The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1897-07-21
BOND-AIDED RAILROAD LANDS.
BLISS ISSUES INSTRUCTION. TO
LAND OFFICERS.
Outlines the Policy to be Pursued
Toward the Roads and the
Innocent Purchasers.

WASHINGTON, July 20.-Secretary
Bliss has issued instructions to the
Land Offices which will in substance
limit the right of bond-aided railroads
to patents for lands to those lands sold
by the company to bona fide purchas-
ers prior to the date of default by such
companies on the payment of their
bonds or interest thereon.
These instructions, the first formal
expression of the administration on the
subject, outline the policy to be pur-
sued toward the roads and the inno-
cent purchasers of them, and the sig
nificent change is in the prior to date
of default" restrictions. The instruc-
tons revoke and are substitutes for
previous ones issued under date of No
vember Doth and December IL, 1895;
June 11th and December 20, 1896, and
January I'd, January 18th and Feb
ruary II, 1897.
The following companies are desig-
mated as having been severaaly in de-
fault at the time stated: Union Pacific,
main line, Omaha, Neb., to Ogden,
Utah, January 1, 1897; Kansas Pacific,
now part of the Union Pacific SYSTEM
November l, 1885, Central Branch
Union Pacific, January II, 1896; Gem
trail Pacific (not including the Western
Pacific, January /, 1896; Western Pa
cific, now part of the Central Pacific,
January 1, 1897; Sioux City and Pa
cific, no default has occurred.
The instructions set out that the
Granting Act contemplated and au-
thorized the disposition by any COM
pany of the lands earned by it by the
construction of the road, and the pro-
visions of Section ) thereof 02 State,
1922 while extending the lien of the
United States on account of the sub
sidy bonds over all the property of the
road including land granted, clearly
limits any forfeiture which may be de-
clared by the United States by reason
of a default in the redemption or pay
ment of such bonds to the lands which
at the time of the default remain in the
ownership of the company; that is, the
lands which have not therefore been
actually sold to purchasers thereof.
Continuing, Secretary Bliss quotes
another enactment in the same line,
and defining the original one, and then
gives the following directions:
You will therefore prepare clear lists
for my approval, as a basis for pat
ents to be issued, of all lands granted
to and earned by these respective COM
panieS, where, before the time of de-
fault herein named, such lands have
been in good faith and for a valuable
consideration sold to actual purchasers
by the railroad company by which they
accrued. In all instances you will re-
quire such proof of sale to bona tide
purchasers as you may deem necessary
to clearly demonstrate the character
and time of the sale in question, which
proof should be attached to and sub
mitted with the lists to which it APP
plies. when forwarded for approval.
The issuance of patents to bond-aided
railroads for lands not actually sold to
bona fide purchasers before default IS
hereby suspended. A mortgage or
holder of bonds secured by mortgage
will not be considered a purchaser with
in the meaning of these instructions"