The times., 1898-12-06

Porto Rico are no less important than
those relating to finance. commerce and
administration is my earnest desire
that these problems may be considered
by competent experts and that every
thing may be done which the most re-
cent advances in sanitary science can
offer for the protection of the health OF
our soldiers in those islands and of cur
citizens who are exposed 10 the dangers
OF infection from the Importation of ye.-
low fever. / therefore renew my recon-
mendation that the authority Of Congress
may be given and a suitable approp. ia
tion made to provide for a commission of
experts to be appointed for the purpose
indicated.
INCREASE OF THE ARMY.
Under the act of Congress approved
April &C. 1898. authorizing the President
in his discretion, upon a declaration of
war by Congress. or a declaration by
Congress that war exists" / directed the
increase of the regular army to the maxi
mum of 5000. authorized in said act
There are now in the regular army
51.s62 officers and men. In said act 1t was
provided THAT at the end of any war in
which the United States may become in
volved the army shall be reduced to n
peace basis by the transfer in the same
arm of the service or absorption by pro-
motion or honorable discharge under such
regulations as the Secretary of War may
establish of supernumerary commissioned
officers and the honorable discharge or
transfer of supernumerary enlisted men;
and nothing contained in this act shall
be construed as authorizing the perma-
nent increase of the commissioned or en-.
listed force of the regular army beyond
that now provided by the law in force
prior to the passage of this act, except as
TO the increase of twenty-five majors pro-
Vided for In section one hereof
The Importance of legislation for the
permanent increase of the army is there
fore manifest, and the recommendation of
the Secretary of War for that purpose
has my unqualified approval. There can
be no question that at this time and
probably for some time in the future, lGO-
900 men will be none too many to meet the
necessities of the situation. At all events
whether that number shall be required
permanently or not, the power should be
given to the President to enlist that force
IL in his discretion IL should be necessary:
and the further discretion should be given
him to recruit for the army within the
above limit from the inhabitants of the
islands with the government of which We
are charged.
1t Is my purpose to muster out the en-
tire volunteer army as soon as the Con-
gress shall provide for the increase of the
regular establishment This viii be only
an act of justice and will be much appre-
ciated by the brave men who left their
homes and employment to help the coun-
try in its emergency.
THE PACIFIC RAILROADS.
In my last annual message / stated:
The Union Pacific Railway, Main Line,
was sold under the decree of the United
States Court for the district of Nebraska
on the 1st and I'd of November of this
year. The amount due the Government
consisted of the principal of the subsidy
bonds s27. 36.5l2, and the accrued interest
thereon, S3l. .2l1. 20, making the total in
debtedness SIS. AS, ,223 s5. The bid at the
sale covered the first-mortgage lien and
the entire mortgage claim of the Gov
ernment. principal and interest"
This left the Kansas Pacific case uncon-
cluded. BY decree of the court in that
case an upset price for the property was
fixed at a sum which would yield to the
Government only s2,500,G00 upon its lien.
The sale at the instance of the Govern
ment was postponed first to December Is,
1875. anu isilcL upon Vi lIic
United States was postponed 10 the 18th
day of February, 1898.
Having satisfied myself that the inter-
ests of the Government required that an
effort should be made to obtain a larger
sum, 1 directed the Secretary of the
Treasury. under the act passed March g.
1857, TO pay out of the Treasury to the
persons entitled TO receive the same the
amounts due upon all prior mortgages
ha nd AJsHIla of
said railroad out of any money in the
Treasury not otherwise appropriated
Whereupon the Attorney General prepar-
ed petition to be presented TO the court
Offering to redeem said prior liens in such
manner as the court might direct. and
praying that thereupon the United States
might be held to be subrogated to all the
rights of said prior lien holders and that a
receiver might be appointed TO take pos
session of the mortgaged premises and
maintain and operate the same until the
court or Congress otherwise directed
Thereupon the reorganization committee
agreed that if said petition was with
drawn and the sale allowed to proceed on
the 18th of February. 1895, they would bid
a sum at the sale which would realize to
the Government the entire principal of its
debt, 81, 800, 900.
Believing that no better price could be
obtained and appreciating the difficulties
under which the Government would labor
If 1t should become the purchaser of the
road at the sale, in the absence of any
authority by Congress TO take charge of
and operate the road / directed that upon
the guaranty of a minimum bid which
should give the Government the principal
of its debt the sale should proceed. BY
this transaction the Government secured
an advance of s.. SG3 0o9 over and above the
sum which the court had fixed as the up
set price, and which the reorganizatio
committee had declared was the maximum
which they would pay for the property.
1t is a gratifying fact that the result
of these proceedings against the Union Pa
cific system and the Kansas Pacific line
is that the Government has received on ac-
count of its subsidy claim the sum of S6i-
75l, %. -, an increase of S1s,s97, 1876 over
the sum which the reorganization commit
lee originally agreed TO bid for the joint
property, the Government receiving its
whole claim, principal and interest on the
Union Pacific, and the principal of its
debt on the Kansas Pacific Railroad.
CENTRAL PACIFIC FORECLOSURE.
Steps had been taken to foreclose the
Governments lien upon the Central Pa
cifc Railroad Company, but before action
was commenced Congress passed an act
approved July I. 1898, creating commits
sion consisting of the Secretary of the
Treasury. the Attorney-General, and the
Secretary of the Interior, and their sue
cessors in office, with full power to settle
the indebtedness to the Government grow
ing out of the issue Of bonds in aid of the
construction of the Central Pacific and
Western Pacific bond-aided railroads.
subject to the approval of the President.
No report has yet been made to me by
the commission thus created. Whatever
uctinr is had lnnkinp IN q settlement of