Kansas City daily journal. [volume] (Kansas City, Mo.) 1892-1897, 1895-02-22
REILLY BILL As AMENDED.
1T SUGGESTS A PLAN or SETTLING
DEBT OF Pacific ROADS.
Government to Be Paid the Amount of
the Principal nj Once, and Interest
Due to Ic Extended for
Period of FIFTY Years.

Washington. Feb. 2i.-The house COM
miitce on Pacific roads met to-day and
decided TO report a new bill. which Is based
on the Reilly bill, but has certain changes
recommended by Chairman Reilly Mt the
last meeting. The amended bill will pro-
via" that the principal or the government
debt shall he paid at once, and that the
hrst mortsagc bonds and the interest paid
upon bonds by the government and due to
the government at the date the hill takes
effect be extended ana paid In installmonts
through a period of nifty years. The cN-
tended hrst mortgage bonds viii bear in
torcst atii per cent. The extended interest
VIII be secured by practically third lien
on the property. subsidiary to the claims of
the parties VINO advance the funds to pay
the principal of the government bonds, ana
who VIII be entitled, under the bill, to
per cent interest on their advances.
The committee voted not to make the
now hill public until II had been printed
An outline Is as follows:
Section . provides that II the Central Pa
ciNr or either the Union Pacific or the
Central Branch Union Pacific shall, within
twelve months. pay to the United states
9h amount equal to the principal of The
secretary of the treasury shall convey To
the company or its trustees SO much OF
the Indebtedness OF the company to the
United states as will be equal to the sum
paid to the United states, together with
the lion and the mortgage of the United
=
hc required to secure to the assignee the
payment of the portion of the indebtedness
to be assigned, but without recourse to the
United states IN any event ana an inc
moneys and securities In the sinking fund
shall he delivered to the company or
trustees providing the indebtedness SO
assigned shal. be extended not more than
ifty years at a rate of interest not exceed
ing per cent
The balance Of the indebtedness to the
United states, being the interest due to the
date of the payment OF the principal, snail
A. To- f., N,HN uI
scmi-anuual installmpnts. and for 1t the
shall issue bonds to the govern
of such claim its negotiable
bonds payable In httGeu years with inter-
est mt per cent CHAT is, the purchasers
Section 3 provides the government lien
shall remain in fun erect, but enforceable
AS security for the payment of the indcbt- |
edness due the United states.
Section provides for the payment OF the |
first mortgage bonds hy renewing them by
tcrcst at a rate not exceeding per cent, |
and secured by the first mortgage the same |
ls are the bonds in renewal of which they |
are issued.
Section prohibits the companies from
paying dividends so long as the bonds au- |
thorized by the act are outstanding unless |
they shall have been actually earned or the |
company has paid all its obligations to |
late under the bill, or unless the earn |
but not payable at the time of the deClar- |
alton of the dividends warrant 1t. And no |
ilNlutnuH over per cent are 10 ne P,ilu un- |
less an equal amount of excess of per |
'ent Is paid upon the principal of the gov
srumcnt debt, The companies are to CO. |
operate in making track connections with |
III roads that Join them and to exchange
rattle on equal shares, and device to eYHdc |
his shall be unlawful.
Section I provides the companies when
'equired in writing by the department Of |
Justice, shall institute suits at law or equi-
y against any parties for misappropria-
he attorney general in the name of the
'ompdnieS, ana sums recovered TO he APP
llied TO the payment of bonds and any eX-
'csS to be paid to the companies
The remaining sections provide for fore
'losure by the government in case of de-
ault under the terms of the original Reilly
ill, and meet with greater favor in COM
nittcc than its predecessor. The minority |
MEMBERS say they will contend in their re-
,ort that the outcome OF the plan, If adopt
ID VIII be the continuance of the Union Pa
lie under its present management. ana |
hat the Central Pacific VIII come into the
lands of the government practically |
worthless property because IL Will he with
ut terminal facilities. Objection was made
n committee to the wording of the section
# the bill which stipulated the Union Pa
tiic or the Central Pacific could accept
Is terms ana the word has been amended
o "aud'
Representative Harris. OF the minority.
las in contemplation a bill somewhat in
me with the present plan, which will au-
horiZe tho payment OF the principal of the
government debt, apply the sinking fund
o the first mortgage debt and consolidate
he remainder of the first mortgage bonds
o secure their payment. Chairman Reilly
alked to-day with Speaker C'risp about n
ay for the committee and the sneaker
Nrressed a willingness to grant another
ay If the committee felt assured the new
III had a chance of adoption, The OPP
oneutS of the bin may make their Grhr
Fatt F1lt .i.fF Fit.fN