The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-12-06

was sold under the decree of the United
States court for the district of Nebras-
ka- the LIST and End of November of this
year" The amount due the govern
ment consisted 9 the principal of the
subsidy bonds. 81, 236512, and the ac-
crued interest thereon, SS1, 211, 511. or,
making the total indebtedness SIS, AS
223.75. The bid at the sale covered the
first mortgage lien and the entire mort
gage claim of the government, princi-
pal and interest
This left the Kansas Pacific case I'M
concluded. BY a decree of the court in
that case an upset price for the prop
erty was fixed at a sum which would
yield to the government only $2,500,006
upon its lien. The sale at the in
stance of the government was post
poned, first to Dec. 10, 1897, and later,
upon the application Of the United
States. was postponed to Feb. 16, 1898.
Having satisfied myself that the in
terests of the government required that
an effort should be made to obtain a
larger sum, I directed the secretary of
the treasury, under the act passed
March 3, 1887, to pay out of the treas
ury to the persons entitled to receive
the same amounts due upon all prior
mortgages upon the middle and eastern
divisions of said railroad, out of any
money in the treasury not otherwise
appropriated
Whereupon, the attorney general pre-
pared a 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 rights of said prior
lien holders, and that a receiver might
be appointed to take possession of 6he
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that if said petition was withdrawn and
the sale allowed to proceed on Feb. 16,
they would bid a sum at the sale which
would realize to the government the en-
tire principal of its debt, $6,903,000. Be-
lieving that no better price could be
obtained, and approaching the difficult
ties under which the government would
labor if it should become the purchaser
of the road at a sale, in the absence of
any authority by congress TO take
charge of and operate the road l di-
rected that upon the guaranty of a
minimum bid which should give the
government the principal of its debt
the sale should proceed. By this trans
action the government secured an adj
vance of $3,S09,000, over and above the
sum which the court had fixed as the
upset price and which the reorganiza
ton committee had declared was the
maximum which they would pay for
the property.
1t is gratifying to know that the re-
suit of the proceedings against the
Union Pacific and the Kansas Pacific
line is that the government has re-
ceived on account of its subsidy claim
the sum of s64, Isl, 22S.75. an increase of
SIS, 1897. 1885 over the sum which the re-
organization committee originally
agreed to bid for the joint property, the
government receiving its whole claim
principal and interest in Union Pacific
and the principal of its debt on the
Kansas Pacific railroad.
Steps had been taken to foreclose the
governments lien upon the Central Pa
cific railroad company, but before ac-
ton was commenced, congress passed
an act, approved July Z, 1898, creating
commission, consisting of the secre-
tary of the treasury, the attorney gen.
eral and the secretary of the interior
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
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 COM
mission thus created. Whatever ac-
ton is had looking to a settlement of
the Indebtedness in accordance with
the act referred to, will be duly sub
mitted to congress.
NEW BUILDINGS WANTED.
I deem it my duty to call to the at
tention of congress the condition of the
present building occupied by the de-
partment Of justice. The business of
that department has increased greatly
since it was established in it's present
quarters. The building now occupied
by it is neither large enough nor of
suitable arrangement for the proper ac-
commodation of the department. The
supervising architect has pronounced
it unsafe and unsuited for the use to
which it is put. The attorney general
in his report states that the library of
the department is on the fourth floor
and that all the space allotted to it is
so crowded with books as to dangerous
ly overload the structure. The first
floor is occupied by the court of claims.
The building is of an old and dilapi-
dated appearance, unsuited to the dig
nifty which should attach to this i'm
portant department.
A proper regard for the safety, COM
fort and convenience of the officers and
employees would justify the expendi-
ture of a liberal sum of money in the
erection of a new building of commodi-
Gus proportions and handsome appear
ance upon the very advantageous site
already secured for that purpose, in
Guiding the ground occupied by the
present structure and vacant ground
adjoining to that, comprising in all a
frontage of POI feet on Pennsylvania
mia avenue and a depth of 1876 feet.
In this connection l may likewise re-
fer to the inadequate accommodations
provided for the supreme court in the
capitol, and suggest the wisdom of
making provision for the erection of a
separate building for the court and its
officers and library upon available
ground near the capitol.