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

on the LIST day of February in each wear. the one
half OF The compensation Tor services hereinbe-
fore named. rendered for the Government by
said Union Pacific Railroad Company, not ap-
Piled IN llquidstion of interest and in addition
thereto, the company shall, on said day in each
year: pay into the Treasury. to the
OF Ss9o,tU0, or so much thereof as
shall be net essary to make the per cent. of the
net earnings of its said road payable TO The
United States under said Act OF 1852 and the
whole sum earned by it as compensation for
services rendered for the United States together
with the sum by this section required to be
PAID, amount IN the aggregate to % per cent
| OF the whole ct earnings of said railroad COM
pany, ascertained and defined as hereinbeiore
provided, for the year ending on the SIS. day of
December next preceding.
| Section 5. That whenever il shall be made
satisfactorily to appear to the Secretary of the
Treasury by either of the said companies that
40 per cent. of its net earnings as hereinbefore
Qenned for any current year are or were insult
ticient TO pay the interest for such year upon the
Obligations OF such company in respect of which
| obligations there may exist lien paran cunt to
that OF the United states and that such interest
has been paid out of such net earnings SAID Sec
| rotary is hereby authorized and it is made his
DUTY to remit for such current year so much of
| the y per cent. of net earnings required to be
paid into the sinking fund, as aforesaid, as may
have been thus applied and used in the pay
ment of interest as aforesaid
Section 6. That no dividend, shall he voted
made, or paid for to any stakeholder or
stockholders in either of said companies re-
| spectiyely at any time when the said company
shall be in default in respect of the payment
either of the sums required as aforesaid to be
paid into said sinking fund.- or in respect of the
| payment OF the said per cent. of .he net earn
lngs or IN respect OF interest upon any debt the
] lien OF which, or of the debt on which it NAV
accrue, is paramount to that of the United
States and any officer or person who shall vote,
declare, make, or nay, and any stockholder OF
any of said companies who snail receive any
such dividend contrary to the provisions of this
Act, shall be liable to the United States for the
fhnrN AF Id IL
| be paid into the sinking fund. And every such
officer, person. or stockholder who shall know
| ingly vote, declare, make or pay any such divi-
dend, contrary to the provisions OF this Act.
shall be deemed guilty OF misdemeanor and
ON conviction thereof, shall be punished by a
| fine not exceeding $4,000, and by Imprisonment
not exceeding one year.
Section z. That the said sinking fund so estab-
lished and accumulated shall, at the maturity
| of said bonds SO respectively issued by the
| United States, be applied TO the payment and
and proportion of each of said companies in
said fund, and of all interest paid by the United
States thereon, and not reimbursed, subject to
| the provisions of the next section.
section S. That said sinking fund so es.ab-
! lished and accumulated shall. according to the
! interest and proportion of said companies re-
| Spectively therein, be held for the protection
| security and benefit of the lawful and inst
| holders of any mortgage or lien debs of such
companies, respectfully. lawfully paramount to
the rights of the United States and for the
claims of other creditors, if any lawfully
| chargeable upon the funds so required to be
paid into said sinking fund according to their
respective lawful priorities, as well as for the
| United States according to the principles of
equity to the end that all persons having any
| cain upon said sinking fund may be entitled
| thereto in due order; but the provisions of this
section shall not operate or to be held to impair
| any existing legal right, except in the msnuer
| in this Act provided, of any mortgage lien or
other creditor of any OF said companies re-
| spectively. nor to excuse any of said conpapies
respectively from the duty of dischargiIg out
OF other fund =, its debts to any creditor except
the United States
States from any of said companies respectively
whether payable presently or hot and all sums
required to be paid to the United States or into
the Treasury. Into said sinking fund under This
| Act, or under the Acts hereinbeiore referred to-
or otherwise, are hereby declared to be lien
| upon all the property, estate, rights and fran
| chises OF every description granted and con-
veyed by the United States to any of said com
panies, respectively or jointly and also upon
the estate and property, real. personal and
mixed, assets and income of the several rail
road companies, respectively, from whatever
| source derived, subject TO any lawfully prior
| and paramount mOrtage, lien or claim thereon
But this section shall not be construed 10 pre-
vent said companies. respectively from using
| and disclosing of any of their property and as
| sets in the ordinary, proper and lawful course
\ OF their current business, In good faith and for
valuable consideration.
Section 10. That it is hereby made the duty
| OF The Attorney-General OF the United States to
enforce, by proper proceedings against the said
| several railroad companies respectively or
jointly, or against either of them and all others
| all the rights of the United states under this
Act and under the Acts herein sefore mentioned,
and under any other Act of Congress or right of
! the United States and in any suit or proceed
| ing already commenced or that may be here
| after commenced, against any of said compa-
| MES, either alone or with other parties in
| respect of matters arising under this ACE or
| under the Act of rights hereipbefore mentioned
or referred to- it shall be the duty of the Cou
| 10 determine Tue very night of the matter with
out regard to matters OF form, joinder or parties
| multiiariousness or other matters not affecting
| the substantial rights and Guties arising out
| OF the matters and Acts hereinbe;ore stated and
referred to1
Section H. That if either of said railroad
companies shall fail to perform all and sjnpu
lar the requirements of this Act and of the Acts
herelnbefere mentioned. and of any other Act
relating to said company to be by it performed
\ tor the period of six months next after such
performance may be due, such failure snail
operate as a forfeiture of all the rights priyi-
lege, grants and franchises derived or obta ined
by 1t from the United States and it shall be the
| duty ofthe Attorney General to cause such for
| felture to be judlcially enforced.
Section u That nothing in this Act shall be
construed or taken in any wise to affect or i'm
pair the right of Congress at any time hereafter
| further to alter, amend or repeal the said Acts
hereinbefore mentioned and this Act shall be
| subject to alteration. amendment, or repeal as
in the opinion of Congress, justice or the public
welfare may require. And nothing herein con-
| tanned shall be neld to deny, exclude or impair
any right or remedy in the premises now exist
ing in favor of the United S ates.
Section Is. That each aud every of the pro-
visions of this Act contained sha severally
and respectively be deemed taken and held as
in alteration and amendment of said Act of lS62
and OF said Act OF 1861 respectively, and of both
said Acts.
Approved May Z, 1878.
THE MATTHEWS BILL OR THE RAILROAD COMMIT
TEES BILL.
A bill to create a sinking fund for the liquida-
N nnf DC Ofl-ar s.nA . =
Central Pacific Railroad Company of California
and the Western Pacific Railroad Company ana
the Union Pacific Railroad Company, under
and in pursuance of the Act of Congress exit
| tied IAN act to aid in the construction of
| railroad snd telegraph line from the Missouri
liver to the Pacific ocean, and II insure to the
Government the use OF the same for postal. mil
1tary and other purposes" approved July l,
| 1852 and the Acts amending the same or sup
Elemental thereto, and for the settlement of the
claims of the Government on account of said
| bonds.
Be 1t enacted by the Senate and House of Repre-
sentdtiues Of the United States of america in Con-
gress assembled, That in order tt establish sink
| ing fund tor the purpose of liquidating the
| claims of the Government on account of the
| bonds advanced under said Act of July ], 1862,
| and the Acts amending the same or supple
mental thereto, to the Central Pacific RrilrOad
Company of California, and the Western Pacific
Railroad Company, and TO the Union Pacific
Railroad Company, the secretary of the Treas
| ury of the United states is hereby authoriz d to
carry to the credit OF a sinking fund for the
Central Pacific Railroad Company. corpora
ticn organized and existing under the laws of
| the State of California, the successor by con-
| solidaton of the said Central Pacific Railroad
| Company of California and the Western Pacific
Railroad Company and the credit of sinking
| fund for the Union Pacific Railroad Company
| the amount due, or which may be due, the said
| companies respectively, for the carriage and
| transportation of the mails, troops munitions
of war, supplies. and public stores for the Gov
| eminent, under the Acts aforesaid, up to and
| including the 31st day of March, which, if not
amounting at said date 10 the sum Of 81 .600,c coo,
shall be made up by the respective companies
| to that sum each.
| Section q That the said Central Pacific Rail
| road Company and the Union Pacific Railroad
| Company sha each pay into the Treasury of
| the United states, to the credit of said sinking
| fund, either in lawful money or in any bonds or
| securities of the United States Government, at
par, annually the sum of 81 900 600, in equal
| semi-annualiy installments, on the LIST day of
April and October in each year, commencing on
| the LIST day of October, 1878, and continuing
such payments until the LIST day of October in
the year 1890. Interest all sums placed to the
credit of the sinking fund shall be credited and
| added thereto semi-annually at the rate of 6 per
| cent per annum. Any balance remaining due
| from either of said companies at the date last
| aforesaid, after deductiug the amount standing
| to the credit of said sinking fund from the
amount of said bonds together with all interest
| thereon which shall have beeI paid by the Uni
ted States, and interest on the principal of said
bonds IRON the maturity thereof, respectively,
IN the day of October A ID. 1900. shall be