Page:United States Statutes at Large Volume 20.djvu/83

 58 FORTY-FIFTH CONGRESS. Sess. Il. Ch. 96. 1878. dollars; on which the United States have paid over ten million dollars interest over and above all reimbursements; which said bonds have been sold in the market or otherwise disposed of by said corporation; and Whereas said corporation has issued and disposed of an amount of its own bonds equal to the amounts so issued to it by the United States as aforesaid, and secured the same by mortgage, and which are, if lawfully issued and disposed of, a prior and paramount lien, in the respect mentioned in said acts, to that of the United States, as stated, and secured thereby; and Whereas the total liabilities (exclusive of interest to accrue) to all creditors, including the United States, of the said Central Pacific Company, amount in the aggregate to more than ninety-six million dollars, and those of the said Union Pacific Railroad Company to more than eighty-eight million dollars; and Whereas the United States, in view of the indebtedness and operations of said several railroad companies respectively, and of the disposition of their respective incomes, are not and cannot, without further legislation, be secure in their interests in and concerning said respective railroads and corporations, either as mentioned in said acts or otherwise; and Whereas a due regard to the rights of said several companies respectively, as mentioned in said act of eighteen hundred and sixty-two, as well as just security to the United States in the premises, and in respect of all the matters set forth in said act, require that the said act of eighteen hundred and sixty-two be altered and amended as hereinafter enacted; and Wherezis, by reason of the premises also. as well as for other causes of public good and justice, the powers provided and reserved in said act of eighteen hundred and sixty-four for the amendment and alteration thereof ought also to be exercised as hereinafter enacted: Therefore, Be it enacted by the Senate and House of Representatives of the United Net 6 =*· ¥¤ Wg8i States of America in Congress assembled, That the net earnings mentioned {mw t° b° "‘°“"' in said act of eighteen hundred and sixty-two of said railroad companies ained. . . 2 . 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, 1862.0b- 190- and also the sum paid by them respectively within the year in discharge 12 ”“‘“··48°· ot interest on their first mortgage bonds, whose lien has priority over the lien of the United States, and excluding from consideration all sums owing or paid by said companies respectively for interest upon any other 1§64. ch. 216- portion of their indebtedness; and the foregoing provision shall be deemed if Sf“§··(*·°6· and taken as an amendment of said act of eighteen hundred and sixty- wwwfour, as well as of said act of eighteen hundred and sixty-two. This Dm, of catch section shall take effect on the thirtieth day of June next, and be applicable to all computations of act earnings thereafter; but it shall not affect any right of the United States or of either of said railroad companies existing prior thereto. C°¤}P°“¤¤U°¤ Sec. 2. That the whole amount of compensation which may, from g;';i€;r°;g Es";; time to time, be due to said several railroad companies respectively for mam]; haw up. Services rendered for the Government shall be retained by the United plied. States, onehalf thereof to be presently applied to the liquidation of the interest paid and to be paid by the United States upon the bonds so issued by it as aforesaid, to each of said corporations severally, and the other half thereof to be turned into the sinking-fund hereinafter provided, for the uses therein mentioned. sinking-fund. Sec. 3. That there shall be established in the Treasury of the United States a sinking-fund, which shall be invested by the Secretary of the Treasury in bonds of the United States; and the semi-annual income thereof shall be in like manner from time to time invested, and the same shall accumulate and be disposed of as liercinafter mentioned. And in making such investments the Secretary shall preler the five per centuin bonds of the United States, unless, for good reasons appearing