The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-01-29
But There Was First a Public
Session of the House
Committee.
HUNTTNGToN's MEN AT WORK
They Make Elaborate Statements That
Are Easily Picked to Pieces
by Mcguire.

WASHINGTON, D. c., Jan. 2S.-The
House Committee on Railroads after its
session to-day went into secret session.
Every member was pledged to secrecy.
1t was decided to send to Secretary Hol1e
Smith for his opinion of the bill intro
duced by Representative Smith of Illinois,
the member of the Pacific Roads Commit
tee who last year supported ReilIy's bill.
Representative Smiths measure will be
the one adopted by the House committee,
and will in all probability be passed
through Congress.
After dealing with the Union Pacific it
provides that the Secretary of the Treas
ury be authorized and directed to ascer-
tain the amount of the respective indebt-
edness of the Central Pacific Company of
California and Western Pacific Railroad
Company on the first day of July, 1896,
upon the same principle as if the whole
sum of bonds and interest paid and to be
paid by the United States thereon and not
heretofore repaid by credits on account
thereof were to be paid to the United
States in cash on the said day. and said
sum shall be computed and ascertained as
follows:
"First-The whole of the principal of
said subsidy bonds attributable to each of
said companies shall be added to the
interest paid or to be paid by the United
States upon the same. so as to ascertain
the totsl amounts that would have been
due the United States for principal and
interest paid on bonds issued to each of
said companies at their maturity if no
payments or REIN bursements had been
mace thereon by the companies.
'Seeond--From the same amounts so
ascertained shall be deducted any paw
ments or reimbursements made by or on
behalf of either of said companies upon
their indebtedness at any time before the
first day day of July, 1896, as shall appear
in the bond and interest accounts of said
companies, respectively, with the United
States.
''Thlrd-Compute the present worth of
the amounts so found as of the first day of
July, 1896, on the basis that money is
worth per cent per annum during the
period between the date of the average
maturity of said bonds and the first day of
July, 1894. From the sums so ascertained
there shall be deducted amounts in the
sinking fund applicable TO said companies,
respectively, computing the value of anv
bonds in said sinking fund at their market
value at the time of such computation, as
estimated by the Secretary OF the Treas
ury, and said sinking fund shall thereupon
be applied as payment upon the debt of
such company to the United States. To
the total amounts so ascertained and re-
naming unpaid, after deducting said
sinking fund, add the sum to be COM
puted on such basis, assuming money to
be worth per cent per annum, as to rep-
resent the present capitalized worth of the
rebate of interest for ten years of l per
cent per annum on the total unpaid
amounts and on the sum so added for the
rebate of interest.
The aggregate amounts arrived at bv
such addition shall be arrived at by calcu-
lating upon such capitalization as would
be required to be paid in cash on said day
for the purpose of completely discharging
their entire debts to the United States.
"The Central Pacific is authorized to
make. issue and to deliver to the Secretary
of the Treasury a mortgage, which shall
bear date OF the first day of July, 1896,
covering and embracing the entire prom
erty of such company, as at present con-
solidated, real, personal and mixed, in
company in any stocks, bonds, or securi-
ties or lands of any branch lines. or auxil-
larv companies in which such company
has now any interest, and all beneficial
interest which it may have in a GER
tain lease of its property to the South
ern Pacific Company, as herein
after provided, and all railroads now
owned or hereafter acquired or constructed
By the said Central Pacific Railroad Com
pany, and all their franchises, telegraph
lines, selling stock, fixtures and property
of every kind and description, as we'll as
those which its successors or assigns may
hereafter acquire, subject to any bona fide,
lawfully prior and paramount lien, claim
or mortgage upon any railroad franchises
whose property is now owned by such
company, or which company may here
after acquire.
but such mortgage shall not be con-
strued to prevent the said company from
using and disposing of any of its property
or assets in the ordinary, proper and law
1uI course of its current business, in good
ialth and for valuable consideration; nor
10 prevent the railroad company from
applying rentals derived from said
!eaSe TO the payment of dividends to
rs stockholders to the extent that
uI!iuends are permitted by this act, and
SAIu company may sell and convey for
valuable consideration any roads included
IN us land grant and apply the proceeds
'neIeot as required by the provisions of
any mortgage or liens thereon, prior to the
mortgage given by this act
Inc central Pacific Railroad Company
Is autnorlzed to make, execute and issue,
uhoer It's mortgage aforesaid, its bonds in
an amount equal to said aggregate amount
arrived at, each of which bonds shall be
Tor the principal sum of $1,000, and shall be