The herald., 1895-02-22
HUNT|NGT0N'S LAST STAND
The New Pacific Roads Bill Goes
to Congress
IT is Mr.. REILLY REVISED
The Only Object Seems to Be Defeat
OF the Government.
IT is Mr.. REILLY REVISED
One Section Prohibits the United States
From Paying Dividends to
the Stockholders

| Washington, Feb. 21.-An outline of
! the proposed new Pacific railroad bill is
! as follows:
Section 2 provides that if either the
Union Pacific, the Central Pacific or the
Central branch of the Union Pacific shall
within twelve months pay to the United
States an amount equal to the principal
of the subscriptions of the United
States, 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, to-
gether with the lien and mortgage of the
United States on the railroad so far as it
shall be required to secure to the assignee
the payment of the portion of the indebt-
edness to be assigned, "but without re-
course to the United States in any event."
and all the moneys and securities in the
sinking fund shall be delivered to the
company or trustees, providing the in
debtedness so assigned shall be extended
not more than fifty years, at rate of in.
terest not exceeding five per cent. -
The balance of the Indebtedness to the
United States, being the interest due to
the date of the payment of the principal,
shall be extended for fifty years and paid
in semi-annua installments and for it the
companies shall issue bonds TO the Gov
ernment.
Such companies may issue to the pur-
chasers of such claims its negotiable bonds
payable in fifteen years at interest at per
cent, that is the purchasers Of the prin.
cpal of the Government debt.
Section 5 provides the Government lien
shall remain in full effect, but enforceable
as security for the payment of indebted
ness due the United States.
Section provides for the payment OF
the first mortgage bonds by renewing
them by new issue to run fifty years
with interest at rate not exceeding per
cent and secured by the first mortgage, the
same as the bonds they are issued in re-
newal of.
Section prohibits the companies
from paying dividends so long as the
bonds authorized by the act are outstafld-
ing unless they shall have been actually
earned or the company has paid all its OBJ
legations to date under the bill or unless
the earnings, after deducting all interest
accrued but not payable at the time of the
declaration of the dividends warrants it.
ANA no tlNluenuS over per cent are 10
be paid unless equal amount of excess
of per cent is paid upon the principal
of the Government debt. The companies
are to cooperate in making track connec-
tions with all the roads that join them
and to exchange traffic on equal shares
and devices to evade this shall be unlaw-
full.
Section 7 provides the companies,
when required in writing by the Depart
ment of Justice, shall institute suits at
law or equity against any parties for mis-
appropriation of assets, the suits to be
conducted by the Attorney General in the
name of the companies, and the sums re-
covered 10 he arrliod 70 +,o ---,arf OF
ml aa amy excess io he
Companies.
Ihe majriue nrowde Tor ore
I9suro 1r tt Cow. oi ie-
t ndn RNly III.
met witn more fl elmmittaa than
rredeoeasor. aluarty oenosrs
as tuay Wlil e.nl.n 5 taeH s.pa.t that
heoutome OF t.. ii 5onao viii
e ac cart'mU IH Union Pae ic
n1 Fu eut a N.Y. at
ae Central Iar come into le
lauo ~ rse Gn ur ally
of lteas urou Niil De