PACIFIC RAILROAD DEBT * ITS SETTLEMENT ONE OF M'KIN '.EY'S GREATEST .ACHIEVEMENTS. Tile Government linn lteallxed 8124,421,- a?l From ThU Source—Tliat Kvery tlitng Wu Collected I* Due to tlie Wtidoin of the Preneut Administration* "The settlement of the Pacific Rail road indebtedness must be ranked as one of the greatest achievements of President McKinley's administration," J said General Charles Dick, member of Congress from the Nineteenth dis trict of Ohio, aud secretary of the Re publican National Committee, In Washington, the other day. "All ef forts, either by Congress or the execu tive departments prior to 1897 were of little avail iu protecting the Govern ment's interest in these roads. In fact, there were grave doubts whether the Government would succeed in being reimbursed, even in part, the vast sum expended by the United States in aid of their construction. But the Government has realized in cash or its equivalent, within two , years, the sum of $124,421,071 out of about $130,000,000 that was due, and more than half the money collected was for accrued interest that had not beeu paid. "The discovery of gold in Califor nia, the rapid increase in wealth and population in the territory west of the Itocky Mountains, and a movement on the part of the older States to es tablish closer connections during the civil war with those outlying commu nities, led Congress In 1802 to author ize the construction of a railroad to the Pacific Ocean. The direct benefit to be derived by the Government was its use for postal, military and other purposes. The act of July 1, ISO 2, \ chartering the Union Pacific Railroad Company, was not sufficiently liberal, and therefore nothing was accom plished under its provisions. Though the Union Pacific Company was or ganized no one was found who would venture money iu the construction of the road. "On July 2, ISO 4, Congress amended the act of 1802 by making provisions more favorable to the companies. The act of ISO 2 provided that the Govern ment should have a first mortgage on the property of the company, while the act of ISO 4 provided substantially that, for the bonds the Government should issue in aid of the construction of the road, it should take a second mortgage. Two companies were or ganized under the provisions of the act of 1804, and entered energetically upon the work of construction. The road was built from the California end eastward by the Central Pacific Railroad Company, and from the Mis souri River westward to the common meeting point at Ogden by the Union Pacific Company. "Their liues were united May 10, ISO 9, anticipating by more than seven years the time required by Congress, i he Union Pacific Company construct ed 1034 miles, aud the Central Pacific 743 miles. The road of the latter company was subsequently extended 140 miles, and the lines of the two companies from the Missouri River to San Francisco represented a mileage of 1917 miles. "In aid of these roads and connect ing branches the United States issued bonds to the amount of $04,023,512. Failing to be reimbursed for the in terest paid on these bonds it became necessary, in protection of the inter ?sts of the Government, to pass the act of May 7, 1878, known as the 'Thur mau Act.' This act provided that the whole amount of compensation which might from time to time be due to the railroad companies for services ren dered the Government should be re • tained by the Goverument. one-half to be applied to the liquidation of the interest paid and to be paid by the United States upon the bonds issued to each of the companies, the other half to be turned into a sinking fund. But it soon became apparent that, with the approaching maturity of bonds is sued In aid of the roads, the provi sions of the 'Thurman Act' were not adequate to the protection of the Gov ernment's interests. Efforts were per sistently made looking to a settlement of this vast lndeGtr-dness, but without success. So recently as the Fifty fourth Congress an attempt was made to pass a bill to refund the debts of the Pacific Railroad companies, but it was defeated in the House by a vote of 107 nays and 102 yeas. "On .Tan. 12, 1897," continued Gen eral Dick, "the day following the de feat of the funding bill, the Attorney General was informed by the Presi dent that default had occurred in the payment of the Union Pacific and the Kansas Pacific indebtedness to the Government, and he was directed to make arrangements to secure, as far as practicable, the payment of their indebtedness. An agreement was en tered into betweeq the Government * and the reorganization committee of the Union Pacific Railroad, by which the committee guaranteed, should the Government undertake 'to enforce its lien by sale, a .minimum bid for the Union and Kansas Pacific lines that would produce to the Government, over and above any prior liens and charges upon the railroads and sink ing fund, the net sum of $45,754,059.90. In performance of this agreement the bid was guaranteed by a deposit of ' $4,500,000. "Bills were then filed in the United States Circuit courts for the foreclos ure of the Government lien. The de crees entered for the sale of the roads not being satisfactory to the Govern ment, papers were prepared for an ap peal. Then the reorganization com mittee came forward with an offer to Increase its bid to $50,000,000 Instead of $45,754,050.99. Subsequently, to settle all points in dispute, the reor ganization committee decided to aban don this second bid and to increase the minimum amount to be offered for the property to $58,448,223.75, being the total amount due the Government on account of the Union Pacific Road, as stated by the Secretary of the Treasury, including the sum of $4,- 540,368.20 cash in the sinking fund. Such an amount was bid by the reor ganization committee on Nov. 1, 1897, and the sale was confirmed by the court on Nov. C, 1897. After the con firmation of the sale the whole amount was paid into the Treasury of the United States in convenient install ments, thus relieving the Government from any loss whatever upon its claim tor principal and interest due upon its subsidy, and bringing to a final and most satisfactory termination one of these long-standing and troublesome questions. "In the case of the Kansas Pacific Indebtedness, by decree of the court an upset price on the sale of the prop erty was fixed at a sum which would yield to the Government $2,500,000. The reorganization committee in con ference with the Government declared its purpose of making no higher bid than that fixed by the decree of the court, so that the Government was confronted with the danger of receiv ing for its total lien upon this line, amounting to nearly $13,000,000, prin cipal and interest, only the sum of $2,500,000. Believing the interest of the Government required that an ef fort should be made to obtain a larger sum, and the Government having the right to redeem the incumbrances upon the property, which were prior to the lien of the Government subsidy, by paying the sums lawfully due in re spect thereof out of the Treasury of the United States, the President, on February 8, 1898, authorized the Sec retary of the Treasury to pay the amounts lawfully due upon the prior mortgages upon the eastern and mid dle divisions of said road. "Then the reorganization committee of the Kansas Pacific offered to bid for the road a sum which would real ize to the Government the whole amount of the principal of the debt, $0,303,000. It was believed that no better price than this could be ob tained at a later date If the sale should be postponed, and it was deemed best to permit the sale to pro ceed upon the guarantee of a mini mum bid which would realize to the Government the whole principal of its debt. The sale thereupon took place, and the property was pur chased by the reorganization commit tee. The sum yielded to the Govern ment was $0,303,000. It will thus be perceived that the Government se cured an advance of $3,803,000 on ac count of its lien, over and above the sum which the court had fixed as the upset price, and which the reorganiza tion committee had declared was the maximum which they were willing to pay for the property. "The result of these proceedings against the Union Pacific system, em bracing the main line and the Kansas Pacific line, is that the Government has received, on account of Its sub sidy claim, the sum of $04,751,223.75, which is an increase of $28,997,103.70 over the sum which the reorganiza tion committee first agreed to bid for the joint property, leaving due the sum of $0,588,900.19 interest on the Kansas Pacific subsidy. The prose cution of a claim for this amount against the receivers of the Union Pa cific Company in 1898 resulted in se curing to the Government the further amount of $821,897.70. "The indebtedness of the Central Pacific Kailroad Company to the Gov ernment became due January 1, 1898, when default in payment was made by the company. The deficiency ap propriation act of July 7, 1898, ap pointed the Secretary of the Treasury, the Secretary of the Interior, and the Attorney-General a commission with full power to settle the indebtedness to the Government growing out of the issue of bonus to aid in the construc tion ol' the Central Pacific and West ern Pacific roads, subject to the ap proval of the President. "An agreement for the settlement of this indebtedness was entered into be tween the commissioners and the rail road companies ou February 1, 1899. The amount then due to the United States for priucipal and interest upon its subsidy liens upon the Central Pa cific and Western Pacific railroads was $58,812,715.48, more than one-half of which was accrued interest upon the principal debt. The agreement for settlement provided for the funding of this amount into promissory notes bearing date of February 1, 1899, pay able respectively on or before the ex piration of each successive six months for ten years, each note being for the sum of $2,940,035.78, or one-twentieth of the total amount due. The notes bore interest at the rate of 3 per cent, per annum, payable semi-annually, and had a condition attached to the effect that, if default be made either in the payment of principal or inter est of either of said notes or in any part thereof, theu all of the notes out standing, principal and interest, imme diately became due and payable, not withstanding any other stipulation of the agreement of settlement. "It was further agreed that the pay ment of priucipal and interests of the notes should be secured oy the depos it with the United States Treasury of $57,820,000 face value of first re funding mortgage 4 per cent, gold bonds, to be thereafter issued by the Central Pacific or its successor having charge of the railroads then owned by the company, such bonds to be a part of an issue of not exceeding $100,000,- 000 in all, aud to be secured by mort gage upon all railroads, equipments and terminals owned by the Central Pacific Railroad Company, the mort gage being a first Hen upon the prop erty. "In pursuance of another provision of the agreement, the four earliest ma turing notes were purchased by Spey- er & Co., Marcb 10, 189!), and the pro ceeds, amounting to $11,702,543.12, and accrued Interest to the date of pay ment, $36,771.02, in all $11,798,314.14, were received by the Treasury March 27, 1899, as part payment of the In debtedness of the Central Pacific and Western Pacific Railroad Companies. The properties of the various compan ies comprising the Central Pacific sys tem were subsequently conveyed to a new corporation called the Central Pa cific Railway Company, which latter executed the mortgage and bonds pro vided for by the agreement of i Jttle ment. "On October 7, 1599, bonds we e de livered to the Treasury Departmrat by the Central Pacific Railway Company to secure the outstanding notes held by the Treasury. The United States, therefore, holds the notes of the Cen tral Pacific Railroad Company guar-, anteed bythe Southern Pacific Rail road Company to the amount of $47,- 050,172,30, bearing interest payable semi-annually at the rate of 3 per cent, per annum, and secured by the deposit of an equal amount of first mortgage bonds of the Pacific Railway Com pany, thus providing, beyond any doubt, for the sure and gradual pay ment of the whole of this subsidy debt, and providing in the meantime for the payment of interest at the rate of 3 per cent, upon the unpaid bal ances. The United States, through the settlement agreement tnus entered in to, will be reimbursed the full amount of the principal and interest of the Central Pacific and Western Pacific debt, aggregating $58,812,715.48. The amounts due to the United States March 1, 1900, from Pacific rail roads on account of bonds issued in aid of their construction, were as fol lows: J 83 ISi a OS 112» hi £ -AST 3 5 288 8 I •» o . K 00 I ?» g C £££ !CO a fen® ® b. -sfa,® 1 r? -• \ -K | a N is | 'tis! § MILUN •*afia- i a : : : £§ ; i • H: : : m ... Q: : : U a • H 2 : : S5 £ 6 • i CO .2'- : h |s| : W "g c_, w * V • •si. c£ a £ zC z * : H ' £ 3 Z ri o c sign £ *SO < O'jO "Efforts ae now pending looking to the collection of this indebtedness. "Out of au indebtedness of about $130,000,000, more than one-half of which consisted of accrued interest, the Government has realized in cash, or its equivalent, the sum of $124,421,- 070.'J5, within a period of less than two years. No other administration in the history of the United States lias ever so quickly, so thoroughly, and so satisfactorily enforced the set tlement of large claims held by the Government against business corpora tions, nor has any similar settlement ever previously been made by the Government to such good financial ad vantage. The claims were due. The President insisted upon their collec tion. and this was done in a prompt aud business-like manner." The Democratic Millstone. The adoption by the Democrats ot Nebraska of a Populist platform, at the dictation of Bryan, shows that the | free silver agent is still willing to take up with "any old thing" for the sake of catching a few votes, but his fool performance has riyped the Dem ocratic party up the back, aud they are wondering how they can get rid of the millstone that hangs about tlieir necks. Next November will see the end of Bryan.—Norwich (Ohio) Re llector. Our Porto Rican Governor. La Correspondeneia de Puerto Rices in its issue of May 3, liKX), said: ''Un less reports are false, Mr. Allen will walk with slow paces until he be comes acquainted with the path. He will then do that which a good gov ernor should do. lie is not commit ting himself unconditionally to any party, and is governing with the aid of Portoricaus of recognized ability aud character. In this he is discreet, aud we welcome our new governor." Spoiling Croker'g Vacation. The New York official who so se riously disappointed Boss Croker by conducting his office In an honest man ner after having secured bis election on the Tammany ticket is being men tioned as a Democratic candidate for Governor. Such unpleasant rumors are calculated to detract materially from the pleasure of Boss Croker'a European outing. Wliere li That Slninit? We would humbly inquire or the Minneapolis Journal and some other ghost dancing contemporaries where they find the great anti-Republican slump that was to punish the perpe trators of the Porto Rican bill? The election returns show heavy Republi can gains almost everywhere.— Sioux Falls (S. D.) Leader. Not of That Kind. Texas has been thoroughly soaked with water, but there is no probability of its becoming a prohibiten State, Mysterious Mine* In Afrlcm. Besides the reefs which have been discovered, there exists in Rhodesia an enormous quantity of "old workings," mines which were worked in ancient times, but have long since been aban doned, says the London Telegraph. By whom these mines were worked is and will probably remain forever a mystery. From old pottery and tools which have been found it is evident that these old workings were exca vated by or under the direction of men of knowledge and intelligence su perior to those possessed by the pres ent inhabitants of the country. Gold was extracted from these mines by smelting, many furnaces having been found, and alongside of them ancient molds in which ingots were cast. Sev eral ruins have also been discovered in Rhodesia, the magnitude and work manship of which proves that men of superior civilization either inhabited or else occupied this part of the world a few thousand years before us. To them are probably due the ancient workings which have been found. With the primitive instruments at their command these miners of a past age were only able to scrape the sur face of the gold-bearing reefs, so that the quantity of gold which has been taken from the mines hardly affects their value, -.vhile they are a precious indication to the prospector and ena ble him to test the reef below the sur face. and, as a rule, the 112 ite of most of these olu workings seems to have been selected by competent men, who chose the richest reefs. Odd Causes of a Queer Wedding. One of the most roninntic marriages that has occurred In Bowling Green, Ohio, for some time took place when Harrison Cheney, who is about seven ty years of age, was married to Miss Agnes May, aged eighteen years. The marriage was in the way of the fulfill ment of a promise made many years ago. Cheney, when a young man, lived in a Pennsylvania town, and was a lover of one who married another. She took sick afterward, and upon her deathbed she asked Cheney to look after a little daughter. This he did, and she in time grew up and was married. She was taken sick with consumption, and, too. passed away, but not before she had pledged Cheney to look after her little girl, then two years old. Ills de votion to-the little child culminated in their marriage. Hoar* of Went Point Cnrtetn. The students of the West Point Mil itary Academy have just one hour and a half recreation a day, except Wednesdays and Saturdays, when they have six hours. They are called at 5:30 in the morning, and breakfast at fl in the summer, and In the winter they are called at C and breakfast at 0:30, and their day is divided into tasks that continue until taps is sounded at 10 o'clock at night and all lights must go out. "Bob*" I* Not Superstitions. Field Marshal Roberts has no belief in tlie thirteen superstition, yet he no tices occurrences of thirteen at table. He has related how, one New Year's Day, thirteen sat down to dinner. Eleven years afterward they were all alive, though most of them had been through ilie Indian mutiny and eight of them had been severely wounded. A cemetery for pet animals has re cently been opened near Paris. It has separate quarters for dogs, cats and birds. RICH, BUT WRETCHED a <- V ) Fight on for wealth, old "Money Bags/' / \ your liver is drying up and bowels wear- p—7—,* .. .■ll - ..yl _ 7 ing out, some day you will cry aloud for (mi 11 " health, offering all your wealth, but you \¥J)/ 1 *vill not get it because you neglected Nature Vx in your mad rush to get gold. No matter iJJLL what you do, or what ails you, to-day is the day—every day is the dav —to keep ' Wv 1 XjCvl J/ watch of Nature's wants —and help your - bowels act regularly — CASCARETS will /JM&LA rdl/ help Nature help you. Neglect means bile in the blood, foul breath, and awful pains jr in the back of the head with a loathing and bad feeling for all that is good in life. iSSpM r nf Don't care how rich or poor you are, you — f W I 112 /ivy--If can't be well if you have bowel trouble, \ A) j/ r 'li \ \\\ you will be regular if you take CASCA i II !V? \ RETS—get them to-day— CASCARETS— p n V \_ JV7 I in metal box; cost JO cents; take one, eat ® like candy and it will work gently while 1111 > 12y . - . you sleep. It cures; that means it strength ens the muscular walls of the bowels and gives them new life; then they act regularly and naturally; that is what you want — it is guaranteed to be found in— THE IDEAL LAXATIVE . raftcoftcto CANDY 25c*. To any needy mortal suffering from bowel troubles and too poor to buy CASCARETS we will lend a box free. Address Sterling Remedy Company, Chicago or New York, mentioning advertisement and paper. 1 I • 'in Elephant Aolnit the HlfpipM. It is a fact that pipers in Highland regiments ar» posted to companies, and always follow them wherever they go. On one occasion a company of the Gordons were marching from a place caued Jellunder to Fort Kangra, situ ated at one of the lower ranges of the Himalayas. Accompanying them was an elephant, on which were placed sick and exhausted men. After a few days' march we were deprived of music on account of the piper's feet becoming blistered, and he was rele gated to the back of the elephant. On the last day's march, before entering a new station, some one suggested that in order to brighten us up the piper might be requested to play on the elephant's hack at the head of the company. To this the officer as sented, and accordingly the piper was handed n.s pipes. When he began to tune them it was evident that the ele phant had no appreciation of such sounds, for he shook his head, flapped his big ears menacingly, raised his trunk, with which he embraced the piper round the waist, and violently threw him and his pipes into a ditch as a mark of his disapproval of such music EnglUh Bank Note Peculiarities. It is not everyone who is aware that a Bank of England note is not of the same thickness all through. The pa per is thicker in the left-hand corner, to enable it to retain a keener Im pression of tlie vignette there, and It Is also considerable thicker In the dark shadows of the centre letters and be neath the figures at tlie ends. Count erfeit notes are invariably of one t sick ness throughout. Vonn; People'* Clirl*4laii Union# The Transportation A (rents from Now Eng land States. Connecticut. T.ew 1 crk and New Jersey, of the Young Peop.e's Christian Union, which meets in Atlanta, Ga., July 10, 1900. have selected as the official route the Southern Railway-the route through the " Land of the Sky.' l Special trains have been arraneed and it will be one of the most suc cessful meetings ever held by the Vnion. Full particulars from Transportation Agents or Southern Ry. Ticket Olfce9, 271 and 1185 Rroadwav, New York. Alex. S. Thweatt, Eastern Pass. Agt.. 11K5 Broadway, New \ ork. Fargo, N. D., with a population of less than 11,000, has eigHty-seven secret socie ties. Jell-O, the New Dessert Pleases all the family. Four flavors:— Lemon, Ornngo, Raspberry and Strawberry. At your grocers. 10 cts. It's only fare that the conductor should have a little change. To Care a Cold In On* Day, Take LAXATIVE RROMO QCIKIWB TABLITS. All I druggists refund the money if it falls lo cure. K. W. Gaova's signature Is on each box. 2Sc. * Whistling is the ill wind that blov.B no body good. Rev. J. R. Bridees, Columbia, Mo., says Please send me one bottle of Frey's Vermi luge. None to be had here. The end seat in a summer car has lost none of its popularity. 1 Have you ever experienced the joyful sensation of a good appetite? You will if you chew Adams' Pepsin Tutti Fruttl. An lowa concern is making farm wagons wholly of steel. DON'T STOP TOBACCO SUDDENLY Tt injures nervous system to i the reason? Hair N needs help just as % anything else does at % times. The roots re- < ► quire feeding. When \ ► hair stops growing it K ? »■* mh % looks |fl% ■ nal P vigor acts almost instantly \ ion such hair. It ► \ awakens new life in / the hair bulbs. The ► effect is astonishing. < Your hair grows, be < comes thicker, and all \ \ dandruff is removed. ►< \ , And the original ► color of early life is „ ► restored to faded or * / gray hair. This is < * always the case. < k and am really astonished at the 1 r . good it has done in keening my ► best tonic 1 have tried, aud I . < shall continue to recommend it to "4 y my friends." k J Mattie Holt, ►. k Sept. 24,1808. Burlington, N. C. ' < l If you do not obtain all the benefits w j you expected from the use of the liair L Vigor, write the Doctor about it. 4 T DR. J. C. AT£ll, Lowell, Mass. . ygggggsgms f.' W!OUT!) For your family's comfort W 1 HIRES Rootbeer k will contribute more to it than HH ■KN, tons of Ice and a gross of fan*. JKSm SfrallonsforMcents. Writ* for list of prcmiamt offerol CnABLESLHIKES CO. JHU Happy! Crlppe and Liver Disease*. -- KNOWN 4U.OBISSHTI. J3(, Beet Cough Syrup. Tastes Good. Cat W in time. Sold by druggists. m