Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1890-02-17
ONLY GIVE EN- TIME
Bills to Settle the Pacific Rail-
way Debts.
VERY EASY PAYMENTS DEMANDED.

The Union Pacific to Have Fifty Years
and Per Cent Interest. and the Gen.
trail seventy-hve Years and Per Cent.
Present Management of the First
Named Road Highly Prsised-Isereased
Governments seeurfty-Nontan. sen.-
tors-omeiaI New. Items
WASHINGTON CITY, Feb l7-The special
committee on Pacific railroads, after many
hearings. thorough investigation and care
full consideration, has finally accepted the re-
ports OF Senator FRYE on the Union Pacific, and
Ssntor Davis on the Central Pacific, and
Agreed % q ball Saturday The report
on the Union Pacific reaches the CONCLUSION
that the policy OF the road - 10 branch
lines has been and l. wise. that there Is no
evidence Of any purpose on the part Of the
company 20 surrender that portion Of their
road over which the governmsnt has had
q statutory heo-on the contrary every
thing tends to satisfy any candid person that
no such purpose exists; that this Is cspa-
pay IL debts, requiring only. like every
railroad. time in which to pay; that the
present. management Is honestly trying %
sfect fair adjustment with the govern
ment; that the interests OF tte government
and the railroad company viii Be promoted
by . settlement, and that one can Be made
nov under which every dollar Of the gov
eminent debt, with interest, vii b. paid
The Prescott Government Security.
II hnds the present se -urity 10 be = stArn-
tory lea on q road commencing three miles
wet Of the Missouri river extending 20 3
point nve miles west OF Ogden. and on
mother commencing one-haf mile west Of
Kansas City and extending 20 point So
miles westerly, commencing N prairie and
ending In one; not enough 20 protect the
government debt, If it shall not be adjusted
until u becomes due, within 5000. coo:
While under the bill 10 be reported the -
curly CHAINED will De twice the govern
Dsnt debt IN value. and the payments. ac-
c1rdIng 20 the terms OF the bali, absolutely
certain
situation 90 TO the Central Pacific
The report on the Central Pacific finds
that the United States has for security q
statutory lien on . road commencing at a
point i've miles west of Ogden and extending
70 san jose, without terminal facilities at
either emf, made subject 70 mortgage to
secure bonds equal IN amount % the original
Indebtedness OF the companies 20 the United
States; that that portion Of the road from
Ogden 70 tie westerly slope Of the Sierra
Nevadas Is practically only a bridge without
any local bushes OF any amount, that the
road reaching from the main hne into
Nsvada DO not now pay their actual ex-
Psn-cs; that the present. security Of the
United states upon tins property j. entirely
inadequate; that foreclosure Of the first
mortgage would substantially exhaust, In
satisfaction thereof tue entire property. and
that it wO1il b. ineXpeiisnt for the United
States 70 reSi-em u from said first mortgage,
or - becoms the owner OF the property
through redemption and foreclosure
The Measure Proposed.
Ths bill u he reported includss within its
provisions the Union Pacific Railroad COM
psny, The Kansas Pacific Railway company.
the Central Branch Union Pacinc Railroad
company. Consolidated under the name OF
The Union Pacific Railway company; the
Central Pacific Railway company, SUCCESSOR
20 the Central Pacific railroad company Of
California, and the Western Pacihc Rail-
road company. Il providss for fin ling the
present worth Of the indebtedness OF the
Union Pacific Railway company on the
nrst day Of July, 1880. and for the payment
% the United States Of that amount with s
~ csuI interest ~eDl-annuAllY. also q pOr-
ton Of the principal semi-annually, 80 that
the entire debt snail be paid in tifty years
In the case Of the Central Pacific its present
worth Is to be aScertained and then IL Is pro
vided that the company pay interest at 2 per
cent. with 30 much Of the principal as may
Be necessary 70 secure the total extinguish-
msnt Of the debt in -eventy-hve years
Mortgages and Penalties
In both case IL is provided that the gov
eminent shall take mortgages on ali the
property OF both roads, and preserve the
governments present. statutory hens II the
Union Pacific rejects this bill the govern
ment will hereafter retain one-half Of the
compensation due for services, and also in
sist on receiving the sum of -. OOO, 900 per
year, OF IS per cent. Of the roads net earn
ings, on the principal Of the debt: failure to
pay the above will throw the rad into the
hands Of q receiver 70 manage II until the
government claims are fully paid Ii case
Of default Of payment of the Central Pacific
for ninety days the whole debt shall immedi-
atsly mature An important provision Is
that neither company shall pay any divi-
dsnds unless they have been earned, and all
interest and matured debt shall have been
paid, and penalties are provided for viola
ton Of the act.