Evening star., 1896-12-05
have already examined $3.50 of the 1900

nave already examined $3.50 of the 1900
claims. s,,--',~sr 49,. -s---
The Pacific Roads.
Under the head Of "Bond-aided Rail-
with the Joint resolution of June 10, 1896,
requiring him TO continue the issue of
patents to bonas fide purchasers of lands
sold by bond-aided railroads, but he says
he declined to issue patents to all surveyed
lands on the application of the Central
Pacific. He saysa 1.-The representatives Of
the Central Pacific further contended that
ment, and that. if'it were the lands are not
covered by the government mortgage, and
cannot be heldcto secure the same
Il do not agree ewith either of these state
ments. The tables presented clearly show
that the Central Pacific railroad is in de-
1ault TO the government, but whether SO
or not, 1t unquestionably will be on Janu-
ary l, next. or, about thirty days hence,
ness, together with thirty years interest
tnereon, will fall due, and must be le-
deemed by the government.
In answer to the contention that the
government lien is not secured by The lands
granted the Central and Union Pacific COM
panles. section 5 of the act Of 1852 p1 Divides
that on the refusal failure of company
to redeem its bonds any part thereof
the Secretary of the Treasury may take
possession of all lands which at the time of
said default shall remain in the ownership
OF the company
Land Grants as Security.
For the above reasons 1 have declined to
patent lands to the Unicn Pacific railroad
or the Central Pacific railroad, except in
cases where it can be shown that the lands
for which patents are asked have been sold
to bona fde purchasers. 1nasmuch as the
subsidy bonds issued by the government to
aid in the construction of these roads are
falling due from time to time and must be
redeemed by the government as they ma
ture. while the roads are unable to reim-
burse the treasury for the amount SO paid.
and for the further reason that a bill Is
now pending in Congress providing for a
fundlng Of this Indebtedness, / deem 1t the
part of prudence for this department to re-
tain whatever of the property Of the roads
II may have in its possession or in its con-
troll until there shall be an adjustment Of
Inc amounts due the government
ihe Secretary says he has requested an
opinion from the Secretary of the Treasury
as to whether the Central Pacific Is in de.
whether. If in default, he is authorized to
patent lands granted to bond-aided rail-
roads even when they have been sold to
bona fide purchasers The Secretary by
IN pllcation questions the authority of the
concurrent resolution directing him to con-
tlnue the issue of patents.
CommissiOn Idea Stepped On.
Referring to the railroad commissioners
recommendations for commission to settle
the Indebtedness of the bond-aided roads
the Secretary says:
congress Is not likely to delegate to any
commission the power to settle this indebt-
edness, without making such settlement
subject to Its approval; but whether Con-
sress would do so or not, the delay conse-
quent upon the appointment of commits
sion and its work would be so great that
most or all of the bonds issued in aid of
these roads would mature and the govern
ment be called upon to redeem the same.
In the meantime, other bills would be in
troduced seeking to effect other settle
ments. and In the end the government
would receive less for its claim than it
would If a compromise by the cash pay
ment OF lump sum should be effected in
the immediate future and the government
become relieved thereby from all connec-
ton with these roads.
New Rontls Objected To.
This Indebtedness has been a subject of
attempted legislation for many years past,
ana 1t seems impossible to frame any re-
heWal or extension Of the loan which will
be acceptable both to the legislators and
the indebted companies. A funding of the
debt which contemplates the government
accepting long time bonds for its advances
Will not remove this troublesome subject
from the consideration of Congress, and
would probably result in renewed measures
for relief of the reads being proposed as
those bonds appI oach maturity. Irs.,--r b..
In my judgment it is much better for
the government 70 accept lump sum in
cash for its claim against these roads, if
by DONG SO, that clAim can be settled and
the connection between the government
ana the only roads it has ever aided by di-
rect subsidy be effectually severed Such
solution of this vexed question would meet
with the hearty approval of the people gem
orally. and relieve the legislators and all
branches of the government of a trouble
some problem and trying responsibility"
with regard 10 the Nicaraguan Canal
Company chartered by the government in
1882 the Secretary says a preliminary re-
port CT the company submitted to him
shows that no work was done during the
present year.
In conclusion the Secretary calls attention
to the cramped quarters in the Interior De-
partment, the large sum paid for rent an
nually Teachng $4,000 last year) and
earnestly recommends the erection Of an
other structure on block adjacent 10 the
present building adequate to accommodate
all branches of the department..