The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1896-12-10

States but residing in foreign countries
! at the close of the last fiscal year was
3TS1, and the amount paid to them dur
! ing the year was S5S2, 1883. The sum
appropriated for the payment Of pen
I sions for the current fiscal year ending
June 80, 1897, is S140,000,000, and for
! the same amount will be necessary.
The commissioner of pensions reports
that during the last fiscal year 800 indict-
ments were found against violators Of
the pension laws. Upon these indct-
ments 167 convictions resulted. In my
opinion, based upon such statements as
these and much other information and
observations, the abuses which have been
allowed TO creep into our pension system
have done incalculable harm and are de-
moralizing our people and undermining
good citizenship. l have endeavored
within my sphere of official duty 70 pro
! tect our pension roll and make it what
I it should be, q roll of honor. containing
the names of those disabled in their
country's service and worthy of their
country's affection and remembrance
| When | have seen those who pose as
the soldiers friends active and alert in
urging greater laXity and more reckless
pension expenditure while nursing selfish
schemes, have deprecated the approach
of situation when necessary and en-
forced economy may lendSto an attack
on pension abuses so determined as to
overlook the discrimination due to those
who are worthy of Il nations care and
ought to live ana dle under the protcc-
ton of a nations gratitude.
DEFAULTED RAILROAD BONDS.
The secretary calls attention to the
public interests involved in an adjust
mcnt of the obligations of the Pacific
railroads to the government. | deem il
to be an important duty to especially
present this subject to the consideration
of the congress.
On January !, 1897, with the amount
already matured more than S13,OOOOn
of the principal of the subsidy bonds is
sued by the United States in aid of the
construction of the Union Pacific rail
way including its line and more than
S6,0OO,000 of like bonds issued in aid
of the Central Pacific railroad, including
! those issued TO the Western Pacific rail
way company, will have fallen due and
! been paid or must on that day be paid
! by the government, without any refer
! encc TO the application of the sinking
! fund now in the treasury.
This will create such default on the
part of these companies to the govern
ment as will give it the right to at once
institute proceedings to foreclose its
mortgage lien In addition to this in
debtedness, which will be due January
/, 1897, there will mature between that
date and January /, 1899, the remaining
principal of such subsidy bonds which
must also be met by the government
These amount to more than S20,O00000
on account of the Union Pacific lines
and exceed 21,000.000 on account of
the Central Pacific lines.
| The situation of these roads and the
condition of their indebtedness to the
government have been fully set forth IN
the reports of various committees TO the
present and prior congresses, and as
early as 1887 they were thoroughly .eX-
amined by a special commission appoint
| ed pursuant to an act of congress. Inc
considerations requiring an Adjustment
of the government relations to the com
panies have been clearly presented ana
the conclusion reached with practlcal
uniformity that if these relations are not
terminated they should be revised upon
basis securing their safe continuance.
| Under section 1 of the act of congress
passed March 3, 1887, the president rs
charged with the duty in the event tha'
any mortgage or other incum6rance pala
mount to the interest of the 1nneo
| ctuteS tue property "
railroads shall exist and shall De iaW
fully liable to be forced, to direct the
| action of the department of treasury anu
of justice in the protection OF the inai
est of the United States by reaempIioh
or through judicial proceedings including
| foreclosures of the government lien IN
view of the fact that congress mas FOE
number of years almost constantly mao
under consideration various plans tor
dealing with the conditions existing pc,
tween these roads and the government
have thus far felt justified in witnhoinnf
action under the statute above men-
toned.
| In the case of the Union Paeihc ceh-
pany, however, the situation mas oes0Ms
ESPECIALLY and Immediately urgent
ceedings have been instituted 70 Ioresioss
first mortgage upon the sald paIts VI
the main line upon which the s 9veah.
ment holds second and suDoruiha.s
mortgage lien. In consequence OF tnese
proceedings increasing complications Az
ded to the default occurring on me IL,
day of January, 1897, a condition WI
be presented at that date, so far as thIs
company is concerned, that must eInpha
size the mandate of the act OF 1925 anu
| to executive duty under its proVisiohs
more imperative aspect, therefore un LII
congress shall otherwise direct OF sIa f
have previously determined upon d VI
ferent solution of the problem tleIe VII
hardly appear to exist any reason 20 ~
laying beyond the date OF tne ueIH
above mentioned such executive se