St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-02-17
Railway company, and to the central
branch of the Union Pacific Railroad
company; that

company; that
ON FAILURE TO PAY.
receiver shall be appointed to take
charge of, manage, and operate the
road, branches and lines of said COM
pany until the principal and interest of
the debt should have been fully paid
Section e provides for the ascertalnment
OF the present worth Of the debt of the
central Pacific Railroad company; then
for the payment of interest at the rate
OF 2 per cent per annum, payable semi
annually, and OF so much OF the princi-
pal as Shall result in the payment of the
entire debt in Seventy-five years. But
In order to relieve the road from too
great burden during the next ten
years, when 1t is necessary for it to
make somewhat extensive i'm
provements, 1t capitalizes for that
time One-half of the 2 per cent to he
paid. The bill requires by section seven
a mortgage of the entire property of the
Central Pacific Railroad company, in-
Guiding some very important roads in
California; and, also, by that section
ana subsequent one. that the South
ern Pacific Railroad company and the
Central Pacific shall make the present
lease subsisting between them addi-
tional security to the United States for
the payment of the debt. Section eleven
provides that either of the said COM
panies may extend the payment of or
refund Indebtedness prior to that of the
United States to the par value of such
Z hrSt mortgage bonds, the rate of inter-
est not to exceed per cent. Section
twelve provides that in the event of any
default for ninety days in the payment
OF interest or principal, as required by
the act, the entire debt
: SHALL IMMEDIATELY MATURE;
also for record of the mortgage by the
secretary. OF the treasury in conformity
with the laws OF the various states and
territories where the property is situa-
ted. Section 13 provides that the United
States may retain all money due to these
companies for services until the in
stailments Of principal and interest
upon their bonds next maturing after
such services are rendered shall be
fully paid. Section IA provides that the
companies shall pay no dividends un-
less the same shall have cen actually
earned. and unless such company
shall have paid all interest and
matured Indebtedness due. with
penalty for the violation of the
act by any director OF officer.
Section IL provides for authority to use
the name of said company or companies
AstiiioI ohJ WIN 10 vi UCCi
director, officer, agent or employe of
said companies for the enforcement of
any cause of action arising or which
may hereafter arise out of any violation
of duty, any appropriation of assets or
any other act in respect to which
the department of justice shall
aliege that it desires such action; and
that any sums OF money recovered in
such suits shall go toward the payment
of the Indebtedness to the United
States. Section Is provides for the re-
peal of the law requiring government
directors; also of the laws imposing
limitations on the rights of the com
pany to acquire property, extend Its
railways. ETC., etc. Section 19 makes it
the duty of the attorney general to en-
force the provisions of the act and to re-
port annually to the president, which
report shall be laid before congress.
The bill will be reported to the senate
this week, and the committee will ask
that it will be made the special order
for consideration in the first week in
March.