OCR Text |
Show Iliudiuc on Use Iucflio Koudsi. Washington, 4. The bill reported from the senate judiciary committee to dny, providing lor tbe creation of a sinking fund to liquidate tbe principal prin-cipal and interest on the Pacific railroads' rail-roads' bonds, endorsed by the United States, is tbe measure originally introduced in-troduced by Senator Tburman, amended 80 aB to confine its operations opera-tions to the Union Pacific and Central Pacific indebtedness, and to embody the following proposition : Tbe net earnings are to be ascertained by deducting from the grosa earnings the expenaea of operating and keeping the roads :d repair, and also pay ments for intereal on first mortgage bonds, but no reduction Bhali be made on account ot payment of interest on other indebtedness. Tbe treasury department is to retain tbe total amounts earned from time to time for government transportation. One-half of these amounts are to be forthwith applied to the liquidation of amountB paid or to be paid by government gov-ernment for interest on tbe companies' com-panies' bonds, and the other halt is to be placed to tbe credit of the proposed pro-posed einking tund. Five per centum of the net earnings, as above defined, are to be paid into the treasury of the United Stales Bemi annually to be placed to tbe credit of the sinking fund, and in addition to the foregoing sums the companies are to pay into the United States treasury, ia Bemi-an-nual payments, not leas than $850,-000 $850,-000 each year for the Union Pacific and $1,200,000 tor tbe Central Pacific company. Tbe act ia to take eflect on the let of June next. |