Daily new dominion. [volume] (Morgantown, W. Va.) 1897-1906, 1897-12-07
The Pacific Railroads.

The Union Pacific railroad, main line. was
court for the district of Nebraska on the 1st
and I'd of November of this year. The
amount due tie government consisted of the
principal of the subsidy bonds. $27. 230, 5I2,
and the accrued interest thereon, $31 211-
I'll. 70. making the total Indebtedness $5S, 44S,-
2S3 IS. The bid at the sale covered the first
mortgage lien and the entire mortgage claim
of the government, principal and interest
The sale of the subsidized portion of the
Kansas Pacific line. upon which the govern
ment holds a second mortgage lien, has been
postponed at the instance Of the government
to December l6 1897. The debt of this diyi-
sion of the Union Pacific railway to the gov
eminent on November l. 1897, was the prin.
cipal of the subsidy bonds. sd, 303, o O. and the
unpaid and accrued interest thereon, S. GIG
800 49, making totol of Sl2. 929 $685.
The sale of this read was originally adver-
tised for November A. but for the purpose of
securing the utmost public notice of the event
it was postponed until December 10th, and a
second advertisement of the sale was made.
BY the decree of the court the upset price on
the sale of the Kansas Pacific will yield to
the government the sum of So, 500, 900 over all
prior liens, costs and charges. If no other or
better bid is made this sum is all that the
government will receive on its claim of nearly
$l3000,060. The government has no infor-
ders or better bid than the minimum
amount herein stated. The question pre-
scented, therefore, is: Whether the govern
ment shall under the authority given ii by
the act of March 3, 1887, purchase or redeem
the road in the event that a bid is not made
by private parties covering the entire govern
ment claim. To qualify the government to
bid at the sale will require deposit of 5000
000 as follows: In the government cause
$500, 70 and in each of the first mortgage
causes 500 o. and iii the latter the depost
must be in cash. Payments at the sale are as
follows: Upon the acceptance of the hid a
sum, which with the amount already de-
posted, shall equal - per cent of the bid the
balance in installments of % per cent thirty
forty and fifty days after the confirmation Of
the sale. The lien on the Kansas Pacific
prior to that OF the government on the Both of
July. 1897 principal a.Id interest amounted
TO 81, l9l, 04S.11 The government, therefore
should it become the highest bidder will have
to pay the amount of the first mortgage lien
I believe that under the act of 1887 it has
the authority to do this, and in absence of
any action by congress l shall direct the sec
rotary of the treasury to make the necessary
deposit as required by the courts decree to
qualify as bidder and to bid at the sale a
sum which will at least equal the principal of
the debt due to the government; but suggest
in order to remove all controversy that an
amendment of the law be Immediately passed
tA plt'sitiE SiNiIiS SucH powers ana apDrODri-
atlng ~ genera, terms whatever sum is suffi-
Client therefor.
IN SuS h an important mat Ter as the govern
ment becoming the possible owner of railroad
property which 1t must perforee conduct and
operate, feel constrained to lay before con.
gress these facts for its consideration and ae-
tion before the contamination of the sale. I.
is clear to my mind that the government
should not permit the property to be sold at
a price which will yield less than one-haIf of
the principal of its debt, and less than one
fifth of its entire debt, principal and interest.
But whether the government rather than
accept less than its claim, should become a
bidder and thereby the owner of the property.
l submit to the congress for action
The library building provided for by act of
congress, approved April Is, 1886, has been
completed and opened to the public. 1t
should be matter of congratulation that
through the foresight and muniffcence of
congress the nation possesses this noble treas
ure house of knowledge 1t is earnestly to be
hoped that having done so much towards the
cause-of education, congress will continue to
develop the library in every phase of re-
search to the end that it may be not only one
of the most magnificent, but among the rich
est and most useful libraries in the world
Civil Service Reform.
The important banch of our government
known as the civil service, the practical i'm
provement of which has long been a subject
Of earnest discussion, has of late years re-
ceived increased legislative and executive ap.