The herald., 1896-12-05

hence, when So, ,432, 900 additional of Its
indebtedness, together with thirty years
interest thereon, will fall due and must
be redeemed by the government
"In answer to the contention that the
government lien is not secured by the
lands granted the Central and Union
Pacific companies, section of the act IF
1862 provides that on the refusal or fall
ure of company to redeem its bonds or
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 said
company. For the above reasons have
declined to patent lands to the Union
Pacific railroad or the Central Pacific
railroad except in cases where 1t 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 to aid
in the construction of these roads are
falling due from time to time and must
be redeemed by the government as they
mature, while the roads are unable to
reimburse the treasury for the amount
so paid and the further reason that a
bill Is now pending in congress provid-
ing for funding Of this indebtedness,
I deem it the part Of prudence for this
government to retain whatever of the
property Of the roads it may have in its
possession or in its control until there
shall be an adjustment of the amounts
due the government"
The secretary says he has requested an
opinion from the secretary of the treas
tn bofl lo ha ntra1 fio
is in default, and the encouragement
as to whether if in default, he is author
lied to patent lands granted to bond
aided railroads, even when they have
been sold to bona fide purchasers 1t will
be noticed here that the secretary by i'm
ment subject to its approval, but whether
coecurrent resolution directing him to
continue the issuance of patents.
Referring to the railroad commission
er's recommendation for a commission
to settle the indebtedness of the bond
aided roads. the secretary says: Con
gress is not likely to delegate to any
commission the power to settle this in
debtedness, without making such settle
would meet the hearty approval of the
congress would do so or not, the delay
consequent upon the appointment of a
commission and its work would be so
great that most or all of the bonds issued
in aid Of these roads would mature and
the government be called upon to re-
deem the same. In the meantime other
bills would be introduced seeking to eff
feet other settlements and in the end
the government would receive less for
its claim than it would if a compro-
mise by the cash payment of lump
sum should be effected in the immediate
future and the government become re-
lieved thereby from all connections with
these roads. The Indebtedness has been
subject of attempted legislation for
many years past, and it seems impossi-
BILE to frame any renewal or extension of
the loan which will be acceptable to both
the legislators and the indebted COM
panies. A funding of the debt which
contemplates the government accepting
longtime bonds for it's advances will
not remove this troublesome subject, and
would probably result in renewed meas
ures for the relief of the roads being pro-
posed as those bonds approach maturi-
ty.
In my judgment it is much better for
in cash for it's claim against these roads,
if by doing so that claim can be settled
and the connection between the govern
ment and the only roads it hasnver aided
by direct subsidy by effectually severed
Such resolution of this vexed question
would meet the hearty APPROVAL of the
people generally and relieve the legisla-
tors and all branchs of the government
of troublesome problem and a trying
possibility"