People's voice. [volume] (Wellington, Sumner County, Kansas) 1890-1917, 1898-03-03
EooJ,e D;lIc are the only pills to take
'AOO>' I iiAo with HOODS Sarsaparil!a.

1AOOH : iiAo with Hoods S2rsaparilla
enormous amount of money which
has been advanced, that there never
has been any intention on the part
OF the companies to pay any interes,
and that in all these accounts there
Is no claim for interest due to the
government for the enormous ad,
vanceS which have been made in the
last thirty years on these various
accounts.
Up to 1880, in the financial re-
ports of the secretary ofthe treasury,
there WAS an Item entitled "balance
OF accrued interest due the United
States on interest account" The
government had put in the hands of
those people these bonds, payable in
thirty years, drawing 6 per cent, and
the understanding was that the COM
panles were to pay semi annually the
interest as it accrued on the bonds.
The fact was that they Immediately
began to default in the payment of
interest on the bonds, and that the
government had to advance the in.
tereSt on its own bonds for the COM
panies. Up to 1880 there was in
the accounts of the secretary of the
treasury, as have said, an item Of
balance Of accrued interest due the
United States on interest account"
That was intended to be really in
ierest to be paid to the government
on account of these enormous adj
vances, both the interest which was
being paid on the bonds by the gov.
eminent and the principal of the
bonds to be considered simply as
the principal of the government debt.
The interest up to that time on this
advance OF interest amounted, on the
Central Pacific, to $4,99S, SlI; on the
Kansas Pacific to SS72,5S9; on the
Union Pacific to S4,O72,654; on the
Central branch of the Union Pacific
TO S4O6, 347; on theWeStern brar oh to
$3.50, 29S, and on he Sioux City and
Pacific to S326,Ol3, making total
of Sll,0O5,2l+, making a total OF
Sll, OO6,2l4 of interest due the gov
eminent for the advances which had
been made in this way,
A short time ago introduced a
resolution directing the secretary of
the treasury to inform us why that
had been dropped. He replied in
this way:
The balance found due the United
States thus stated ION the account
when L have just read represents the
whole amount OF bonds issued, inter-
est aC d per cent per annum on that
amount, and interest on the accrued
interest compounded semi annually
at = per cent, less The repayments,
with Interest thereon.
This method Of stating the accounts
arose from the Interpretation of the
law then held by the accounting Of
hcerS that the interest on the bonds
which Was met by the United States
was repayable by the companies semi
annually before the maturity. of the
bonds.
The companies took exception to
this ruling Of the accounting officers,
and the question as 10 the date at
which the interest which had been
paid by the United States was repay
able by the companies was the chief
issue in the suit Of the United States
vs.. The Union Pacific Railroad Com
pany (9l .. s.. 72D, In deciding this
case the court held that the Obliga-
ton OF the company TO the United |
States is TO pay both principal and in.
terest when the time fixed for the
of the principal and interest
has arrived, buS not to pay the inter.
est as II accrues, and adds that il il |
was intended to exact the payment of |
interest before the maturity of the
bonds, Congress would have so de.
clared in unequivocal language. lSee
also SO U. S., GA, and 80 U. S., 725.
The supreme court having thus de-
cided that there was no debt on &C.
count OF the interest paid by the
United States until the maturity OF
the bonds, the practice of charging
interest on accrued interest was dis.
continued, aud the column represent.
ing 'baance of accrued interest due
the United States on interest account
referred to in the resolution, disap-
peared from the statements embodied
in the annual reports of the secretary
of the treasury.
II seems 10 me very singular indeed
that in that decision the face Of the
bonds, which expressly states that
the interest was payable semi annu-
ally, was not taken into considera-
ton; but without attempting to crit
lcise in any way the decision of the
court, It appears strange that with
that construction the secretary of
the treasury has not put back that
item OF interest on interest advanced
by the government of the United
States since the bonds began to
mature.
We find that the bonds began to
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