The evening times., 1898-12-05

TO the increase of twenty five majors pro-
vided for in section one hereof
The Importance OF legislation for the
permanent increase of the army is there
fore manifest, and the recommendation of
the Secretary of War for that purpose
has my unqualified approval. There can
be no question that at this time, and
probably for some time in the future. 100,-
900 men will be none too many TO meet the
necessities of the situation. At all events
whether that number shall be required
permanently or not, the power should be
given to the President TO enlist that force
II in his discretion ii should be necessary;
and the further discretion should be given
him to recruit for the army within the
above limit from the inha bitants of the
islands with the government Of which we
are charged.
1t is my purpose TO muster out the en-
tire volunteer army as soon as the Con-
gress shall provide for The increase of the
regular establishment. This will be only
act of justice and will be much appre-
ciated by the brave men who left their
homes and employment 10 help the coun-
try in its emergency.
THE PACIFIC RAILROADS.
III my IdSl annual message l stated.
1.-The Union Pacific Railway, Main Line
was sold under the decree of the United
States Court for the district of Nebraska
on the lst and % of November of this
year. The amount due the Government
consisted of the principal of the subsidy
bonds. 81, ,236, ,512, and the accrued interest
thereon, 3l,211. III IS, making the total in
debtedness SIS, AS. 22233 70. The bid at the
sale covered the first-mortgages lien and
the entire mortgage claim of the Gov
ernment 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 S2500,000 upon its lien.
The sale at the instance of the Govern
ment was postponed first to December Is.
1897, and later upon the application of the
United States was postponed TO the 18th
day of February, 1898.
Having satisfied myself that the inter-
ests of the Government required that an
effort should be made to obtain larger
sum, | directed the Secretary of the
Treasury, under the act passed March g.
1857, TO pay out of the Treasury to The
persons entitled TO receive the same the
amounts due upon all prior mortgages
upon the Eastern and Middle Divisions CT
said railroad out of any money in the
Treasury not otherwise appropriated
Whereupon the Attorney General prepar-
ed 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 the
rights of said prior lien holders and that
receiver might be appointed to take pos
session of the mortgaged premises and
maintain and operate the same until the
court Congress otherwise directed
ThereupOn the reorganiZati ton committee
agreed that if said petition was with
drawn and the sale allowed to proceed on
the 18th of February, 1885, they would bid
a sum at the sale which would realize TO
the Government the entire principal of its
debt, s6,303, 900.
Believing that no better price could be
obtained and appreciating the difficulties
under which the Government would labor
If 1t should become the purchaser of the
road at the sale, in 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
an advance of $3 S03, ,000 over and above the
sum which the court had fixed as the up
set price, and which the reorganization
committee had declared was the maximum
which they would pay for the property
1t is a gratifying fact that the result
of these proceedings against the Union Pa
cific system and the Kansas Pacific line
is that the Government has received on ac-
count of its subsidy claim the sum of s64-
751 ,223.15 an increase of s1S,997, 1876 over
the sum which the reorganization commit
faa ,.;cyi,a 11p fr Gov 81 to;..
property, the Government receiving its
whole claim, principal and interest, on the
Union Pacific and the principal of its
debt on the Kansas Pacific Railroad
CENTRAL PACIFIC FORECLOSURE.
Steps had been taken to foreclose the
Governments lien upon the Central Pa
cific Railroad Company but before action
was commenced Congress passed an act
approved July Z, 1888, creating commits
sion consisting of the Secretary of the
Treasury, the ACKNOWLEDGEMENT, and the
Secretary of the Interior, and their sue
cessors in office, with full power to settle
the Indebtedness to the Government grow
ing out of the issue of bonds in aid of the
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 commission thus created. Whatever
action is had looking to a settlement of
the indebtedness in accordance with the
act referred to will be duly submitted to
the Congress.
NEW TEMPLE OF JUSTICE.
I deem it my duty to call to the atten-
tden of Congress the condition of the
present building occupied by the Depart
ment of Justice. The business of that de-
partment has increased very greatly since
it was established in its present quarters.
The building now occupied by it is neith-
er large enough nor of suitable arrange
ment for the proper accommodation of
the business .of the department. The Su-