Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-05-11

GERS OF NeDraSEa, William WINDOW oil
Minnesota, Stanley Matthews OF Ohio. S.
| of North Carolina, W. H. Barnum of Con-
necticut, L. @. c. Lamar of Mississippi,
David H. Armstrong of Missouri, and my
| self as Chairman.
The bill was prepared and reported by
one whose personal integrity, whose trans
cendent ability as a jurist, will be ques-
| toned by none. l refer to the then Sena.
| tor Matthews of Ohio, now distinguished
and honored Justice of the Supreme Court
of the United States from that State.
THE CONTEST IN THE SENATE AT THAT TIME
Was not one of funding bill or no funding
bill. On the contrary, every member of
| the Senate realized the importance the
| imperative necessity of some legislation
| looking to funding of the Pacific railroad
| Indebtedness; all without exception were
in favor of one or the other of these two
bills. The contest was between the bill re-
ported by Judge Thurman, of the Judiciary
Committee, and which finally became the
| law, and the bill reported from the Com
mittee on Railroads by Senator Matthews
| Each member of the Senate supported one
| or the other of these two bills. The Sem
ators who supported the Matthews bill
were then, as it is the custom with many
| and delight of some in certain quarters
now, denounced as railroad Senators, labor
| ing in the interest of the railroads and in
| opposition to the best interests of the Gov
eminent.
l propose, therefore, to compare these
two bills, and, in the calcium light of the
history of the past, / shall leave the un-
prejudiced taxpayer, the honest journalist,
| the impartial Judge, and the ir-minded
| throughout the realm 10 judge as to which
1 n yC Is ha hos lo,,la tod f,
| protect the National Treasury and to secure
to the United States, on proper terms and
at a proper time, the complete reimburse
ment OF every dollar owing to the United
| States, or which was to become due from
| the aided Pacific railroad companies And
| that there may be no misunderstanding or
| mistake in regard to the real character of
these two bills. propose to INCORPORATE in
| my remarks and place in juxtaposition the
Thurman Act and the Matthews bill IN er-
| tense | ask that they be read.
| The Secretary read as follows:
THE THURMAN FUNDING ACT.
An Act to alter and amend the 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 Govern
ment the use of the same for postal, military
and other purposes, approved July l, 1862, and
| also to alter and amend the Act of Congress ap-
proved July 2, 1864, in amendment OF said first
named Act.
| Whereas, on the LIST day OF July. A. d. 1862
Congress passed an Act entitled IAN Act to aid
| in the construction of railroad and telegraph
| line from the Missouri river to the Pacific
| ocean, and to secure to the Government the use
| OF the same for postal, military, and other pur-
pOses;' and
| Whereas afterward, on the ID day of July. A.
! ID. 1864 Congress passed an Act in amendment
| OF said aforementioned Act; and
| Whereas the Union Pacific Railroad Com
| pany, named in said Acts, and under the
authority thereof, undertook to construct a rail-
way, after the passage thereof, over some part
OF the line mentioned in said Acts: and
Whereas, under the authority of the said two
Acts, the Central Pacific Railroad Company of
California, corporation existing under the
laws of the State of California undertook to
| construct railway, after the passage of said
| Acts, over some part of the line mentioned in
said Acts; and
/ said Central Pacific Railroad Company, have
| heretofore issued, by way of loan and as pro-
vided in said Acts 10 and for the benefit of said
company, in aid of the purposes named in said
Acts, the bonds of the United States, payable in
thirty years from the date thereof with interest
at per cent per annnm, payable half yearly,
/ to the amount of S25, SS5, 100, which said bonds
have been sold in the market or otherwise dis
posed of by said company; and
Whereas the said Central Pacific Company
has issued and disposed of an amount Of its own
| bonds equal to the amount SO issued by the
l United States, and secured the same by mortg-
age, and which are, if lawfully issued and dis
posed of. prior and paramount lien. in the re-
| spect mentioned in said Acts, to that of the
| United States, as stated, and secured thereby;
and
| Whereas after the passage of said Acts, the
4 Western Pacific Railroad Company a CORPORA
| ton then existing under the laws of California
| did. under the authority of Congress. become
the assignee of the rights duties and obligations
of the said Central Pacific Railroad Company
| as provided in the Act of Congress passed on
| the Sd of March, A. ID. 1865, and did, under the
authority of the said Act, and of the Acts afore-
said. construct railroad from the city of san
| Jose TO the city OF sacramento, in California
and did demand and receive from the United
States the sum OF 81 ,970,560 of the bonds of the
| United States, of the description before NEIL
| toned as issued to the Central Pacific Company
and in the same manner and under the provis-
| ions of said Acts; and upon and in respect of
the bonds so issued to both said companies, the
United States have paid interest to the sum of
| more than thirteen and half million dollars
which has not been Reimbursed; and
Whereas, said Western Pacific Railroad Com
pany has issued and disposed of an amount of
| its own bonds equal 10 the amount SO issued by
the United States to it. and secured the same by
mortgage, which are, il lawfully issued and dis
| posed OF, a prior and paramount lien to that of
the United States, as stated and secured thereby
and
Whereas said Western Pacific Railroad Com
| pany has since become merged in and consoli-
dated with said Central Pacific Railroad Com
pany, under the name of the Central Pacific
| Railroad Company, whereby the said Central
Pacific Railroad Company has become liable to
i all LDe DurCeDS, duties ana Obligations before
resting upon said Western Pacific Railroad Com
! pany: and divers other railroad companies
| have been merged in and consolidated with
said Central Pacific Railroad Company /; and.
| Whereas the United States. upon the demand
of the said Union Pacific Railroad Company,
have heretofore issued, by way of loan to It and
as provided in said Acts, the bonds of the United
States, payable Ill thirty years from the date
thert OF. with interest at per cent. per annum,
| payable halfyeary. the principal sums of
which amount to 81, ,5l2; on which the
United states have paid over SIC, 900 000 interest
| over and above ali relmbursements; which
! said bonds have been sold in the market or
| otherwise disposed Of by said corporation and
Whereas said corporation has issued and dis
posed of an amount OF its own bonds equal to
the amounts so issued to 1t by the United States
! as aforesaid and secured the same by mortgage
and which are. if lawfully issued and disposed
| OF. prlor and paramount lien, in the respect
mentioned in said Acts, TO that of the United
States as stated and secured thereby ard
| Whereas the total liabilities exclusive of in
| terest to accrue) TO ali creditors including the
| United States, of the said Central Pacific Com
| pany. amount in the aggregate TO more tn an
$40 100000, and those of the said Union Pacific
Railroad Company to more than SSS,000, 00J;
| and
Whereas the United States in view of the in
debtedness and operations of said several rail-
road companies respectively, and of the disposi-
ton of the respective incomes. are not and can
not, without further legislation be secure in
their interests in and concerning said respective
railroads aud corporations, either as mentioned
Whereas a due regard TO the rights of said
several companies respectfully, as mentioned in
said Act of 1852. rs well as just security to the
United States i'll the premises. and in respect of
| all the matters set forth in said Act. require
that the said Act of 1862 be altered and amended
as hereinafter enacted and
Whereas, by reason of the premises also as
well as for other causes of public goot and jus
tice, the powers proyid. and reserved in said
Act OF 1874 for the amendment and alteration
thereof ought also to be exercised as hereafter
enacted. Therefore,
| Be Il enacted BY the Senate and House OF Repre-
seatdtres OF the United States Of america in Com
gress assembled That the net earnings mentioned
in said Act OF 1892, of said railroad companies
respectively, shall be ascertained by deducting
from the gross amount of their earnings respect
lively the necessary expenses actually paid
within the year in operating the same and keep
ing the same in a state of repair. and also the
in discharge of interest on their first mortgage
bonds whose lien has priority over the lien of
the United States, and excluding from consider
ton all sums owing or paid by said companies
respectively for interest upon any other portion
OF their Indebtedness; and the foregoing pro-
vision shall be deemed and taken as an amend
ment OF said Act of 1864, as well as of said Act
of 1862. This section shall take effect on the
30th day of June next. and be applicable to all
computations of net earnings thereafter but it
shall not affect any right of the United States or
of either said railr ,ad companies existing prior
thereto.
Section g. That the whole amount of COM
pensatiou which may. from time to time, be
due to said several railroad companies respect.
lively for services rendered for the Government