Kansas City daily journal. [volume] (Kansas City, Mo.) 1892-1897, 1896-12-05

the other duties which recent legislation
has devolved upon it.
Under the head of bond-aided railroads,
the secretary says he has complied with
the joint resolution of June 10, 1895, re
quiring him to continue the issue OF pat
ents TO bona 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 says: THE representatives of
the Central Pacific further contended their
road is not in default TO the government.
and that IL IL were the lands are not COW
cred by the government mortgage and
cannot be held TO secure the same. 1 do
not agree with either of these statements.
The tables presented clearly show that the
Central Pacific railroad is in default to
the government; but whether so or not,
IL unquestionably will be on january l
next or about thirty days hence when s..
49,, 900 additional of its Indebtedness. .togeth,
er with thirty years interest thereon, will
fall due and must be redeemed by the gov
ernmsnt-
''In answer to the contention that the
government lien is not secured by the
lands granted the Central and Union Pa
cific companies, section of the act Of 1862
provides that on the refusal or failure of
a 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 default shall remain In the owner
snip OF Lna company. For the above rea-
sons / have declined 10 patent lands to the
Union Pacific railroad or the Central Pa
cific railroad. except in cases where il can
be shown that the lands for which the
patents are asked have been sold to bona
hde purchasers Inasmuch as the subsidy
bonds issued by the government TO aid in
the construction of these roads are falling
due from time 10 time, and must be re-
deemed by the government as they mature
while the roads are unable to reimburse
the treasury for the amount 50 paid, and
the further reason that bill is now pend
ing in congress providing for a funding of
this Indebtedness, deem Il the part of
prudence for this department 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 ne has requested an
opinion from the secretary OF the treasury
as 20 whether the Central Pacific is in de-
fault, and the attorney general as TO wheth-
er. If in default he is authorized to nat
ent lands granted 10 bond aided railroads
even when they have been sold to bona
hde purchasers. II will he noticed here
that the secretary. by Implication cues,
tons the authority OF the concurrent res,
olution directing him 10 continue the issue
Of patents.
Referring to the railroad commissioners
recon1ns ilCations for a commission 10 set
tic the Indebtedness Of the boui aided
roads. the secretary says: Congress IS not
likely to delegate 10 any commission the
power to settle this Indebtedness without
making such settlement subject to its ap-
proyal, but whether congress would 90 50
or not, the delay consequent upon the ap-
pointment Of a commission and its work
would be 50 great that most or all OF tho
bonds issued IN aid OF these roads would
MATURE and the government be called upon
% redeem The same. In the meantime, 9TH
Fr bills would D. introduced seeking 70 .
feet other settlements and In the END the
government would receive less for its claim
Than II would u "a compromise by the ca sh
payment 90 a lump sum should he effected
In the immediate future and the govern
msnt heeono relieved thereby from all con-
uectou with these roads. This Indebted
neSS has been subject OF ATTEMPTED IegIs-
iatign Tor many years past. and Il seems
Impossible 20 frame any renewal or eEten-
sion OF th" loan vhirh. will be acr,epta hle
20 both the legislators and the indebtcs!
companies. funding OF tho debt which
coniemPlates the government accepting
long time bonds for its advances will not
remove this troub', som" subject from the
consideration ot congress. and would prob.
ably result ir renewed measures Tor relief
os the roads being proposeI as those bonds
approach maturity
In my judgment. h is much better for
the government 20 accept lump sum TN
cash for ITS Cla5m against these roads j.
by doing 20 that claim can be settled and
she connection between the government
and The only roads 1t has ever aided by iii.