Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1890-05-03

rs years. Total sum COS 426 81
The present value OF the debt, July /, 1890, as
calculated under the terms of the bill, is $751;.
| Gag, 5e7 IL, the pas ments for which would
amount to SIZE. 005 1926 90, making the interest
payments SCI, 355, $50 rs
The annual payments now made by this com
pany under the Thurman Act amount to about
$50 900 per year. 1t is believed that by its true
construction, this Act would effect final set
Element for tie debt, as it undoubtedly was in
tended to do at the time of its passage The
supreme Court has declared Tin U. S. VS. C P.
r. r., October. 1850, that ne thurman Act is a
material amendment to Acts of 1862 and
1854, and that the three Acss together comprise
the contract between the Government and CON-
pany. The payments for the bonds and inter-
est BY the Government and BY the company
are quite different. The bonds were issued by
| the United States and are payable to the hold
ers according TO the terms named therein l. e.,
the principal in thirty years and the interest
semiannusly
The obligations as to repayment by the COM
pany are the same only IN the total sum; this is
so issued and delivered to said Company. to-
gether with al interest thereon which shall
nave been paid by the United States" The
time Of repayment was in the original Acts
limited by the maturity OF the bonds but this
was made subject TO the subsequent provisions
providing that 1t might be paid prior TO the ma
turity Of the bonds by the annual application of
5 PSF cent. of the net earning and one half the
charges tor United States transportation. In
1878 the further condition Was made requiring
an annual payment of IS per cent. of the net
earnings, and including the entire charges for
United states transportation; al the same time
the company was excused from paying the debt
70 the United States out of other funds At the
maturity OF the bonds they will be paid and
retired by the United States and interest thereon
viii cease Interest will also then cease to run
against the company. The balance, for which
no repayment is at that time provided under
the existing Acts, will then stand as charge
against the company. until it is paid by the
continued annual amounts provided bv the
Thurman Act. II is believed that so long as
such annual payments are made, there can be
no default charged against the company
Your Board recognize the uncertainty as to
what judicial Interpretation msy be given 10
the still unsettled points In this unique Act Il
remen bers that the Supreme Court was almost
equally divided In considering its constitution
atty and that three of the Justices filed dis
senting opinions. From the uncertainty as 10
the true Interpretation of the law, and to a
greater degree. from the obvious advancement
OF the general interests of the company which
would follow termination Of all disputes with
the Government, we are not disposed 10 unduly
urge what we consider our rights but TO agree
10 any terms OF compromise offered by Con-
| gress, which may be reasonably considered
within the power OF the company to keen.
The Senate bill, as introduced, contains exac-
| tiols which seem to us unjust, and fails to re.
| cognize facts claimed by us as equities. Yet /;
IS not to be expected that as favo able terms OF
| settlement can be secured as would be the case
| II the United States were private creditor and
| all other eircun stances were the same Upou
the consideration OF the bill by Congress, the
Objectionable features may be sufficiently modi
But Whatever form the bill may have. If finally
| passed. your Directors will make any justifable
sacrifice 70 end the existing disputes and secure
q settlement.