New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-09-09
AN ARKANSAS COMPROMISE.
THAT STATE DOING HER BEST TO REPU-
date HER DEBTS.

~ovcprss WILL AGAIN BE ASKED TO RELEAsb
HER FROM THE PAYMENT OF SEVERAL
MILLION DOLLARS DUE TO THE
UNITED STATES.
fBY TELEGRAPH TO THE TRrBuNEJ
Washington. Sept. s-One OF the schemes ~. 49,,
will be pushed with all the energy ana ioIOe
its promoters can muster in the COMING |"'7
is that which aims TO release the state OF ArA'''
from the payment OF debts amounting 10 se'e'"
million dollars due TO the United States as "us'.o
OF the Smithsonian Fund. and certain indan - ~.
which invested in the bonds d ina -
nearly sixty years ago The amount o' 49,
belonging the Smithsonian Fund thus "'
is represented by s53s.Oo0 in Arkansas per 80
bonds deposited in the Treasury OF the unl'eu
States. The State has never paid dohar' 80
OF interest or principal, on account or 'hese ~
which were bought nfty-seven years ago ny SCI
rotary Woodbury., with the approval OF fresiu7''.
Van Buren-s5O0oo worth at %, $1,000 worth a.
par $4,000 worth at sss. and $4,000 worth at es'..
When the late w W Corcoran offered these
bonds 10 the Government offers Of Indiana per
cents at par. and 9s and %: OF New-forK ana
Massachusetts per cents at l0i. OF Kentucky anu
OF Maine per cents at 9Si2 and par. were rennihs'
also offer OF Missouri 81 per cents d.
1o2 and par and offers OF Michigan per cents al
par and Illinois per cents at l0 In 1871. through
the efforts OF ex-President John quincy Adams
who was then a member OF the House OF Repre-
sentatves. Congress repealed the provision
thorzing the investment of moneys beohe"s
the Smithsonian Fund In State securities" wiz
provision had been struggled into an Appropriation
bill for the support OF the Military Academy a.
West Point-and directed that the accruins III.
terest should thereafter be invested In bonds Oh
the United States No interest ever accrueu'
however so far the Arkansas Investment wa
concerned. and when the last instalment OF $io''"
OF bonds was purchased. at 6s%4 In SeptemDe''
1870 the State was already In default on account
OF interest due the first instalment OF S'""'
OF bonds purchased in September. 1888. The amount
OF principal and interest now due from the state
OF Arkansas to the United States as trustee Of inc
Smithsonian Fund. exceeds 10000. and this Is
part OF the debt from which she seeks release by
Offering as an Offset her claims and alleged claims
on account OF a percentage OF the net sales OF
public lands within the State. and OF swamp and
overlooked public lands and land and money IN
demnitv on account OF swamp lands under the
acts of 1s,5 and 1851
The State government began a number OF years ago
TO nourish and expand these claims During the
greater part OF the first Cleveland Administration.
Mississippi ex-Congressman. who formerly
citizen Of Arkansas. acted the agent OF that
State in Washington and had free access TO the
records and archives of the General Land Once
whose employees were required to facilitate his in
vestigations. He was exceedingly successful In lay
ing the foundation for a vast number of new
until the total became a large one. In the sue
ceeding Administration little or no work on the
claims was done in the General Land Once nut the
agents OF the State by no means idle, ana
when the elections OF 1892 placed the executive and
legislative departments OF the Government In tho
hands OF the Democratic party Arkansas STOOD
ready to offer A compromise"
Mr. Berry OF Arkansas. chairman or the
Senate Committee Public Lands. and the chair
man OF the Committee Public Lands in the
House was Nj McRae. OF Arkansas II naturally
romnromise and settlement with the state OF Ar
kansas" and that bill was naturally approved 10y
1884 and provided that the Secretary Of the Treas
ury and the Secretary OF thPlnterior or any three
persons they may select or cause 10 ne sslect.n Oh
behalf Of the United States are hereby fully author
tied and empowered to compromise. aajnst ana
finally settle with the Governor OF the state OF Al
kansas with such person or persons as may ~, ne
authorized by the laws Of that state to act IN its
behalf upon such terms and conditions as 10 mem I'm
seem Just and equitable sn6ec 10 approC va tb
Congress Pr0vaen an or and any be oi said
state growing out OF and arising from the eSus OF
In their own right or held in trust by me nitea
States" and also on account of the claims hereinoe-
The diligence exhibited by the persons employed
to effect this compromise. which Involves mil
ions OF money and the investigation ana e
Of accounts covering period OF nearly Sky years
and the inves tigation and adjustment OF Gains
many II not majority Of which Were vague ana
from forty to ftty-nne years-was remarKabie ana
was eQualled only by the nicely OF tIel
tions the result OF which was that II the com
nromise'' should be accepted by Congress the state
Of Arkansas would be required to pay into the
Treasury of the United States the enormous sum
OF s572 1t may be pertinent to remark here how
ever that in order to reach this result, 4 was
necessary for Secretaries Carlisle and Hoke Smith.
or their representatives, to throw of about
81 600 900 on account OF interest which had accrued
or should have accrued. since the date OF maturity
OF the original bonds purchased from the state OF
Arkansas 100000 OF which matured In 1901 ana
s3s 900 IN 1868
The proceedings OF the persons 10 whom the ad-
tustment and compromise" had Deen in;rusted by
Congress on August marked by prompt
ness and speed. as well by diligence and the
result was ready TO be submitted TO Congress when
il reassembed on the first Monday in December
II Is doubtful II the history OF the Government can
furnish parallel for the extraordinary diligence
and speed exhibited in the Investigation. adjust
rnent and settlement OF complicated and difficult
a matter Perhaps the known fact that the House
OF Representatives OF the LINth Congress would be
Republican spurred Secretaries Carlisle and Hoke
smith and the Governor OF Arkansas to unusual
activity The refusal OF the LID Congress TO APP
proye the compromise" must have been serious
to them and grievous one 10 the
promoters OF the scheme, whose prospective ices
were involved. But they have by no means
abandoned hope: In fact they so full OF II that
they openly express confidence in favorable action
next winter.