Evening star. [volume] (Washington, D.C.) 1854-1972, 1888-01-16
PACIFIC RAuLaoAD DEDr~.
Provisssas % Mr. Oashvvassc's Nm Cor
RefuWAaWR.

Pr0vistSos % Mr. Oashsatsc's nm Cor
Resuaaang.
Mr. ou,hvaite introduced IA the House to-day
bill for the refunding OF the debts of the Pacfnc
Railroads 10 viii differ In some important feat
ures nom his bill IN the Forty -ninth Congress
which was unanimously reported by the commit.
tee to the House. The new bin contains fourteen
sections.
The basis OF the refuadlng scheme Is prescribed
IN section one. The Secretary OF the Treasury
shall ascertain the respective Indebtedness of the
sseral subsidized railroads upon the same pm
ciple a. n the whole sum OF said bonds and inter
est were 20 be paid IN cash July I, isss The CON-
putations are thus 20 be made: To the whole OF
each OF said be. shall be added the Interest
paid or 10 he paid by the Government upon the
same, 50 As 20 assertion tbs Total amounts that
pal and interest paid on the bonds A. their natur-
10y II no payments mad been made thereon by the
companies. From these ascertained amounts
shall De deducted any payments made At any time
before July 1, lsss flnd the present worths OF
tue amounts 50 sscertained as % July I, lsss. Al
the date OF average maturity OF said bonds and
July I, lSss. Deduct from the sums as ascel-
70 the companies' COMPUTING The value n any
uonds In the sinking fund at their market value AZ
Sne uine on such computation as estimated by the
puted shall be deemed the amounts that would be
required 20 b. paid IN cash July I. 1855, 10 dis
Section two provides for the execution and do
livery 10 the Secretary u the Treasury by each Of
said railroads It's mortgage covering all the prop
cry OF the roads Interests of all description In
branch or auxiliary roads, all railroads now owned
or hereafter acquired with their franchlses tele-
sraph lines rolling stock. subject 20 any bona nde
piiof Hen such mortgage Ia secure the bonds and
interest provided by this act. But the roads shall
nave tne right 10 use ana dispose OF all these mort
saHeI interests IN the ordinary and lawful way for
valuable consideration, and not Ia ytolstiba or
dnlnution of the security or lien OF the Govern
WILL WILL, SUI such disposition shall be reported
within thirty days, and the mortgage shall cover
such disposition. -
Section three provides for each company issuing
PONDS each OF $1,000, Tor the present worth IL us
aebt as above a>cert aimed. bear thr.e per cent
interest annually, 10 run Tor rty years the inter
st pay oIe IN January aud June. The secretary
OF the Treasury At the delivery OF the mortssc.
shall receive these bonds in provisional payISest
ynds ISSUED by the United states 10 the
section four prescribes the manner IN wh,c,
ana hnn ~ tne companies shall issue its mortgage
sollualed aud also provides for the new feature az
Ine OIL which avoids the creation OF sinking fund
kach company seml-annually for ten wears com-
meneing January I, lssa shall nav in adft,ian "a
lhe interest then due on Its lndebteiness one
onira OF per cent OF the whole sum tor which IL
saNe us ponds anu mortgage; and for a period OF
zen years commencing January I, ls.sa each com
pahy shall pay as Aforesaid two-thir,is OF 1 u.r
1ss anu a .Sr ameny years commencing January
4, lsut each company shall pay aforesaid per
eenl' ana Tor Zen years, commencing January 4
1873 per cent OF SAID whole sum OF lis bonds
section i've provides that upon the continuance
Tor ninety days OF any default In the paytnents
prescribed by the act the whole debt Shall mature
4, me option Of the President Of the United
Section six provides for the statutory liens az the
original acts OF ls02, ls,I4 and 1878 Remaining IA
~, anu Also provides that under the present
act me President may save the Government
security when Necessary by removing liens and
.e Government shall enjoy the rights OF subroga-
uoh; ana, further, In case Of removal OF any
Zen or obligation, the company shall make reinl-
ourseinent or ITS whole Indebtedness become due
g., se e. seven permits and requires the compan-
les 10 refund their Indebtedness authorized by sec
tloh zen OF the act OF July, ls6 at lower rate OF
interest, and the lien OF the tnite1 states shall
continue 70 be subordinate 10 that securing such
refunded debt, but the extension shall be {or NOT
longer Than NIFTY years. and the lien shall be only
upon tne original property, and there other
slrlctions. such as requiring the maintenance OF a
edness.
Section eight is an ironclad prohibition upon the
oeiaratlon OF any dividends until all the various
oongatlOns OF the companies as TO all these ORE.
scr1bed payments are discharged
section nine describes the method OF acceptfnv
the provisions OF the act by the railroads.
Section ten compes the companies 10 empower
s "a a''lne General 10 institute all such suits
as ne may deem necessary against former
directors, oncers or agents, who have been guilty
vi Oa y, Of duty or transportation OF
Section eleven imposes a charge OF IS per cent
OF the net earnings OF the road failing 20 accept
inc act or complete its adjustment before July i.
Section twelve abolishes the once OF Government
director and provides for the companies Transact
Ing their own business, and dssolves the present
unsatlsfactory and Improbable association OF the
government with these corporations
section thirteen places upon the Attorney Gen-
eral the enforcement OF the act and requires bIs
annual report. '
section fourteen is a saving clause holding ALI
government rights and remedies unimpaired ana
repeal 1'"'
The fourth section is the striking feature OF the
OH. IL requires the companies 20 begin seml-
annual payments on the principal OF the debt at
lhe END OF the first six months after the adjust
ment, ana TO continue such payments every six
months thereafter, doubling the amount O, them
at tne END OF the frst ten years Increasing them
again AZ the end OF the second ten years and again
at tne emo OF the second twenty years IN such a
manner as 10 provide for the payment or eyery
dollar OF the debt In the nfty years A the debfS
are not que under the present law for ten years-
the extension is for only forty years and rnstbe,
matlcaliy giving them ten years after the debss
become due IN consideration for the ten years,
payments before the debts become due ana NJ.
curing mi-snnual payments the extension A
Out an average extension OF less than twenty
years
stephen Heller, the distinguished pianist ana
musical composer Is dead, aged seventy -nve years
"Grandma" Garfield Is consf autiy prowincI