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PACIFIC RAILROADS IN CONGRESS,
1877 AND 1878.
UNITED STATES COURT OF CLAIMS
FIVE PER CENT CASE.
BILLS PROVIDING FOR A SINKING FUND TO LIQUIDATĖ
THEIR INDEBTEDNESS TO THE GOVERNMENT.
The following debate upon the propositions for a sinking-fund to enable the Pacific Railroad to meet their obligations to the Government when due, is compiled from the official reports of the Senate debates:
THE PACIFIC RAILROADS. Mr. THURMAN. I move to postpone all previous orders and proceed to the consideration of Senate bill No. 15.
The motion was agreed to; and the Senate, as in Committee of the Whole, proceeded to consider the bill (S. No. 15) to alter and amend the act entitled "An act to aid in the construction of a railroad and telegraph line from the Missouri River to the Pacific Ocean, and to secure to the Government the nse of the same for postal, military, and other purposes," approved July 1, 1862, and also to alter and amend the act of Congress approved July 2, 1864, in amendment of said first-named act.
The Committee on the Judiciary reported an amendment to strike out all after the enacting clause and to insert as a substitute :
That the net earnings mentioned in said act of 1862, of said railroad companies respectively, shall be ascertained by deducting from the gross amount of their earnings respectively the necessary expenses actually paid within the year in operating the same and keeping the same in a state of repair, and also the sum paid by them respectively within the year in discharge of interest on their first mortgage bonds, whose lien has priority over the lion of the United States, and excluding from consideration all sums owing or paid by said companies respectively for in. terest upon any other portion of their indebtedness; and the foregoing provision shall be deemed and taken as an amendment of said act of 1864, as well as of said act of 1862. This section shall take effect on the 30th day of June next, and be applicable to all computations of net earnings thereafter ; but it shall not affect any right of the United States or of either of said railroad companies existing prior thereto.
Sec. 2. That the whole amount of compensation which may, from time to time, be due to said several railroad companies respectively for services rendered for the Government shall be retained by the United States, one-half thereof to be presently applied to the liquidation of the interest paid and to be paid by the United States