The Wichita daily eagle., 1896-04-01
WORKING IN LINE
PACIFIC RAILROADS COMMITTEES
KEEPING TOGETHER.

Provisions of this Bill Which is at Present
the Basis of Congressional Planning for
the IReorganization of the Unlon and
Central Pacific, Which it Is Proposed to
Reorganize Separately, Provision Being
Made, Finally, for the Government to
sep in and Take Control, in Certain
insencies-R2iIHay News.
Washington. March 31.-The Pacific
s1lroad committees of the two houses
have suspended their work in order TO
procure certain data from the secretary
of the treasury to enable them to pro
ceed intelligently in the preparation
Of the bill which they propose bringing
in. So far the proceedings of the COM
mittee have been based upon a bill con-
tanning the following provisions:
The Union Pacific and Central Pacific
systems are to be reorganized separa te
but subjected 10 requirements in most
respects similar. The secretary of the
treasury is TO ascertain the amounts Of
the government liens, principal and in
tereSt, in each case up TO January l,
1897, deducting payments already made
The sinking fund of each of the roads
is 10 be credited on the debts TO the
government. The entire property Of
the two lines is to be mortgaged 10
the government, subject 10 the first
mortgage. covering the entire govern
ment debt, including principal and in
FereSt, and bonds issued to the govern
ment bearing = per cent interest, pay
able semi-annually. There is to be in
each case an annual payment of prin-
ciple amounting for the first ten years
to 100000, the next ten TO S5OO,0OO and
thereafter to $3.50, 900 until the indebted
ness is wiped out, but his provision is
likely to be changed so as to increase
the annual payments and to lessen the
time. The companies are authorized
TO refund their other debts and to issue
a first mortgage to secure them, with
four per cent bonds to run for fifty
years, this mortgage, and this only,
to take precendence over the govern
ment lien. The companies are to be
allowed TO issue preferred stock and TO
pay not 10 exceed per cent dividends
on 1t, and this only when earned and
after full payments of principal and in
terest due on bonds. Foreclosure un-
der pending proceedings and the for
nation Of new companies are authoriz-
ed. with the same privileges, immuni-
ties and obligations as the existing com
panies. In the case of the Central
Pacific, the mortgage is to include the
lease to the Southern Pacific, the Sou
thern Pacific is to guarantee principal
and interest, and the debt of over s., ,000,-
600 due the Southern Pacific by the gov
eminent for services is to be used for
the cancellation of Central Pacific bonds
The president is authorized through the
secretary Of the treasury at any time
20 clear off the paramount lien for the
protection of the government, or when
interest and principal payments are in
default for six months the government
may takepOssession of the roads with
out the permission Of congress or the
courts. The Office of government di-
rectors of the roads is abolished, there
is TO be no further requirement of money
for the sinking fund, and no more money
IS to be withheld when due to the
roads for service rendered to the gov
eminent. All laws forbidding the mort
gaging of the roads or the extensions or
consolidation with other lines are re-
pealcd.