The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1898-12-10
THE PACIFIC RAILWAYS.
Plan Adopted for Making the Gov
crnment Secure.


eminent secure.
In my last annual message / stated: THE
Union Pacific railway, main line. was sold
under the decree or the United states court
for the district of Nebraska, the LIST and
End OF November OF this year. The amount
due the government consisted OF the prin-
cipal OF the subsidy bonds, S323J.5i2. and
the accrued interest thereon, $3l,2ll, 5ll.OT,
making the total indebtedness soS,4iS, 223,75.
The bid at the sale covered the first mort
gage lien and the entire mortgage claim OF
the government, principal and interest.
This left the Kansas Pacific case uncon-
cludcd. By decree OF the court IN That
case an upset price for the property was
fixed at a sum which would yield 10 the
government only S2,G0VVQ upon its lien,
The sale at the instance or the government
was postponed first to December 10. 1897,
and later upon the application OF the
United states was postponed to February
is, 1878. Having satisfied myself that the
interests OF the government required that
an effort should be made 10 obtain n larger
sum ! directed the secretary Of the treas
ury, under the act passed March 3, 1881, 70
pay out OF the treasury 10 the persons en-
titled to receive the same the amounts duo
upon all prior mortgages upon the eastern
and middle divisions of said railroad out
OF any money IN the treasury not other
wise appropriated. WhCreupOn the attOr-
ncy gracral prepared a petition 10 be pre-
scented TO the court Offering TO redeem said
prior Hens In such manner as tho court
might direct and praying that thereupon
the United states might be hold 20 be
Subrogatcd TO all the rights OF said priOr
lien holders and that receiver might he
appointed TO take possession OF the mort
gagged premises and maintain and operate
the same until the court or congress other
wise directed. TherCupon the reorgani2a-
ton committee agreed that ~ said petition
was Withdrawn and the sale allowed to pro-
coed on February 10 they would bid a sum
al the sale which would realize 10 the gov
eminent the entire principal OF IT'S debt, &c.
10000 Relieving that no better price could
bc obtained ana approaching the difficult
ties under which the government would
labor n II should become the purchaser or
the road az the sale, IN the absence Of any
authority by congress 10 take charge or
and operate the road, directed that upon
the guaranty OF a minimum bid which
should give the government the principal
or It's debt. the sale should proceed. BY this
transaction the government secured an ad-
vance or 1SQ3,000 over md above the sum
which the court had fixed as the upset
price, and which the reorganization COM
mttee had declared was The maximum
which they would pay for the property
IL IS a gratifying fact that the result OF
c.ic system and the Kansas Pacific lire
- that the government has received on
account q It's subsidy claim the sum or
$ihfel LILO, an increase Of Sis997 1876 over
the sum which the reorganization commit
ice originally agreed TO bid for the join
property, the government receiving rs
whole claim. principal ard Interest. In tbe
Union Pacific ana the principal OF rs debt |
on the Kansas Pacific railroad. steps have
81
lien upon the Central Pacific Railroad COM |
pany, but before action was commenced |
congress passed an act. approved July z. |
the secretary or the treasury, the attor- |
ney-gcneral and the secretary OF the IN |
terror and their successors IN Office with |
full power TO settle the indebtedness 10 |
the government growing out Of the issue |
OF bonds IN aid Of construction OF the Cen |
lI9i y nc arg w estern racine pord-aidcd |
railroads subject 70 the approval OF the |
president. No report has yet been made /
to me by the commission thus created |
Whatever action Is bad looking TO a set
Element OF tho Indebtedness In qccord- |
nrce With the act referred 20 VIII be duly |
submitted 10 congress-
The Postal service.
The postal service OF the country adj
yances with extraordinary growth. Within /
20 years both the revenues and tho fxpendi- /
lures 81 the post Office department have |
they have nearly doubled. our postal busl-
ness grows much more rapidly than our
population. u row involves an expendi- |
ture q N0o,000Q00 q year numbers 73.oC0
post Offices and eurolls 100000 employees
This remarkable extension Of service |
which "a an accurate index Of the public
conditions presents gratifying evidence OF
the advancement of education, OF the In
crease or communication and business nc- |
tiWty and 81 the Improvement of mail
facilities leading 70 their constantly aug
menting use.
Demand. Of the War.
The war with spain laid new and exccp-
tiOnal labors on the post Office department. |
The mastering Of the military and naval
forces or the United States required special |
mail Arrangements for every camp and
every campaign. The communication be-
tween home and camp was naturally eager !
and tXptctant II some OF the larger |
places Of rendezvous as many as 5000 ltt-
icrs day required handling. This rccCs-
slty was met by the prompt detail ard dis
patch or experienced men from the Cs;ab-
iishtd force ard by directing all the instru-
me rtalltlcs OF the railway mail and post
OfilCp necessary l
new need. Congress passed an act empow
sring the postmaster-general 20 establish
lflces or branches at every military camp
or station, and under this authority the |
postal machinery was speedily put into
incctivc operation.
Under the same authority, when our
forces moved upon Cuba, Porto Rico and
followed by the postal service. Though
The act e. congrers authorized the appoint
mcut OF poetmastCTs where necessary. a. |
was early determined that the public IN
.erests would be best subsCrved not by |
lew designations. but by the detail OF ex-
oerienced men familiar with every branch
n the service. and this policy was steadily
he .heatcr OF coniict came into our pos
.ession, Il became necessary 10 reeatabiish
nail facilities for the resident population
- well as TO provide them for our forces
~ occupa don. and thr former requirement.
vas met through the extension and appli.
,ation OF the latter obligation. gave the
equisite authority, and the same general
branches OF civil ADMINISTRATION under
military occupation. The details are