The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-01-29

July OF each year from 1897 to 1906,
both inclusive, and thereafter at the rate
OF per cent per annum, payable semi
annually on the first days of July and
January in each year, beginning on the
first day of January, 1907, and continuing
until said bonds shall be fully paid. Said
bonds shall at the time of the execution
and delivery OF said mortgage be delivered
to the Secretary of the Treasury, and shall
be received by and on behalf of the United
States as provisional payment OF SAID ag-
gregate amount arrived at.
$50 long as any of said bonds belong to
the United States. said company shall,
semi-annually, on the first days OF Janu-
ary and July of each year, Tor the period OF
ten years, commencing on the first day of
of January. 1897, pay to the Secretary of
the Treasury in addition to the interest
which shall then be due on its indie bted
ness, one-twentieth of 1 per cent of the
whole sum for which it gave its bonds
and mortgages, and for period of ten
years. commencing on the first day of jan
ary, 1907, said company shall semi-annually
pay to the Secretary Of the Treasury, in
addition to interest which shall then be
due on its indebtedness, one-fourth of
per cent of the whole sum; and for q
period of twenty years, commencing the
1st day of January, 1917, shall pay seven
twentieths of per cent of the whole sum !;
and for a period of forty years, COM
mencing the 1st day of January, 1887,
half of 1 per cent; and for a period of
twenty years, commencing the 1st day of
January, 1857, per cent.
Whenever in the opinion of the Presi-
dent of the United States it shall be
deemed necessary for the protection of the
interests of the United States in respect to
its lien, mortgage or other interest in any
property of several companies named in
this act, upon which lien, mortgage or
other incumbrance paramount to the
right, title or interest of the United States
IN the same property or any part of the
same may exist, and be then lawfully
liable to be enforced, the Secretary of the
Treasury shall, under the direction of the
President redeem or otherwise clear off
such paramount lien, mortgage or other
incumbrance by paying the sums lawfully
due in respect thereof out of the
treasury, and the United States shall
thereupon become and be subro-
gated to all rights and securities
thereto pertaining to the debt, mortgage,
lien or other incumbrance by virtue of
which such payment shall have been
made; provided, that whenever it shall
become necessary for the United States to
pay off any part OF any such paramount
incumbrance as aforesaid, the Secretary of
the Treasury may require the payment of
all money paid for such purpose with
costs, expenses and interest, and upon the
failure of the company to make such re-
payment with all costs, expenses and in
terest thereon, within one year after being
notified so to do, the whole Indebtedness
of said company to the United States shall,
at the discretion and option Of the Presi-
dent, become due and payable at any day
thereafter, and all rights OF the United
States shall thereupon be enforced"
No money is TO be paid roads on account
of services rendered the Government until
the bonds are redeemed. No railroad divi-
dends shall be paid stockholders until the
roads have paid their interest on the first
mortgage bonds.
Huntington's lobby was actively at work
to-day. Huntington himself was busy.
Reilly of Pennsylvania Ia statesman out
of a job is here. and had talk with the
railroad magnate tonight. He has prob
ably been employed as a lobbyist. ]. c.
Stubs is also here, accompanied by hi
secretary, w. G. Martin. John Boyd was
in conference with ex-Representative (and
ex-Senator) Blair tonight. Another lob
byist was consulting with Chairman
Powers.
Representative Mcguire SAID tonight
the committee would crush things"
Mr.. Boatner of Louisiana will probably
be the only member of the Pacific Roads
Committee who will vote against the
funding bill. He was a member of the
committee in the last Congress and stood
with Mcguire. He thinks the committee
report will be almost unanimous for the
refunding bill. 81 am the last of the
Mohicans," said he to The CALL CORE
spondent to-day.
The House Committee on Pacific Rail-
roads met at 1 o'clock this afternoon. Mr..
Thurber of New York spoke in general
way for twenty minutes in favor of fund
ing the debts of the Pacific railroads, but
made no new or specially interesting point
in favor Of the proposition, except that he
was an entirely disinterested person, look
ing to the public welfare.
OHoi'So IL L WScN Vi new DIX, COOL,
smooth and eloquent, next addressed the
committee for an hour and half in favor
of funding the debt of the Central Pacific.
He expressed the belief that the com
pany could pay its debts to the United
States Government in 100 annual install
ments, with interest at the rate of per
cent. He said the company could not
give the Government a first mortgage on
any of the railroad property, because it
would have to arrange with it's private
creditors for the extension OF their first
mortgage claims and must give to those
creditors the same security which they
now hold; but he said the company would
give the Government mortgage upon all
OF its property, including its ferry and ter
miTal facilities at Oakland, the California
and Oregon road from Roseville to the
State line with also the road from Lathrop
to Goshen, which additional securities he
thought would greatly improve the Gov
ernment's position as a creditor. He said
that the earnings of the Central Pacific
road tor the last five years had ranged
from little over 81, ,0O0, 900 in 1891 down to
$4,000 in 1894, and estimated that the