The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-12-05

for which patents are asked have been
sold to bona-fde purchasers. The Central
Pacific Railroad was, on June 80, 1896, in
default 10 the Government to the extent
OF $2S6, l43 IS on its bond and interest,"
and its ''sinking fund.- account.
Secretary Francis gives the total in
debtedness Of the several bond-aided COM
panies to the United States on June 80,
1896, as follows:
Union Pacific (including Kansas Pa
cific). principle of bonds issued, $50, $780,
512, on which interest has accrued 10 the
amount OF S57,071, 757 49, If ON this there
should be credited the sum OF $S8, Gill;
and sinking fund" accounts and interest
on the latter, the balance of the debt on
the above date would be $52 900, 1873 SO.
Central Pacific .(includlng Western Pa
ciic)-Principal of bonds ISSUED, $27, $780,
$50; interest accrued, $46, 1913, 478 50; total
credits. consisting of "Dond and interest"
and sinking fund" accounts, with in.er-
est on the latter. SIG, 167, lac So; balance of
debt Gf these credits be ailowed), $58, 282,-
900 AZ.
Sioux City and Pacific Principal of
bonds, $1,628. 800: interest accrued, ST.
734, 1897 %: credits on account OF trans
portation, $246, $50 49,; balance OF debt,
81, 116,047 30.
Central Branch Union Pacifc-Princi-
pal of bonds issued, $1,600,o 600; accrued
interest, SETS, sos 20; credits. $642, 8S4 So;
balance of debt, So, 1856, 723 SO.
The report of the Commissioner OF Rail-
roads gives full information concerning
the physical and financial conditions of
the roads. He reviews the legislation
pending before Congress for the settlement
OF the debts of the Pacific roads to the
Government, and gives summary of the
provisions of the bills reported to Con-
gress and not yet called up. After revi W
ing other subjects the commission gives 1t
as its opinion that it is much better for the
Government to accept lump sum in cash
for its claims against the roads.
The Secretary does not agree with the
contentious of the Central Pacific that
their road is not in default to the Govern
ment and that il it were the lands are not
covered by the Government mortgage and
cannot be held to secure the same. On
this point Secretary Francis does not
agree with either statement and he de-
clines to patent the lands to the Union
Pacific or the Central Pacific railroad ex-
cept in case where it can be shown that
the lands for which patents are asked
have been sold to bona-hde purchasers,
and here the Secretary says:
'Inasmuch as the su bsidy bonds issued
by the Government to aid in the con-
struction of the roads are falling due from
Illu6 TO LlIQ0 anu II uSI De ISu6eucQ ny
the Government as they mature, while
the roads are unable to REIN burse the
treasury for the amount go paid, and for
the further reason that bill is now pend
ing in Congress providing for funding
OF this Indebtedness, deem it the part OF
prudence Tor this department to retain
whatever of the property of the roads it
may have in its possession or in its con-
troll ntil there shall be an adjustment OF
hn mo re Gnuprnman
The report of the Government directors
of the Union Pacific Railway Company
gives comparative statement of earnings
and expenses for 1896 and 1895. from which
ii appears that the slight increase in gross
earnings is more than offset by the In
crease in operating expenses.
He refers to the fact that the act char
tering the Nicaragua Canal Company re-
quires the company to make report on
the first Monday in December in each
wear to the Secretary of the Interior, to
be verified on oath by its president and
secretary. A preliminary statement has
been submitted by the canal showing how
much has been done on the canal since
August 1, 1893. The Maritime Canal Com
pany has entered into contract with the
Nicaragua Canal Construction Company
for the construction of the canal, but the
latter company became financially en-
barrassed in August, 1893, and SUISSE
quently made al assignment of its con-
struction contract and all its assets to the
Nicaragua Company, corporation char
tered by the State of Vermont. The lat
ter com pany "has not yet found itself in
a position to resume the work of construc-
ton under the contract."
The Secretary wants an extension of the
building accommodation for his depart
ment. He closes his report by saying:
II earnestly recommend that Congress
take immediate steps looking to the pur-
chase or condemnation of block or more
of ground adjacent or contiguous to the
Interior Department building for the erec-
ton thereon of another structure to meet
the present necessities of an important
branch Of the Government, which must
expand and grow with the development OF
the country's resources. The area of our
country, the variety of its products, the
diversity OF its interests, the trade and
social relations between localities and
classes of people. make its internal COM
merce of enormous magnitude and must
from time to time necessitate enlargement
of its existing Government bureaus and
the establishment of additional ones.
Provision for the accommodation thereof
should no longer be delayed.