The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-12-08

Lduk QuAy 10 tNlIttldlg IItStIl tulS SUD-
ject to the consideration to the Congress.
On January l. 1897, with the amount al
ready matured more than $4,000 600 Of
the principal Of the subsidy bonds issued
by the United States in aid Of the con-
struction Of the Union Pacific Railway,
including it's Kansas line, and more than
$6,000.000 Of like bonds, issued in aid Of
the Central Pacific Railroad including
those issued to the Western Pacific Rail
road Company, will have fallen due and
paid, or must on that day be paid by the
Government. Without any reference to
the application OF the sinking fund now in
the treasury, this will create such de-
fault on the part Of these companies to the
Government as will give it the right to as
enee institute proceedings to forecl0se
it's mortgage lien. In addition to this
Indebtedness 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 $4,000 900
on account Of the Union Pacific lines, and
exceed S2l 100000 on account Of the Cen
trail Pacific lines. The situation Of these
roads and the condition Of their indebted
ness to the Government have been fully
set forth in the reports Of various COM
mittees to the present and prior Con-
greses; and as early rs 1887 they were
thoroughly examined by special COM
mission appointed pursuant to an act OF
Congress. The considerations requiring
adjustment Of the Governments relations
to the companies have been clearly pre-
scented, and the conclusion reached with
practical uniformity, that If these rela-
tons are not terminated, they should be
revised upon n 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 mortgage or other incum-
brance paramount to the interest OF the
United States in the property Of the Pa.
cifc railroads shall exist and be lawfully
liable to be enforced, to direct the action
OF the Department of Treasury and Of
Justice in the protection of the interest
Of the United States by redemption or
through judicial proceedings, including
foreclosure Of the Government liens In
view Of the fact that the Congress has for
a number Of years almost constantly had
under consideration various plans for
dealing with the conditions existing be-
tween these roads and the Government,
l have thus far felt justified in with.
holding action under the statute mention
ed above.
In the case Of the Union Pacific, how
ever, the situation has become especially
and Immediately urgent. Proceedings
have been instituted to foreclose a first
mortgage upon these aided parts Of the
main line, upon which the Government
holds second and subordinate mortgage,
lien. In consequence Of those proceedings
and increasing complications. added to
the default occurring on the LIST day Of
January, 1897, a condition will be present
ed on that date, so far as this company is
concerned, that must emphasize the man
date Of the act Of 1887, and give to exec.
utive duty under its provisions a more
imperative aspect. Therefore, unless
Congress shall otherwise direct, or shall
have previously determined upon q differ
ent solution Of the problem there
will hardly appear any reason
for delaying, beyond the date OF
default above mentioned such ex-
ecUtive action as will promise to sub
serve the public interests and save the
Government from the loss threatened by
further inaction.
AGRICULTURAL DEPARTMENT..
The Department of Agriculture is 50 IN
timately related TO the welfare of our
people and the prosperity OF our nation,
that 1t should constantly receive tha care
and encouragement Of the Government.
From small beginnings it has grown to
be the center of agricultural intelligence
and the source Of aid and ENCOURAGEMENT
to agricultural efforts Lfrge sums Of
money are annually appropriated for the
maintenance of this department, aud it
must be confessed that the legislation re-
lating to it has not always been directly
IN the interest of practical farming, or
properly guarded against waste and cx-
From the report Of the Secretary it
appears that through careful and pru-
dent financial management he has an
nuaAy saved a laIge sum from his APP
preparations aggTegating during his liz
cumbency and up to tile close of the
present fiscal year nearly one fifth Of the
entire amount appropriated.
The Secretary reports that the value
Of our exports Of farm products during
the last fiscal year amounted to S57O,-
100000, an increase of S17,O0O,00O over
those Of the year Immediately preceding
this statement, is not the less welcome
because Of the fact that Notwithstanding
such increase, the proportion Of exported
agricultural products to our total exports
Of all description fell off during the wear.
The benefits of an increase in agricul-
-ural exports being assured the decrease
in its proportion to our total exports is
the more gratifying when we consider
that it is owing to the fact that such
total exports for the year increased
more than $75, 100000.
The large and increasing expectation
of our agricultural products suggests
the great usefulness Of the organization
lately established in the department for
the purpose Of giving to those engaged
n farming pursuits, reliable information