New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-02-19
CENTRAL PACIFIC AGREEMENT.

HOW THE COMPANY'S DEBT TO THE
UNITED STATES is TO BE SETTLED.
tn. agreement entered into between the United
States acting by Secretaries Gage and Bliss and
Attorney General Griggs. the Government Com
mission appointed by act Of Congress OF July o.
1sS: the Central Pacific Railroad Company, ana
the banking house Of Speyer & Co.. providing for
the settlement Of the Central Pacihc's debt 10 the
Government bears date February / i recites. a.
the outset the successive consultations resulting
IN the present Central Pacific Railroad Company;
gives a list IN detail Of the "bond-a.ded lines
and the on-bord-aided lines owned by the COM
pany. with the mortgages and liens covering eacn'
notes the fact that Il Is claimed by the United
States but not conceded by the other parties 10
the agreement, that under the act Of May T. 1878.
the debt 10 the United States IS secured by lien
on all the railroad lines mentioned whether aided
or unaided. and states the amounts Of bonds O;
various classes deposited with Speyer & Co under
bondholders' agreements dated August a. 1897 and
October l. 49, and The fact that stock ceruhcates
amounting 10 s2s 4N 500 have been deposited with
the Banbury Committee, in London. and August
Belmont. John G. Carlisle ana George Coppen. IN
New-York. adding that the bondholders under the
TWO agreements mentioned and the stockholders
committees have authorized speyer & Co. 10 neso-
slate in their behalf with the Government Com
mission. the basis Of settlement Of The debt due
The United States
The agreement witnesses that the full amount
ell amounts necessary 10 reimburse the United
States for moneys paid for interest or otherwise.
are found and agreed be. on the day Of the
date Of the agreement February D. the sum OF
s5SN2u5 IS The Central Pacific Railroad Com
pany agrees 10 deliver 20 the Treasurer Of the
United States within thirty DAYS after the ap-
proval OF the settlement 10y the President. twenty
3 per cent promissory notes payable semi-annually
and extending over period Of ten years the
proviso being added that IF default shah be made
in any payment OF either principal or interest OF
any Of said notes or any part thereof then all 81
said notes then outstanding, principal and interest
shall Immediately become due and payable. not
withstanding any other stipulation Of this agree
ynent OF settlement
The payment OF the principal and interest Of
these notes is secured by the pledge OF SIS so o.
first refunding mortgage per cent gold bonds
issued by the Central Pacific Railroad Company
such bonds TO be part o. an issue not exceeding
800 0o 900 IN all one-twenteth part OF such pledged
bonds 10 bs held security for each % the notes
The bonds are 10 be delivered TO the Government a.
soon the details connected with the readJustmen
Of the company's affairs are completed Ter
months has been fixed for the delivery Of thes,
bonds but IL is said that extensions Of time will b.
granted pending judicial proceedings the period
not 10 exceed three years without The approval %
the President OF tho United States
The per cent bonds 70 FOR at leas
rorty-hve years. and are TO be secured by a NOR;
gage upon all the railroads. equipments and ter
yni8als now owned by the Central Pacific Railroad
Company this mortgage 70 be the hrst Zen up2I
The DroDcrty mentioned, or 10 be secured BY th'
deposit as collateral Of specified amounts Of now
outstanding bonds Of the Central PaciAc and rs
associate lines. Speyer & CO. agree 10 pay 70 th'
United States within one month after the deliver,
70 the Government OF the notes. the face value q
he four earliest maturing notes 81 762 $40 T. win
accrued interest thereon 10 date Of payment In'
Governments claim viii remain In force until me
bonds have been delivered 20 tho Government if
compliance with the reorganization agreement
Speyer g. Co. yesterday took up he first fou
notes referred 10 above. turning over 70 the Gov
eminent in payment therefor about s2oc900
Washington. Feb. ls-The settlement OF the oh
legations OF the Central Pacific Railroad Compan,
20 the Government was completed to-day. whel
United States Treasurer Roberts received tn
notes OF the company for $5Ssl2.7l5 The notes are
twenty In number payable semi annually. and ar
for 52940,635 each, bearing interest at per cent
internal revenue stamps to the value OF sl1 7s1 )
Eeye affixed to the notes.