Warren sheaf., 1898-12-08


an act of justice and will be much appre-
ciated. by the brave men who left; their
homes and employni ents to help thescoun-.
try IN its, emergency.
THE PACIFIC RAILWAYS,
Plan Adopted for Making the Gov
ernment Secure.
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, the 1st and
End Of November of this year. The amount
due the government consisted of the prin-
cipal of the subsidy bonds, $272SG5l2. and
the accrued interest thereon, $31, 81, ,51l07,
making the total Indebtedness '$5S, 44S, ,223.7
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-
cluded. BY a decree of the court in that
case ease an an upset Sc t price re T FOR the property was
government only $2,5O0,000 upon it's lien,
The sale at the instance Of the government
was postponed first to. December 49, 1897,
United States was postponed to February
49,. 1898. Having satisfied myself that the
interests Of the government REQUIRED that
sum directed the secretaryssof the treas
ury, under the act passed March g. 1887; to
pay out Of the reasury to the. persons en-
upon all prior m ortgages upon the eastern
and middle divisions of said railroad out
Of any. money in the treasury not other
wise appropriated 2Whereupon the attor-
ney general prepared a petition to be pre-
sented to the court offering to redeem said
prior liens in such manner as the court
the United States might be held to be
Esubrogated to all the rights Of said prior
lien holders and that receiver might be
appointed to take possession of the mort
gagged premises and maintain and operate
the same until the court or congress other
wise directed: Thereupon the reorganiza-
was withdrawn and the sale allowed to pro
ceed on February 16 they would bid sum
at the sale which would realize to the gov
1903, Believing thatn better price could Ill,
be obtained and appreciating the difficult,
ties under which the government would
the road at the sale, in the absence of any
authority by congress to take charge of
and operate the road, I directed that upon
the tn guaranty of a minimum bid which
of it's debt, the sale should proceed. BY this
transaction the government secured an ad-
which the court had fixed as the upset
price, and which the reorganization com
mittee had declared was the maximum
which HI h they Weuld pay for the property.
these proceedings against the Union Pa
c1flc system and the Kansas Pacific line
IS that the government has received on
se4751, ,22s75 an increase Of SIS ee7 7ies Is owe! e.
the sum which the reorgan MIA ton commit
tee originally agreed to bid for the Joint
property, the government receiving it's
whole claim, rincipal and interest, in the
Union Pacific and the principal Of its debt
been taken to foreclose the governments
lien upon the Central Pacific Railroad com
pany, but before action was commenced
congress passed an act, approved July z,
1898, creating commission consisting of
the secretary Of the treasury, the attor-
err +Si ana the secretary Of the in
full power to settle the Indebtedness to
the government growing out of the issue
trail Pacific and nd Western Pacic Gt
railroads, subject to the approval of the
president. No report has yet been made
Whatever action Is had looking to a set
tlement Of the Indebtedness In accord
ance with the act referred to will be duly
submitted to congress. * ~ Z. -.
=" The Postal Service. N~iIA So
The postal service of the country ad-
vances with extraordinary growth. Within
20 years both the revenues and the expendi-
lures Of the post office department have
they have nearly doubled. Our postal busi-.
ness .grows much more rapidly than our
population: IT now involves an expend1-
post ofnces and 'enrolls 100000 employees. ;eso
This remarkable extension of service
WHICH Is an accurate index :: e: Of the public.
the advancement. Of education, Of the in
crease of communication and business ac-
facilities leading to their, constantly aug aug
mentingg use. r,,a~
The war with spain laid new and excep-
tional labors on the post office department
forces of the United States required special
mail arrangements for every camp and