The Saint Paul globe., 1896-12-08

ing the government during the same year.
The number OF new pension certificates issued
was 20 GAO. OF these, 40, 374 represent original
allowances OF claims, and 15,S7S increase Of
existing pensions.
The number OF persons receiving pensions
from the United States, but residing in
foreign countries at the close of the last
nscai year was 37S1, and the amount paid
10 them during the year was $5S2, 1888.
me sum appropriated for the payment Of
pensions for the current fiscal year ending
June 80, 1897. Is $40, 600, and for the
succeeding year 1t is estimated that the
same amount will be necessary.
Inc commissioner OF pensions reports that
during the last fiscal year 335 indictments
We're found against volators of the pension
laws. Upon these indictments 167 convictions
have resulted.
as these and much other information and
observation, the abuses which have been
5loWed TO creep into our pension system have
done incacuabe harm in demoralizing our
people and undermining good citizenship |
nave endeavored within my sphere of official
outy to protect our pension roll and make It
th Wnat Il should be, a roll Of honor, containing
the names Of those disabled in their country's
service and worthy of their country's affec-
tionate remembrance.
When | have seen those who pose as the
soldlers friends, active and alert in urging
greater laxity and more reckless pension
pendlture, while nursing selfish schemes
nave deprecated the approach of a situation
Wnen necessary retrenchment and enforced
economy may lead to an attack upon pension
abuses, so determined as to overlook the dis
elimination due to those who worthy of
nations care, ought to live and die under
lne protection OF nations gratitude.
BOND-AIDED ROADS.
The secretary calls attention to the public
interests involved in an adjustment OF the
oDIlgatlons OF the Pacific railroads to the gov
ernment l deem it to be an important duty
10 especially present this subject to the con-
sideration of the congress.
On January /, 1897, with the amount al
han
principal of this subsidy bonds issued by the
united States in aid of the construction of the
Union Union Paclfie railway inclndlng its Kansas
line and more than Sc, 700, 600 of like bonds
issued III aid of the Central Pacific railroad
including these issued to the Western Pacific
rallroad company will have fallen due and
the government Without any reference to
the application of the sinking fund now In
the treasury this will create such default
on the part Of these companies to the gov
efnment as give it the right at once to in
stltute proceedings to foreclose its mort
gage .,; lien. In addition to this Indebtedness
IL VIII be due January /, 1897-there will ma
ture between that date and January l. 1899
the remaining principal of such subsidy
ponos, which must also be met by the gov
ernment. These amount to more than $20,-
OOO, 900 on account of the Union Pacific lines
and exceed $21 ,000, 900 on account of the Cen
tral Pacific lines,
The situation of these roads and the condi-
tlons of their indebtedness to the government
nave been fully set forth in the reports of
various committees to the present and prior
congresses, and as early as 1887 thew were
thoroughly examined by a special commission
appointed pursuant to act of congress.
me consideration requiring an adjustment of
the governments relations to the companies
mas Deen clearly presented and the conclu-
SION reached with practical uniformity that
II these relations are not terminated they
should be revised upon basis securing their
safe continuance.
Under section of the act of congress
passed March 3, 1887. the president is charged
with the duty, in the event that any mort
gage or other 1ncumbrance paramount to the
interest OF the United States in the property
OF the Pacific railroads shall exist and be
lawfully liable to be enforced, to direct the
action OF the departments of the treasury
and of Justice in the protection of the inter-
ests of the United States by redemption or
through judicial proceedings, including fore
closures of the government liens.
In view of the fact that congress has for a
number Of years almost constantly had under
consideration various plans for dealing with
the conditions existing between these roads
and the government 1 have thus far felt JUS
tilted in Withholding action under the statute
above mentioned.
In the case Of the Union Pacific company,
however the situation has become especially
and Immediately urgent. Proceedings have
been instituted to foreclose a first mortgage
upon those aided parts of the main lines upon
which the government holds a second and
subordinate mortgage lien. In consequence
of those proceedings and increasing cOmpli-
cations, added to the default occurring on the
ISL udy Ol January, 1885, cOGd1uOn Will be
presented at that date so far as this COM
pany is concerned that must emphasize the
mandate of the act of 1887, and give to execu-
tive duty under It's provisions a more imper-
ative aspect.
Therefore, unless congress shall otherwise
direct, or shall have previously determined
upon different solution of the problem
there will hardly appear. to exist any reason
for delaying beyond the date of the default
above mentioned such executive action as
will promise to subserve the public interests
and save the government from the loss
threatened by further inaction.