The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-11-29

fact that sufficient control over tht
lands was not given to the states tc
make them available as security fol
the money expended In their reciama-
ton
The secretary suggests the advisab bill
ity or patenting these lands to the
states after II Is fully determined that
the selections made by them under the
carey act are arid lands He calls at
tention to the fact that the reservoir
sites selected by the geological survey
remain without proper legislation pro-
viding for their use. while the water
they were expected to store Is being di-
verted to less practicable and econom-
ical sites. He suggests the utilization
OF these sites In connection with the
lands granted to the states under the
Carey act.
Under the subject of forests. the
secretary calls attention to the fact
that l5.Ooo.ooo acres are now included
within forest reserves. the object be-
Ing to thus preserve the forests for
future use and through their preserva-
tion to control the supply OF water, so
that 1t may be stored and utilized for
irrigation. The present force OF the
general land Office. II is said, is adequate
to protect these reservations. Unless
some plan is devised by congress for
protection OF the forests. II is mani
fest that the object sought to be ac-
complished will fail. The secretary
criticizes the law authorizing the issue
of permits for the cutting OF timber
from the public domain. and urges that
the timber cut therefrom should be
sold for a sufficient sum to make It
possible to preserve the standing forest
and see that the cutting Is done In
a wav not destructive to 1t.
The review of the pension ONCE con-
sists chiefly OF statistical information.
furnished by the bureau. One Of the
interesting features of the report is the
discussion OF the relations between the
government and the Pacific bond-aided
roads. and the possibility OF collecting
the amount due the government from
these roads. The report urges that
two things are to be considered First.
the collection of the debt due the gov
ernment. and. second. the creation OF
a great through line from the Missouri
to the Pacific. which was the original
purpose OF the government leading to
the issue Of subsidy bonds. The re-
subsidy bonds. the amount OF the in
terest which the government has paid
on them and the amount of the first
mortgage bonds. The secretary says
the government Is already out s117.-
$4,000 upon these roads and that the
first mortgage bonds only amounted
to $64.6l3.000; that the property Is worth
vastly more than the first mortgage
d.. n, a.. L..
terests can be protected, II necessary.
by taking UP these bonds.
The secretary says all of these bonds
are now maturing and draw six per
cent; that they can easily be replaced
with a three per cent. bond II the gov-
ernment guaranteed them; that the
government holds a second lien and
must protect the property against the I
first hen the government should see TO 4
n, II any new set OF bonds are issued: I
that the first mortgage bonds draw no I
higher rate OF interest than govern /
ment bonds would draw. The secretary /
says the net earnings Of each one of |
these lines during thu past ten years
have been an average of nearly six per
cent ON the sum OF first mortgage
bonds and of the government subsidy
bonds. and suggests the possibility OF q
new issue OF bonds guaranteed by the
government; drawing three per cent.
equal IN amount to the FIRST mortgage
bonds and the subsidy bonds
with the interest on the same. As
the road could easily earn the interest
on these bonds and leave a handsome
surplus. capitalists should be found
who would buy the property subject TO
the bonds and pay a fair sum unto the
treasury each year towards their liqui-
iation.
The secretary discusses the scheme
,f government directors and also Of the
committee OF the Union
Pacific. and finally urges that. the gov
srnment being In the attitude OF second
mortgage security holders. Il is abso-
utely necessary In order to protect its
claims. that negotiations be had be-
.ween the government. with the other
)arties in interest. and such capitalists
Is are likely Ito take hold OF the enter
Prise. This work cannot successfully
De performed by congress and the re-
Iponsfbility for II should be placed at
moe by congress upon a commission or
ipon some duly authorized agents Of
he government whose duty II should
Re TO take the subject up in a business
way and work out the best plan for dis
posing of the governments interest
With the least possible loss.