liberal appropriation for educational purposes in the Indian
Territory.

In accordance with the act of Congress approved March 3, 1899, the
preliminary work in connection with the Twelfth Census is now fully
under way. The officers required for the proper administration of the
duties imposed have been selected. The provision for securing a proper
enumeration of the population, as well as to secure evidence of the
industrial growth of the Nation, is broader and more comprehensive than
any similar legislation in the past. The Director advises that every
needful effort is being made to push this great work to completion in
the time limited by the statute. It is believed that the Twelfth Census
will emphasize our remarkable advance in all that pertains to national
progress.

Under the authority of the act of Congress approved July 7, 1898,
the commission consisting of the Secretary of the Treasury, the
Attorney-General, and the Secretary of the Interior has made an
agreement of settlement, which has had my approval, of the indebtedness
to the Government growing out of the issue of bonds to aid in the
construction of the Central Pacific and Western Pacific railroads.
The agreement secures to the Government the principal and interest of
said bonds, amounting to $58,812,715.48. There has been paid thereon
$11,762,543.12, which has been covered into the Treasury, and the
remainder, payable within ten years, with interest at the rate of 3 per
cent per annum, payable semiannually, is secured by the deposit of an
equal amount of first-mortgage bonds of the Pacific Railway companies.
The amounts paid and secured to be paid to the Government on account of
the Pacific Railroad subsidy claims are:

Union Pacific, cash $58,448,223.75
Kansas Pacific, cash 6,303,000.00
Central and Western Pacific, cash 11,798,314.14
Notes, secured 47,050,172.36
Kansas Pacific--dividends for deficiency
due United States, cash 821,897.70
--------------
Making a total of 124,421,607.95

The whole indebtedness was about $130,000,000, more than half of which
consisted of accrued interest, for which sum the Government has realized
the entire amount less about $6,000,000 within a period of two years.

On June 30, 1898, there were thirty forest rese