246 NEW TRACKS IN NORTH AMERICA. 
The time of maturity for these bonds is placed at thiff 
years after date of issue. They are made subordinat¢, 
standing in the position of a second mortgage—to the bog 
issued by the companies, under the following importyal 
restrictions, viz.: That the railroads and telegraph lines {he 
kept in proper repair; that the companies shall always give 
Government dispatches, munitions of war, &c., the prefer- 
ence when required, and shall not charge higher rates for 
their transmission than are paid by private parties for like 
services ; that all compensation for services rendered to the 
Government shall be applied to the payment of said bonds and 
interest until the whole amount is fully paid; and that at 
least 5 per cent. additional of the net earnings of the 
railroads shall also be annually applied to the liquidation of 
the Government bonds as soon as the roads are completed. } 
The Californian Company, on consideration of the natural 7 
obstacles to be surmounted, were allowed to retain during q 
construction one-half of the compensation for services rel- — 
dered to the Government. q 
Mortgages, equal in amount to the subsidies, were autho- q 
rised to be issued from time to time as first mortgage bonds, — 
bearing the same date, time of maturity, and rate of interest | 
as those loaned by the Government. A small amount of 
capital stock was subscribed in each case. Thus the two — 
railway companies which have just completed the Salt Lake — 
line state their construction resources as follows :— 
UNION PACIFIC RAILROAD. 
CONSTRUCTION AND EQUIPMENT RESOURCES FOR 1,100 MILES OF RAILROAD. 
s : ai 
United States’ Bonds. . . , . , 29,328,000 
First Mortgage Bondi. =. 29,828,000 
Wel i 13,243,000 
we Ce TE, 899,000 
