The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-03-08
OUTHWAITE'S DEBT BILL.
A Favorable Report Made by the
Committee.

WASHINGTON, March TN the House
to-day Mr.. Cultivate, of Ohio, from the
Committee on Pacific Railroads, reported
favorably the bill extending the time for
the payment of the government debt by the
subsidized roads comprised within the
Union Pacific system. 1t was put on the
House calendar. This is known as the
"Outhwaite bill"
The bill received the unanimous support
of the Pacific Railroads Committee. 1t is
very long, max ing about twenty pages 1t
is patterned after the original Cultivate
bill, which has already been very fully de-
scribed. The most notable change is the
exclusion of the Central Pacific aud West
ern Pacific companies from the application
of the bill, which is confined solely to the
Union Pacific and its central branch
TO PREPARE ANOTHER BILL
This was done because the committee
intends to prepare a separate bill to fit the
cases of the Central and Western Pacific
Companies. Another important change is
made in the section of the Cultivate bill
which provided that payments over and
above the interest to be made by the roads
should be during the first ten year period,
one-third of l per cent. upon the
whole debt. This is changed by
the present bill to one-tenth of 1 per
cent. for the first five years, and seven
tenths of l per cent. for the second five
years of the same ten-year pavement in ac-
cordance with the Union Pacific Companys
suggestion that the payments be made
lighter during the first five years and
heavier during the second that was con-
templated by the original bill.
PUNISHMENT FOR MALFEAsANCE.
Section II of the Cultivate bill, which re-
quired the companies at the request of the
Department of Justice to cause suits to be
instituted in the name of the companies
against persons who are or may have been
connected with them, for malfeasance or
other illegal conduct is displaced by the
following new section, which is intended to
give greater strength to the purpose to pros
ecute offences; acceptance of this act by
said companies (the Union Pacific and the
Central Branch shall operate as con-
tinuing authority from said compa-
MES to the Attorney General to pros
ecute in the name of the companies
respectively, by the appropriate process of
law, or in equity, or by BOTH any and all
persons who are or may be answerable to
said corporations, or to the United States
as stockholders, subscribers to the stock,
directors, officers, agents and employees,
past and present, of said companies reSpec-
lively for or by reason of any violation of
their duty to said corporation, or violation
of the criminal law, or for and
by reason of, any misappropriation of the
assets or property of said corporations re-
spectively, or any other cause properly
remediohle at their instance, or at the in
stance of the United States. Should any
sums of money be recovered under the pro
visions of this section, the same shall be
placed to the credit of the proper company
as payment or account on the highest mum.
bered bond or bonds outstanding under
the provisions Of this act. Upon acceptance
of the provisions of this act the Attorney
General shall forthwith proceed to institute,
and so long as the United States shall be a
holder or owner of bonds authorized by this
act, shall continue to prosecute proceedings
at law, or in equity or both, as shall be
necessary to determine whether any stock
holder or stockholders of said companies or
either of their, officers, agents or employees,
past or present, or other parties have been
guilty Of any crime punishable by law in
their connection with said companies. The
Attorney General shall ps Osecute said pro-
ceedings to final judgment and execution,
and in case of the collection of any moneys
they are to be disposed of as herein pro-
vided.n
The other changes made in the origin al
Cultivate bill are not material or of IN
terest.
PRESENT WORTH OF THE DEBT.
The bill provides for the ascertainment of
the present worth of the debt of the compa-
MES, principal and interest unpaid, on July
/, 1888, on the basis that such money is paid
on that date in cash would be worth to the
government per cent simple interest for
the period to run until it shalt become
due under the present law. Three per cent
bonds are to lie issued to the government
for the amount SO ascertained, which are to
be paid by the companies within fifty years
Tables are included i'll the report showing
that the semi-anLual payments by the I'M
ion Pacific system at the beginning of each
period fixed by the bill will be as follows:
1898. o4d ,2UU
1914 Observation-Disclosures. IU0l,U01
loJJ. I,llG,240
l9O9 ...'...'.''''.'' '.......-. ...... lO4,SpU
lJSJ ..-.-.... ............ l,oiO0UU
THE TOTAL TO BE PAID.
The total amounts, principal and interest,
to be paid in each period will be S16, 1897, $40
for the first period, S21 ,24S, 800 for the
second period $40, 400, 400 for the third
period, and $24, ,420,S5O for the fourth
period, or total of $1O3, ,OO7, $50 OF tins
total amount $52, ,950, 900 will be payments
on principal, and $5O,057, $50 interest pay
ments
The report says that under this system of