The San Francisco call., 1896-03-31

pany which issued the same, unless really
earned, nor unless the company shall have
paid all the interest due on the debt hav
Ing lien prior TO the Government and all
matured installments of the principal and
interest then due on the Government debt,
nor unless said earnings shall warrant
such dividends.
Dividends of more than per cent shall
not be paid unless an amount equal to
such excess over per cent shall be paid to
the treasury to be applied to the redemp-
ton of bonds. Fines and penalties are
provided for any action subverting this
requirement. The act is to go into effect
upon the written acceptance of its
terms being filed with the Secretary
OF the Treasury on or before January l,
1897, for the Union Pacific Railroad, and
within three months after the passage in
the case of the Central Pacific, subject,
however (as to the Central Paciticl, to the
adjustment of the debt as provided for.
The Central Pacific is required to change
the terms of the lease of its road to the
Southern Pacific Company. The latter
company must guarantee the payment by
the Central Pacific Company during the
and installments on the principal of the
bonds provided for in this act. The modi-
fed lease shall be worded, that should the
Southern Pacific Company agree to ter
inmate it before the payment of the debt
it shall guarantee that the Central Pacific
Company pays such interest and install
merits while any of such bonds remain un
paid.
The lease shall require that sums
amounting to about $2,439000, now
credited in the treasury to the Central
Pacific Company for services rendered on
non-aided lines, portion of which is now
in the judgment in favor of the Southern
Pacific Company, shall Immediately be
applied TO the cancellation of the bonds
as herein provided for.
A duplicate original of the modified
lease shall be filed at the Treasury Depar,-
ment by the Central Pacific. Should the
lease be abrogated by the parties thereto
the principal of the bonds shall, at the
option of the President, mature at once.
As long as the bonds are owned by the
Government any of the railroad COM
panies may redeem the whole of them.
The United States will sell any of the
bonds at any time for not less than their
face value and accrued interest.
When this act is accepted the Govern
ment directors are wiped out and all the
laws relating to the collection of any per-
centage of the net earnings or to the with
holding or application of any sums due to
the Government other than provided for
in the bill shall end.
The railroad companies must transmit
dispatches over their telegraph lines, and
mails, troops, munitions, public supplies
and stores whenever called upon, allowing
the preference to the Government at all
times. and the Government shall pay
reasonable price, not greater than what
would be charged private parties.
The Attorney General shall enforce this
act and shall report to the President
every year Tor oftener) thereon. which re-
port shall be transmitted 10 Congress-
This act is to be subject to alteration or
repeal at the hands of Congress, and moth
ing contained in it shall impair any right
or remedy in the premises now existing in
favor of the Government.
The provisions of the Union Pacific Com
pany require that its mortgage shall en-
brace all property, terminals, land and
everything pertaining to it, real personal.
or in security. Interest and principal on
its bonds are arranged on the same basis
as is shown in the foregoing for the Cen
tral Pacific Company. 1t may issue GER
tain amount of stock, provided that from
the proceeds OF the same all existing
bonds upon ITS property or lands or hold
ings be extinguished and all mortgages
cancelled.
Such new mortgages as are authorized in
the bill must be new lien on the property
of the railroad covered by existing mort
cages and the second mortgage authorized
in the bill to be made to the Government
shall be junior and subject to no other lien
than the new first mortgage. The Union
Pacific may execute its bonds under date
of January l, 1897. to mature January l.
1947. Interest is not to exceed per cent
ana principal not to exceed the
face of the amount of the out
standing first mortgage bonds prior to
the lien of the United States on subsidized
parts OF its railway, and those secured by
mortgages constituted for liens on parts OF
some or on terminal properties equipment
or upon lands of said company and those
secured by mortgage upon the Omaha
bridge. aggregating $54, ,731, 900.
Bonds must be secured by first mort
gage upon all properties terminal or other
wise, and all the then unsold land grant
lands and all the then outstanding lands
and all other property shall be included in
such existing mortgages of the Union Pa
elf Railroad Company and upon all of its
rights, titles, privileges and franchises.
The Union Pacific may issue its pre-
ferred stock to not more than its present
stock; but no dividends shall be paid upon
it over per cent nor except out of such
net or surplus earnings as shallbe acquired
by the company in that year of the divi-
dend and as shall remain after the pay
ment of operating expenses and interest
upon new first mortgage bonds and on the
fixed annual sums required to be paid upon
its second mortgage bonds.
Should the railroad and property of the
Unicn Pacific Company contemplated to
be included in the new mortgage be sold
under pending foreclosure proceedings, or
other proceedings, but subject to all the
existing liens of the United States, or
parts thereof, the purchasers of said rail-
wav and other property who shall have