The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-12-05
The Central Pacific Railroad
Clearly in Default.
LUMP SUM OUGHT TO sE PAID.
Secretary Francis Fayors q Cempro-
Millions of Acres Yet I'm the Pub
lie Domain - state should Have
order to seenre Reclamation

Washington, Dee s-The annual report
of Secretary OF the Interior Francis was
made public today. IL deals with all the
various branches OF the interior depart
Hient during the past year. and makes a
number of important recommendations
II proposes solution OF the vexeo prob
lem o. the bond-aissed railroads. deals ex-
hausiiveiy with the pension aduafnistra-
lion. reviews the progress OF the Dawes
commission negotiations and touches up
on various matters Of special significance
in the West
Under the bead OF f,ond-sided railroads
the secretary says nc mas complied with
the joint resolution OF June 10. lSss. re-
qiiriBg him 10 continue the issue OF pat
enks 10 bona fide purchasers of lands sold
by bond-sIded railroads. but says he de-
cifned TO Issue pateats TO all surveyed
lands on application OF the Central Pa
ciae. lie says:
The representatives of the Central Pa
CHIC further contsaded that their read Is
not IN default 70 the government. and
that II II were. the lands are not covered
De neld 10 secure the same. do not agree
with either OF these statements The
tables presented clearly show the Central
facinc road Il IN default 20 the govern
menl, but whether 50 or not, u nnqueS-
tionsbiy will be on January ] next. or
thlr1y DAYS hence. when 8. $3.50 aadl~
ttouat OF fte Indebtedness tcGetfari Win
thirty years interest thereon. wih fall
due and must be redeemed by the gov
ernment.
IN answer to the contention that the
government lien Is not secured by lands
granted the Central and Union Pacific
companies section OF the act OF 1882
provides that on refusal or failure or the
company 70 redeem It's bonds, or any part
thersof. the secretary Of the treasury
may take possession OF all lands which at
the time OF said default snail remain In
possession OF the company.
Fer the above reasons l have declined
10 patent lands TO the Union or the Cen
irel Pacific railroad, except IN cases
where u can be shown that the lands for
which patents are asked have been sold
to bona fide purchasers. Inasmuch as the
subsidy bonds issued by the government
10 ali in the construction of these roads
are falling due from time 20 time anu
aust be redeemed By the government as
they mature. while the roads ara unable
20 reimburse the treasury for the amount
80 paid and the further reason that fsiii
ss now pending in congress for fundtng
OF this indebtedness. l think IL the part nf
prudence for this government 10 retain
whatever property OF the roads Il may
have Ia its possession or control until
there shall have been an adjustment OF
amounts due the government
The secretary has requested an opinion
from the secretary OF the treasury as 10
whether the Central Pacific Is in default.
and OF the attorney genef Al, IL the road
Is Ia aefaasts whether he IS authorized TO
grant lands 70 bond-aided railroads, even
when they have been sold 10 bona fide
purchasers.
Ii viii be noticed that here che secretary
Is implication questions the authority
OF the resolution directing him to continue
the issue of patents.