Springfield daily republic. [volume] (Springfield, O. [Ohio]) 1887-1888, 1888-01-17
Mr.. OUTHWAITE'S BILL.
he IS DETERMINED THAT THE SUO-
SIC!ZEO ROADS
Mast Discharge Their obligations to the
Gosernmeut a. Rapidly as they Are
Able TO do so-FuIi Details Of How This
10 to bs Done.

! WASHINGTON, January l1.-Mr. Outh'
! waite has introduced bill in the House
providing for the refunding Of the debts of
the Pacific Railroads. The basis of the re-
| funding scheme is outlined in the first sec
| tioE of the section. Under it the Secretary
of the Treasury is Z" ascertain the indebt-
edness of the subsidized roads, upon the
| same principle a. if the bonds and interest
| were to be paid in cash on July LIST, lSss.
To the whole OF the principal of the bonds
is 10 be added the interest paid or 10 be
! paid by the Government upon these bonds,
/ so ..asato ascertain the total amounts that
would have been due the Government Tor
principal and interest paid on the bonds ut
| their maturity If no payments had been
made thereon by the companies
| From these asccrtained amounts shall be
| deducted any payments made at any time
| before July lst, IssS Find the present
worths of the amounts 10 ascertained as OF
July LIST, issS, At three per cent per annum,
! for the period between the date of average
| maturity of said bonds on July lst, lsSs
/ Deduct from the sums as ascertained the
amounts of the sinking fund applicable to
! the company in computing the value OF
any bonds in the sinking fund at their
| market value at the time OF such computa-
ton as estimated by the Secretary OF the
| Treasury The final sums - computed
| be required to be paid in cash July lst
1883. 10 discharge the Government debts OF
these roads.
Section four requires the companies TO
begin semi-annual payment of the Princi-
pal of the debt January lst, 1889. and to
continue such payments every six months
thereafter in such a manner as to provide
for the payment of every dollar Of the debt
in the fifty years. Each company" the
arn,of,r f,p
years commencing January l, 1852 shall
pay in addition TO the interest then due on
its Indebtedness, one-third Of per cent of
the whole sum for which it gave its bonds
and mortgage; and for a period OF ten
years commencing January l, 1899, each
company shall pay as before said two
thirds Of l per cent; and for ~ years.
commencing January !, 1873, each company
shall pay ~ aforesaid, per cent; and for 10
years commencing January !, 1920. two per
cent Of said whole sum Of its bonds"
Section seven Ie.mits and requires
the companies 10 refund their in
debtedness, authorized by Section
ten of the act Of July, 1854,
at q lower rate Of interest, and the lien of
the United States shall continue TO be
subordinate TO that securing such refunded
debt, but the extension shall be for not
longer than fifty years and the lien shall
be only upon the original property, ana
there are other restrictions, such as requir
ing the maintenance of a sinking fund to
pay off this extended prior Indebtedness
Section eight is an iron-clad pro-
hibition upon the declaration of
any dividends until all the vari-
Gus obligations Of the companies Is
to all those prescribed payments are dis
charged.
Section ten compels the companies to en-
power the Attorney General 10 institute all
such suits as he may deem necessary against
former directors, officers or agents who
have been guilty of violations Of duty or
misappropriation of assets of the companies.
Section eleven imposes a charge of IS per
cent. of the net earnings of the road failing
to accept the act or complete the ad just-
ment before July l. iSSS.
Section twelve abolishes the office OF Gov
ernment Director and provides for the COM
panies transacting their own business, and
dissolses the presc mt unsatisfactory and un-
profitable association of the Goyernment
with these corporations.
Section fourteen is saving clause, hold
ing all Government rights and remedies un-
impaired. and retains the right Of Congress
70 alter, amend. or repeal.