The San Francisco call., 1896-03-31
MAY PAY IN DRIBLETS.
Central Pacific People to Be Given
a Long Time in Which
to Settle.
THE BILL TO BE REPORTED.
No Relief to the Coast Will Be Given
in the Measure Prepared by the
Joint Committee.

WASHINGTON, D. c., March 30.-The
Joint subcommittee of the Senate and
House on Pacific railroads has completed
a bill which Will be reported TO the full
committees of both houses at their next
meeting, and with the exception of some
changes of little Importance it will un-
doubtedly be reported in the Senate and
House at an early date.
The bill is divided into two parts. that
referring to the Union Pacific and
branches and that relating to the Central
Pacific.
For the Central Pacific and Western
Pacific companies the bill requires the
Treasury Department to determine their
indebtedness as it will stand on the first
day of 1897. Precise directions for this are
made at length. The companies must de-
liver to the Secretary of the Treasury
mortgage to bear date of January 1, 1897,
for the full amount of Indebtedness and
covering the entire property of said COM
panies OF any and all description, real, per-
sonaI or mixed, or in securities and all
beneficial interests which it may have in
the lease of its property to the Southern
Pacific Company.
An inventory of all said properties shall
be fled at the Treasury Department This
mortgage shall be held as security for the
payment of the principal of the debt and
the interest on bonds.
The Central Pacific Company is to issue
hc2ds in an amount equal TO the full in
debtedness of the roads. These bonds
shall be of $1,000 each, to bear interest at
q l.
ally, beginning with the 1st of July, 1897,
and continuing with the life of the bono.
The bonds shall be delivered to the Secre-
tary OF the Treasury as provisional pay
ment of the Indebtedness. The corporate
character of the Central Pacific Company
shall continue until the bonds shall have
been fully paid.
The Central Pacific Company shall on
the 1st of January of each year for a period
Of ten years, commencing January /, 1898.
pay into the treasury in addition TO the
interest then due on its Indebtedness, the
sum of 100000 per annum, and for
period of ten years following it shall pay
in addition to the interest $500, 900 per an
mum, and thereafter in like manner, COM
mencing January 1, 1898, it shall pay an
nually $75o,000, until the whole amount Of
the bonds shall have been paid.
These payments shall be applied to the
redemption of bonds of the Central Pacific
in the order of the numbers of such bonds,
beginning with the highest unpaid num-
Der, and no other bonds under said mort
gage shall be issued by the company in
lieu thereof. AS soon as all the bonds
have been redeemed the total Indebtedness
shall be wholly discharged, and the Secre-
tary of the Treasury shall discharge the
mortgage.
The statutory lien now subsisting under
the acts of Congress approved July, 1862
July 9, 1864 and May Z, 1878. is TO stay in
force for the security of the Government
debts until all liens on the property af-
fected by the company's mortgage shall
have been paid and discharged. When
ever the President of the United States
shall deem 1t necessary for the preserva-
ton of the security of the United States
in respect to its mortgage or other
interest in any of the company's property
named in this act, upon which paramount
title is held by the United States, the Sec
retary of the Treasury may be authorized
by him to redeem any such paramount
sum due thereon out of the treasury, and
the United States shall thereupon be sub
rogated to all rights pertaining to the
debts of the title when such payment shall
have been made.
1t is provided that in such case of pay
ment by the United States repayment may
be required from the company OF all money
paid for such purpose, with costs; and if
the company fails to make such repay
ments within one year after notification
the entire indebtedness of said company
may become due and payable, and all the
Governments s rights thereon shall be en-
forced.
The Central Pacific Company is allowed,
without injury to the present lien thereof,
to extend the payment of, or refund, by
issuing new bonds secured by mortgage,
any of its Indebtedness authorized by Sec
ton 10 of the act of July 2, 1864, as
amended by the act of March 3, 1865, at
lower rate of interest than it now bears,
not to exceed per cent, payable semi-an-
nually. Should there be default continu-
ing for six months in the regular pay
ments of interest on bonds or of principal
REQUIRED in this act, the entire
debt due the Government shall, at
the option of the President, imme-
diately mature. and the United States may
take possession of the mortgaged prop
critics of such companies without applying
to court or Congress, or may institute pro-
ceedings in any court of competent juris-
dictiou to enforce its claim. The bonds
must INCLUDE such stipulations as shall
secure said bonds and the application
thereto OF the money paid TO the Govern
ment, these to be approved by the Secre-
tary OF the Treasury. Certified duplicates
of bonds shall be kept for public 'inspec
tion and shall be placed for that purpose
with the clerk of the Circuit Court of the
United States and of the Superior Court of