Pa
Cfflc Railway Commission are sub
mated for the consideration of Con-
meB. four bills, to all intents and
vpxposes, identical In their provisions
roaating respectively to the Union
Pacific, the Central Pacific, the cen.
I'll branch of the Union Pacific, and
ne Sioux City and Pacific railroad
aempanies. The text Of the bill to
adinst the indebtedness Of the Union
Pacific, which serves as = sample OF
- others, is as follows:
4 hill to amend an act entitled "an
act TO aid in the construction of a
railroad and telegraph line from the
Missouri river to the Pacific Ocean,
and to secure to the Government the
nse Of the same for postal, military
md other purposes" approved
July 1, 1852 also to amend an act
approved July 2, 1864; also ali act
approved May z, 1878, both in
amendment Of the said first mem
Aioned act and to provide for the
settlement OF the claims growing
oas Of the issue Of bonds to aid III
she construction ofthe Union Pacific
nnd Kansas Pacific railroads, and
to secure to tho United States the
payment OF all indebtedness OF said
companies.
Be 1 enacted, by The Senate and House
ef Representatives. of tho United States
cf Amsric0, in Congress assembled:
6BCFIoN 1. That the Secretary of
fhe Treasury be and he is hereby au-
tA0r;ued and directed to ascertain the
nmOunt of the respective indebted
Aees Of the Union Pacific Railroad
Company and the Kansas Pacific
-Railroad Company, to which the sub
sidy bonds N the United States were
advanced in aid OF the construction OF
7Aeir respective railroads as OF the LIST
day of July, 1888, upon the same
principle NJ if the whole sum of tho
honds advanced to said companies,
end the interest paid and to be paid
BY the United States thereon and not
hesctofore repaid by credits on ac-
esunt thereof, were to be paid TO the
-Uuited States on said day, and the
nai1 spn shall ba computed and as
sortained as follows:
First-Add to the principal of the
sid bonds the interest paid and to be
paid thereon by the United States up
70 the maturity thereof.
S0cond-Deduct from this sum the
amount of the interest which shall at
: the time Of such computation have
been reimbursed to the United States
by the payments and credits which
appear In the bond and interest sc-
SQUAT of the said companies with the
United States.
Third-Compute the worth Of the
snnount 80 found as of the 1st day of
July, 1858, on the basis that money is
worth per cent per annum, by dis
noanting the said amount at 3 per cent.
per annum compounded semiannual-
y for the period between tho date of
sserage maturity of the said bonds
xnd the first day OF July 1888. From
no sum SO ascertained, there shall he
Aeducted the amounts in the sinking
4and properly applicable to the said
ssmpanies, computing the value Of
xny bonds in said sinking fund at
9ABir market value at the time Of such
Gsmputation, as estimated hy the Sec
retaEy Of the Treasury. The final sum
- computed and ascertained shall be
dhomrd the sum that would be re-
Qairod TO be pad in cash on the said
NAL day Of July, 1888. by said COM
Danjos Tor the purpose of completely
Exchanging their entire debt to the
Enited States.
$50. 3. That the Union Pacific
Railway Company, successor to the
Union Pacific Railway Company and
fhe Kansas Pacific Railway Com
Rany, be and it is hereby authorized
q tq make, execute and deliver to two
e4stees to be appointed as hereinaf-
+ feE provided, its certain indenture of
mortgage, which shall be on date the
e. INST day Of July, 1888, converting and
#owbFacing the entire property of tins
&eaid Union Pacific Railway Company,
|tE0al, personal and mixed of whatso-
19er nature and wheresoever stu
|zneBd. The said Union Pacific Rail
|SWAy Company shall also assign to the
E1aid trustees all its right, title and
( nterest in any bonds, or stock, or
lnnds Of branch lines or auxiliary
aunpanies in which the said Union
tAcific Railway Company has any
mtercst. A proper and complete de-
scription and inventory Of all the
Hsperty offered by eaid mortgage shall
- prepared and fled with the Secre-
|*nxy Of the Treasury. The said mort
Aeo and the property therein de-
nEibed shall be held by the said trus-
Bcs a. seclrity for the payment OF
~ principal and interest of tho
onds issued hereunder and author
pod by this act. But this section
ball not be construed to prevent said
Dmpany from using and disposing Of
NJ OF its property or assets in the
pdinary, proper and lawful course of
current business, in good iaith and
- valuable consideration, and not in
ISOLATION and diminuition OF the Sc
lrity and lien of the Government;
provided. That every such disposition
& any sto 'ks, bonds or other securi-
- owned by said company, whether
q sale. pledge or otherwise, shall be-
ported to the Secretary of the Treas
~ by the said company within
tirty days after such disposition has
en- made, and that the bonds,
scks, or other obligations acquired
sh the proceeds of tho property so
6*posed OF, shall III like manner and
4h the same power to dispose Of the
ne, be subject to the lien Of the
4 mortgage, and that true and
per descriptions and Estssof the
- shall be, from time to time, pre-
ID and fled with the Secretary of