May 7, 1878. Preamble. No. 2129.-AN ACT to alter and amend the act entitled "An act to aid in the con struction of a railroad and telegraph line from the Missouri River to the Pacific Ocean, and to secure to the Government the use of the same for postal, military, and other purposes," approved July first, eighteen hundred and sixty-two, and also to alter and amend the act of Congress approved July second, eighteen hundred and sixty-four, in amendment of said first-named act. Whereas, on the first day of July, anno Domini eighteen hundred and sixty-two, Congress passed an 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 use of the same for postal, military, and other purposes;" and Whereas afterward, on the second day of July, anno Domini eighteen hundred and sixty-four, Congress passed an act in amendment of said first-mentioned act, and Whereas the Union Pacific Railroad Company, named in said acts, and under the authority thereof, undertook to construct a railway, after the passage thereof, over some part of the line mentioned in said acts; and Whereas, under the authority of the said two acts, the Central Pacific Railroad Company of California, a corporation existing under the laws of the State of California, undertook to construct a railway, after the passage of said acts, over some part of the line mentioned in said acts; and Whereas the United States, upon demand of said Central Pacific Railroad Company, have heretofore issued, by way of loan and as provided in said acts, to and for the benefit of said company, in aid of the purposes named in said acts, the bonds of the United States, payable in thirty years from the date thereof, with interest at six per centum per annum, payable half-yearly, to the amount of twenty-five million eight hundred and eighty-five thousand one hundred and twenty dollars, which said bonds have been sold in the market or otherwise disposed of by said company; and Whereas the said Central Pacific Company has issued and disposed of an amount of its own bonds equal to the amount so issued by the United States, 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, after the passage of said acts, the Western Pacific Railroad Company, a corporation then existing under the laws of California, did, under the authority of Congress, become the assignee of the rights, duties and obligations of the said Central Pacific Railroad Company, as provided in the act of Congress passed on the third of March, anno Domini eighteen hundred and sixty-five, and did, under the authority of the said act and of the acts aforesaid, construct a railroad from the city of San Jose to the city of Sacramento, in California, and did demand and receive from the United States the sum of one million nine hundred and seventy thousand five hundred and sixty dollars of the bonds of the United States, of the description before mentioned as issued to the Central Pacific Company, and in the same manner and under the provis ions of said acts; and upon and in respect of the bonds so issued to both said companies, the United States have paid interest to the sum of more than thirteen and a half million dollars, which has not been reimbursed; and Whereas said Western Pacific Railroad Company has issued and disposed of an amount of its own bonds equal to the amount so issued by the United States to it, and secured the same by mortgage, which are, if lawfully issued and disposed of, a prior and paramount lien to that of the United States, as stated and secured thereby; and Whereas said Western Pacific Railroad Company has since become merged in, and consolidated with, said Central Pacific Railroad Company, under the name of the Central Pacific Railroad Company, whereby the said Central Pacific Railroad Company has become liable to all the burdens, duties, and obligations before resting upon said Western Pacific Railroad Company; and divers other railroad companies have been merged in and consolidated with said Central Pacific Railroad Company; and Whereas the United States, upon the demand of the said Union Pacific Railroad Company, have heretofore issued by way of loan to it and as provided in said acts, the bonds of the United States, payable in thirty years from the date thereof, with interest at six per centum per annum, payable half-yearly, the principal sums of which amount to twenty-seven million two hundred and thirty-six thousand five hundred and twelve 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 eightyeight 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 respecttive 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 Whereas, 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, tained. Be it enacted by the Senate and House of Representatives of the United Net earnings, States of America in Congress assembled, That the net earnings mentioned how to be ascer in said act of eighteen hundred and sixty-two, of said railroad compaamount of their earnings respectively the necessary expenses actually nies respectively, shall be ascertained by deducting from the gross paid within the year in operating the same and keeping the same in a has priority over the lien of the United States, and excluding from conyear in discharge of interest on their first-mortgage bonds, whose lien sideration all sums owing or paid by said companies respectively for ing provision shall be deemed and taken as an amendment of said act of eighteen hundred and sixty-four, as well as of said act of eighteen day of June next, and be applicable to all computations of net earnhundred and sixty-two. This section shall take effect on the thirtieth Date of effect. or of either of said railroad companies existing prior thereto. ings thereafter; but it shall not affect any right of the United States SEC. 2. That Amendment. the whole amount of compensation which may, from Compensation tained; how a p. plied. time to time, be due to said several railroad companies respectively for due from United States, one-half thereof to be presently applied to the liquidation of the services rendered for the Government shall be retained by the United States to be reissued by it as aforesaid, to each of said corporations severally, and the interest paid and to be paid by the United States upon the bonds so other half thereof to be turned into the sinking-fund hereinafter provided, for the uses therein mentioned. SEC. 3. That there shall be established in the Treasury of the United Sinking-fund. Treasury in bonds of the United States; and the semi-annual income States a sinking-fund, which shall be invested by the Secretary of the thereof shall be in like manner from time to time invested, and the And in making such investments the Secretary shall prefer the five per same shall accumulate and be disposed of as hereinafter mentioned. to him, and which he shall report to Congress, he shall at any time deem centum bonds of the United States, unless, for good reasons appearing it advisable to invest in other bonds of the United States. All the bonds belonging to said fund shall, as fast as they shall be obtained, be 80 stamped as to show that they belong to said fund, and that they are not good in the hands of other holders than the Secretary of the Treas ury until they shall have been indorsed by him, and publicly disposed of pursuant to this act. Credits to, and SEC. 4. That there shall be carried to the credit of the said fund, on payments into the first day of February in each year, the one-half of the compensasinking-fund. tion for services herein before named, rendered for the Government by said Central Pacific Railroad Company, not applied in liquidation of interest; and, in addition thereto, the said company shall, on said day in each year, pay into the Treasury, to the credit of said sinking-fund, the sum of one million two hundred thousand dollars, or so much thereof as shall be necessary to make the five per centum of the net earnings of its said road payable to the United States under said act of eighteen hundred and sixty-two, and the whole sum earned by it as compensation for services rendered for the United States, together with the sum by this section required to be paid, amount in the aggregate to twenty-five per centum of the whole net earnings of said railroad company, ascertained and defined as herein before provided, for the year ending on the thirty-first day of December next preceding. That there shall be carried to the credit of the said fund, on the first day of February in each year, the one-half of the compensation for services hereinbefore named, rendered for the Government by said Union Pacific Railroad Company, not applied in liquidation of interest; and, in addition thereto, the said company shall, on said day in each year, pay into the Treasury, to the credit of said sinking-fund, the sum of eight hundred and fifty thousand dollars, or so much thereof as shall be necessary to make the five per centum of the net earnings of its said road payable to the United States under said act of eighteen hundred and sixty-two, and the whole sum earned by it as compensation for services rendered for the United States, together with the sum by this section required to be paid, amount in the aggregate to twenty-five per centum of the whole net earnings of said railroad company, ascertained and defined as hereinbefore provided, for the year ending on the thirty-first day of December next preceding. Remission of SEC. 5. That whenever it shall be made satisfactorily to appear to the payments into Secretary of the Treasury, by either of said companies, that seventysinking-fund. five per centum of its net earnings as hereinbefore defined, for any current year are or were insufficient to pay the interest for such year upon the obligations of such company, in respect of which obligations there may exist a lien paramount to that of the United States, and that such interest has been paid out of such net earnings, said Secretary is hereby authorized, and it is made his duty, to remit for such current year so much of the twenty-five per centum of net earnings required to be paid into the sinking-fund, as aforesaid, as may have been thus applied and used in the payment of interest as aforesaid. No dividend in Liabilities SEC. 6. That no dividend shall be voted, made, or paid for or to any case of default. stockholder or stockholders in either of said companies respectively at any time when the said company shall be in default in respect of the payment either of the sums required as aforesaid to be paid into said sinking-fund, or in respect of the payment of the said five per centum of the net earnings, or in respect of interest upon any debt the lien of which, or of the debt on which it may accrue, is paramount to that of to the United States; and any officer or person who shall vote, declare, repay dividends. make, or pay, and any stockholder of any of said companies who shall receive any such dividend contrary to the provisions of this act, shall be liable to the United States for the amount thereof, which, when recovered, shall be paid into said sinking-fund. And every such officer, person, or stockholder who shall knowingly vote, declare, make, or pay any such dividend, contrary to the provisions of this act, shall be deemed guilty of a misdemeanor, and, on conviction thereof, shall be punished by a fine not exceeding ten thousand dollars, and by imprisonment not exceeding one year. Penalty. Application of sinking-fund. Priorities in application of sink ing-fund. SEC. 7. That the said sinking-fund so established and accumulated shall, at the maturity of said bonds so respectively issued by the United States, be applied to the payment and satisfaction thereof, according to the interest and proportion of each of said companies in said fund, and of all interest paid by the United States thereon, and not reimbursed, subject to the provisions of the next section. SEC. 8. That said sinking-fund so established and accumulated shall, according to the interest and proportion of said companies respectively therein, be held for the protection, security, and benefit of the lawful and just holders of any mortgage or lien debts of such compan ́es respect ively, lawfully paramount to the rights of the United States, and for the claims of other creditors, if any, lawfully chargeable upon the funds so required to be paid into said sinking-fund, according to their respective lawful priorities, as well as for the United States, according to the principles of equity, to the end that all persons having any claim upon said sinking-fund may be entitled thereto in due order; but the provisions of this section shall not operate or be held to impair any existing legal right, except in the manner in this act provided, of any mortgage, lien, or other creditor of any of said companies respectively, nor to excuse any of said companies respectively from the duty of discharging, out of other funds, its debts to any creditor except the United States. Liabilities to SEC. 9. That all sums due to the United States from any of said companies respectively, whether payable presently or not, and all sums United States a required to be paid to the United States or into the Treasury, or into lien on property said sinking-fund under this act, or under the acts herein before referred of companies. to, or otherwise, are hereby declared to be a lien upon all the property, estate, rights, and franchises of every description granted or conveyed by the United States to any of said companies respectively or jointly, and also upon all the estate and property, real, personal, and mixed, assets, and income of the said several railroad companies respectively, from whatever source derived, subject to any lawfully prior and paramount mortgage, lien, or claim thereon. But this section shall not be construed to prevent said companies respectively from using and dis- posal. posing of any of their property or assets in the ordinary, proper and lawful course of their current business, in good faith and for valuable consideration. Right of dis States. SEC. 10. That it is hereby made the duty of the Attorney-General of Enforcement of the United States to enforce, by proper proceeding against the said rights of United several railroad companies respectively or jointly, or against either of them, and others, all the rights of the United States under this act and under the acts herein before mentioned, and under any other act of Congress or right of the United States; and in any suit or proceeding What to be dealready commenced, or that may be hereafter commenced, against any termined. of said companies, either alone or with other parties, in respect of matters arising under this act, or under the acts or rights herein before mentioned or referred to, it shall be the duty of the court to determine the very right of the matter without regard to matters of form, joinder of parties, multifariousness, or other matters not affecting the substantial rights and duties arising out of the matters and acts hereinbefore stated and referred to. SEC. 11. That if either of said railroad companies shall fail to per- Forfeiture of be by it performed, for the period of six months next after such perinbefore mentioned, and of any other act relating to said company, to formance may be due, such failure shall operate as a forfeiture of all from the United States; and it shall be the duty of the Attorney-General to cause such forfeiture to be judicially enforced. the rights, privileges, grants, and franchises derived or obtained by it SEC. 12. That nothing in this act shall be construed or taken in any Further amendwise to affect or impair the right of Congress at any time hereafter fur- ment, repeal, &c. ther to alter, amend, or repeal the said acts herein before mentioned; the opinion of Congress, justice or the public welfare may require. and this act shall be subject to alteration, amendment, or repeal, as, in And nothing herein contained shall be held to deny, exclude, or impair Existing remeany right or remedy in the premises now existing in favor of the United dies. States. Amending ef SEC. 13. That each and every of the provisions in this act contained shall severally and respectively be deemed, taken, and held as in altera- fect of this act. tion and amendment of said act of eighteen hundred and sixty-two and of said act of eighteen hundred and sixty-four respectively, and of both said acts. (a) (a) See Nos. 2092, 2093, 2094, 2096, 2097, 2098, 2099, 2100, 2105, 2106, 2107, 2112, 2113, 2115, 2116, 2118, 2121, 2122, 2124, 2130. No. 2130 ACT to create an Auditor of Railroad Accounts and for other pur- June 19, 1878. Vol. 20, p. 169. aid in the construction of a railroad and telegraph line from the Mis- in reference to Be it enacted, &c., That section twenty of the act entitled "An act to Repeal of acts souri River to the Pacific Ocean, and to secure to the Government the filling reports. use of the same for postal, military, and other purposes," approved July first anno Domini eighteen hundred and sixty two, and the act entitled "An act relative to filing reports of railroad companies," approved June twenty-fifth, anno Domini eighteen hundred and sixty-eight, be, and the same are hereby, repealed. (a) (a) See Nos. 2092, 2093, 2094, 2096, 2097, 2098, 2099, 2100, 2105, 2106, 2107, 2112, 2113, 2115, 2116, 2118, 2121, 2122, 2124, 2129. March 3, 1879. Otoe and Mis tion in Kansas. No. 2131.-AN ACT to amend an act to provide for the sale of a portion of the res ervation of the Confederated Otoe and Missouria and the Sao and Fox of the Mis souri tribes of Indians in the States of Kansas and Nebraska. Be it enacted, &c., That section three of the act of August fifteenth, gouria and Sac eighteen hundred and seventy-six, chapter three hundred and eight, enand Fox reserva- titled "An act to provide for the sale of a portion of the reservation of the Confederated Otoe and Missouria and the Sac and Fox of the Mis souri tribes of Indians," be, and the same hereby is, amended so as to read, as follows: (a) Portion to be sold. Proviso. That after the survey and appraisement of said lands, the Secretary of the Interior shall be, and is hereby, authorized to offer one hundred and twenty thousand acres from the western side of the same for sale, through the United States public land office at Beatrice, Nebraska, in tracts not exceeding one hundred and sixty acres for cash, to actual settlers, or persons who shall make oath before the register or receiver of the land office at Beatrice, Nebraska, that they intend to occupy the land for authority to purchase which they make application, and who shall within three months from the date of such application make a permanent settlement upon the same, in tracts not exceeding one hundred and sixty acres to each purchaser: Provided, That if, in the judgment of the Secretary of the Interior, it shall be more advantageous to sell said lands upon deferred payments, he may, with the consent of the Indians expressed in open council, dispose of the same upon the following terms as to payments, that is to say, one-third in cash, one-third in one year, and one-third in two years from date of sale, with interest at the rate of six per centum per annum: And provided further, That no portion of said land shall be sold at less than the appaised value thereof, and in no case less than two dollars and fifty cents per acre: And provided fur Fractional ther, That whenever a settler on any of the lands subject to sale under the act to which this is amendatory shall apply to purchase a tract containing a small excess over one hundred and sixty acres, owing to the legal subdivisions being made fractional by boundary line of reservation, township or section line his application shall not be rejected on account of such excess; but, if no other objection exist the purchase shall be allowed as in other cases. And provided further, That bona-fide Present occu- claimants at present occupying lands under the provisions of the act of pants. which this is amendatory may in the discretion of the Secretary of the Interior be allowed additional time for making the deferred payments required by said act for the lands so claimed and occupied by them in good faith, not exceeding one year on each payment so required to be made. (b) Proviso. pieces. Proviso. (a) See Nos. 2120, 2128. (b) See Nos, 1999, 2079, 2083, 2085, 2106, 2108, 2109, 2110, 2117, 2120, 2126, 2127, 2128, 2132. June 4, 1880. June 9, 1880. Vol. 21, p. Certain home No. 2132.-AN ACT for the relief of certain homestead and pre-emption settlers in Kansas and Nebraska. [See KANSAS, No. 2079.] No. 2133.-AN ACT for the relief of certain settlers within the late Fort Kearney military reservation in Nebraska. Be it enacted, &c., That the homestead entries numbered seventy-one stead entries con- hundred and eighty-two, seventy-two hundred and twenty-six, sev firmed. enty-two hundred and thirty-three, seventy-five hundred and eighty seven, seventy-nine hundred and twenty, and seventy-nine hundred and twenty-one, made at Grand Island, Nebraska, under the act of Congress of July twenty-first, eighteen hundred and seventy-six, by Morgan T Martin, Samuel H. McNutt, Allan D. Randall, John J. Brown, Joseph B. |