The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1890-02-17

made now under which every dollar Of the
government with interest will bu paid. II
finds the present security 10 hO statutory
lien on the road commencing three miles
west Of the Missouri river aud extending 10
a point five miles west of Ogden; and on
another road commencing half mile west
of kansas City and extending to point
S9.3 miles westerly. commencing In prni-
RE and ending in one. Ii Is not enough 90
protect the government debt. If II shall not
I've adjusted until Il becomes due, within
Hh,UONOO; while under the bill 20 he To-
ported the security obtained will be twice
the government debt III value and pay
ment according 10 the terms of the bill IL
absolutely certain.
The report of the Central Pacific finds
the United States has for security a statu-
tory lien ON the road commencing at point
five miles west of Ogden and extending 20
san Jose, without terminal facilities nt
either end. made subject to a mortgage 10
secure bonds equal IN amount 90 the orig
inal indebtedness Of the company to tue
United States.
That portion OF the road from Ogden TO
the westerly slope OF the Sierra Ncyadas is
practically bridge. without any local busi-
ness OF any amount.
That roads reaching from the mnin limo
into Nevada do not pay actual expenses.
nAA AAh liANtAiA NtAhAANl VI WV hAA'A
States upon this property is entirely made
quate.
That the foreclosure of the first mort
gage would substantially exhaust IN satis-
faction thereof the entire property, and that
II would be inexpedient for the United
States 10 redeem u from the said first mort
gage or 20 become owner Of the property
through redemption and foreclosure.
The report finds II is expedien', necessary
Rnd practicable 10 adjust and further Sc
cure indebtedness 10 the United States up
on extended time at reduced rate OF inter-
est within the ability of the company 10
pay, upon such terms M 90 advance deyel-
opments OF the country through which said
roads pass, and afford inhabitants trans
portation for passengers and freight.
From the report IL appears that the Cen
tral Pacific has not the ability 90 pay nj all
equal 20 that OF the Union Pacific. but un-
der the terms of the bill 10 be reported IL
can make final and full payment REASONABLY
certain. Tho bill agreed upon in
cludcs within its provisions 10
the Union Pacific railroad company
the Kansas Pacific railway company. cen
trail branch of ihe Union Pncihc railway
company. consolidated under the name of
the Union Pacific railway company. The
Central Pacific railroad company, successor
10 tie Genital pnciiic railway company, of
California, and Western Pacific railway
company.
1t provides for finding the present worth
of the Indebtedness of the Union Pacific
railway company ON July ], 1880, aud for
the payment Ia the United States of that
amount, with per cent. interest. payable
semi-nnnually; also portion of the princi-
pal semi-annually, SO the entire debt viii
be paid in fifty years
II requires that the Union Pacific rail-
way company shall give mortgage on all
it's property of every name aud description,
real, mixed and personal, and also preserves
10 the United States its present statutory
lien.
In the event of failure of the said company
10 accept the provisions of the act there
shall be carried tu the credit of the sinking
fund one. half of the compensation for ser
vices rendered for the government. and in
addition thereto the sum Of f2OO,OOO "A
year, OF seyenty-iiye per centum of the
whole net earnings of the Union Pacific
railroed company. extending also the pro
visionr of tho Thurman aci 20 the banaas
Pacific railway company and Central
branch of the Union Pacific railroad COM
pany; that on failure 10 pay receiver
shall be appointed 90 take charge and
manage and operate the road, branches
and lines of the said company
unlll lrluClllhi anu nlitItht vi inf utDt Suhli
be fully paid.
Section six provides for the ascertainment
of the present worth Of the debt of the Cen
trail Pacific Railway company: then for the
payment of interest nj a rate Of > per cent
per annum, payable semi Annually. and 50
much principal as shnll result IN the pay
ment Of the entire debt in seventy-iiye
years. but In order 10 relieve the road from
too much burden during the next ten years,
the bill requires n mortgage of the entire
property of the Central Pacific Railroad
company. including some very important
roads in California. aud also 10y that section
and "A subsequent one, TINT the Southern
Pncic Railroad company and Central Pa-
cltic shall make the present loas subsisting
between them additional security 10 the
United States for payment of the debt.
Either of said companies may extend
payment OF or refund indebtedness prior TO
that to the United States 30 tho extend of
the pnr value Of such first mortgage bonds,
rate Of interest not 90 exceed per cent.
In the event of any default for ninety
days in the payment of interest or principal
ms required by act, the entire debt shall
Immediately mature. Tho United States
may retain all money due To these com-
punies for security, until installmcnis. prin-
cipal aud interest upon their next muturing,
after such services are rendered, shall be
fully paid.
The company shall pay the dividends.
unless the snme shall have been actually
earned, and unless such company shall
have plid all interest and indebtedness due.
Section Is provides for repeal of the law
requiring tho government directors; also
laws imposing limitations on rights of COM
panies 10 acquire property. extend railroads,
etc.. etc.