The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1898-12-10
THE PACIFIC RAILWAYS.
Plan Adopted for Making the Gov
eminent Secure.

ernmeht 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 LIST and
End of November of this year. The amount
due the government consisted of the prin-
cipal of the subsidy bonds, $27,23G,5l2, and
the accrued interest thereon, $3l I'll ,ollOI,
making the total Indebtedness SJS4iS,22375
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 decree of the court in that
case an upset price for the property was
fixed at sum which would yield to the
government only S2,50O,000 upon its lien.
The sale at the instance of the government
| was postponed first to December -, 1897,
and later upon the application OF the
| United states was postponed 10 February
! 16. 1898. Having satisfied myself that the
| interests of the government required that
| an effort should be made to obtain n larger
| sum | directed the secretary of the treas
ury, under the act passed March 3, 1887, to
| pay out OF the treasury to the persons en-
| titled to receive the same the amounts due
upon all prior, MORTGAGES upon the eastern
| and middle divisions of said railroad out
| of any money in the treasury not other
| wise appropriated. Whereupon the attor-
ney general prepared a petition to be pre-
scented 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 possession of the mort
gagged premises and maintain and operate
the same until the court or congress other
wise directed. Thereupon the reorganiZa-
| ton committee agreed that IL said petition
was withdrawn and the sale allowed to pro-
| coed on February l6 they would bid a sum
| at the sale which would realize to the gov
ernment the entire principal of it's debt, &c.
100000. Believing that no better price could
be obtained and appreciating the Difficult
ties under which the government would
labor III 1t should become the purchaser OF
the road at the sale, I'm the absence OF any
authority by congress to take charge OF
and operate the road. directed that upon
the guaranty OF minimum bid which
should give the government the principal
of its debt. the sale should proceed BY this
transaction the government secured IN ad-
vance OF $3,SO3OOO over and above the'sum
which the court had fixed as the upset
price, and which the reorganization COM
mittee had declared was the maximum
which they would pay for the property.
IL Is gratifying fact that the result OF
these proceedings against the Union Pa
cihc system and the Kansas Pacific line
account Of its subsidy claim The sum OF
$a 7jl. 237j an increase of SIS, 997 1875 over
the sum which the reorganization commit
tee originally agreed to bid for the joint
property. the government receiving its
whole claim, principal and interest. in III"
Union Paciiic and the principal OF its debt
on the Kansas Pacific railroad. Steps have
been taken to foreclosc 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 at;or-
ney-gcneral and the secretary OF the in
terror and their successors in office, with
full power TO settle the Indebtedness TO
the, government growing out of the issue
of bonds In aid of construction OF the Cen
trail Pacific and Western Pacific bond-aided
railroads. subject to the approval Of the
president IT, No No rePOrt has yet been made
Whatever action Is had looking TO a set
Element OF the indebtedness in accord
ance with the act referred 20 will be duly
submitted to congress.
The Postal Service.
The postal service OF the country ad- |
vances with extraordinary growth. Within
70 years both S d and the expendi
multiplied threefold. In the last ten years
they have nearly doubled. Our postal busi-
population, II now Involves an expendi-
ture OF 0o,0OO.0o0 a year, numbers $4,000
post offices, and enrolls 100000 employees
This remarkable extension Of a service
which is an accurate index OF the public
conditions presents gratifying evidence OF
the advancement OF education, Of the in
crease of communication and business ac-
tivity, and OF the Improvement of mail
facilities leading TO their constantly aug
menting use.
Demands of the War.
The war with spain laid new and excep- |
tional labors on the post office department.;
The mastering OF the military ard naval
FORCES or the UnitCd states required Speclal
mail arrangements for every camp and |
every campaign. The communication be- |
tween home and camp was naturally eager
and oxpectant In some Of the larger |
places OF rendezvous as many as 10000 let |
tcrs day required handling This neces- |
slty was met by the prompt detail ard DIS
iished force and by directing all the instru- |
mentalities OF the railway mail and post
Office service rs far as necessary to this |
new need. Congress passed an act empow. |
erng the postmaster-general 10 establish |
offices or branches at every military camp |
or station, ard under this authority the /
postal machinery was speedily put into |
effective operation.
Under the same authority, when our |
forces moved upon Cuba, Porto Rico and /
the Philippines, they were attended ard /
followed by the postal service. Though |
the act OF congress authorized the appoint
rlent OF postmasters where necessary, II |
was early determined that the public In |
terests would be best subserved not by /
new designations. but by the detail OF exi |
perienced men familiar with every branch |
OF the service, ard this policy was steadily |
followed. When the territory which was 1
the theater OF conflict came into our pos |
session. II became necessary TO reestablish /
mall facilities for the resident population |
as we'll as TO provide them for our forces |
OF occupation, and the former requireme nj /
was met through the extension and appli- |
cation Of the latter obligation. I gave the |
requisite authority, and the same general |
principle was applied to this as TO other |
military occupation. The details are J