1877, has proved satisfactory. Pensions are now paid at 18 agencies with equal promptness and less inconvenience than when the number was 58. A more uniform system of payment has been secured, at a reduction on salary account alone of $142,000.

The Commissioner reports an increased efficiency in the clerical force of his bureau, and attributes it to the comparatively few changes in the personnel of the office. Merit has been regarded as the basis of retention and promotion, and this has tended to dispel the feeling of uncertainty and insecurity in relation to the tenure of office.

The Commissioner makes the following recommendations :

1. The amendment of section 4702 Revised Statutes, by adding a proviso, that when a widow remarries the children entitled to pension should be paid from the date of last payment to their mother.

Under the law as it now stands the children are entitled from the date of remarriage, so that through concealment of the fact subsequent payments may be made, which, although used for the support of the children, cannot be deducted from the amount found due them under the present law.

2. Repeal of section 4717 Revised Statutes, which bars the admission of claims not prosecuted to successful issue within five years from the date of filing, without record evidence from the War or Navy Department of the injury or disease which resulted in the disability or death of the person on whose account the claim is made.

It is claimed that this section works great hardship to many claimants, in whose cases the records are alleged to be incomplete or not in accordance with the facts.

3. The amendment of section 4698 Revised Statutes, which prescribes that no increase of an invalid pension, except in cases of "specific disabilities," shall commence prior to the date of the medical examination upon which the claim is adjusted.

The application of this is attended by considerable confusion and often by injustice. It prevents an increase, in many cases covering a period wherein the disability was clearly in excess of the pension paid, or a low rate was allowed on the mistaken opinion of an examining surgeon or a misapprehension of the case by the Commissioner. The statute should be so amended as to extend to this class of claims the exception made in specific disability cases.

As the amendments commend themselves on the grounds of necessity and justice, I earnestly recommend them to the favorable consideration of Congress.

PATENTS.

The report of the Commissioner of Patents shows a gratifying increase of the business of the office for the year ending June 30, 1878.

The number of original applications received for patents was 19,657; for design patents, 722; for reissue of patents, 627; for registration of trade-marks, 1,536; for registration of labels, 727; caveats filed, 2,737.

and referred to the Auditor. From this report and other unofficial sources the following facts and figures are compiled: Miles subsidized, 860.66; miles operated, 2,074; number of locomotives, 227; passenger-cars, 235; baggage, mail, and express cars, 49; freight and other cars, 4,913; stock subscribed, $62,608,800; par value of shares, $100; stock issued, $54,275,500; subsidy bonds, $27,855,680; funded debt, $55,045,00; floating debt, $11,534,206.07, not including accrued interest on the subsidy bonds amounting to $15,225,431.38; total debt, $109,660,317.45; total stock and debt, $163,935,817.45. Cost of road equipment and real estate, $147,000,000; cash, material, sinking-fund accounts, $7,827,987.33. For the year ending June 30, 1878, passenger earnings were $5,367,663.20; freight earnings, $10,160,055.11; no data given or obtainable as to miscellaneous earnings; total earnings, as far as reported, $15,527,718.31; operating expenses, $9,988,386.67; net earnings, $5,539,324.64; interest paid (estimated), $3,700,000; dividends paid, $4,342,040; lands unsold, 11,300,000 acres. As there appeared a great discrepancy between the sworn statement of the president of the company as to net earnings given above, and one made up from the figures given in the printed report of the officers of the company to the stockholders, an explanation has been called for by the Auditor. Correspondence in regard to this discrepancy is given in the appendix to the Auditor's report. The facts that the floating debt of this company seems to be increasing over what it ought to be; that for the calendar year 1877 this increase amounted to $5,310,169.37, and that the directory nevertheless saw fit to pay out over $4,000,000 in dividends, while the annual interest charge had increased over $300,000, are reported by the Auditor.

The Kansas Pacific Railway Company have rendered and are rendering reports in conformity with law. On November 3, 1876, Carlos S. Greeley and Henry Villard were appointed receivers of this company and operated the road until removed by the United States circuit court in October, 1878. The Auditor reports the business of this road as rapidly improving; and the following facts and figures are gathered from his report: Miles subsidized, 638.34; miles operated, 672.06; number of locomotives, 89; number of passenger-cars, 51; baggage, mail, and express cars, 17; freight and other cars, 1,323; stock subscribed, $9,992,500; stock issued, $9,689,950; subsidy bonds, $6,303,000; funded debt, $22,180,600; floating debt, $4,755,010.22, not including $1,915,356.94 accrued interest on subsidy bonds; total debt, $35,153,967.16; total stock and debt, $44,843,917.16; cost of road, $34,359,540.66. For the year ending June 30, 1878, passenger earnings were $698,710.45; freight earnings, $2,348,388.86; miscellaneous earnings, $252,938.50; total earnings, $3,300,037.81; operating expenses, $2,125,832.80; net earnings, $1,174,205.01; interest paid, $613,316.32; lands unsold, 4,803,933 acres.

The Denver Pacific Railway and Telegraph Company and the receiv

ers who have operated this road since April 2, 1878, have rendered the reports required from them. This company has suffered a considerable decrease in its gross earnings, in consequence of the opening of the Colorado Central, a branch of the Union Pacific Railroad. The following facts are reported: Miles subsidized, 105.89; miles operated, 105.89; number of locomotives, 6; passenger-cars, 4; baggage, mail, and express cars, 4; freight and other cars, 32; stock subscribed, $4,000,000; stock issued, $4,000,000; funded debt, $2,350,000; floating debt, $189,382.65; total debt, $2,539,382.65; total stock and debt, $6,539,382.65; cost of road, $6,495,350. For the year ending December 31, 1877, passenger earnings were $106,633.32; freight earnings, $161,950.38; miscellaneous earnings, $33,262.61; total earnings, $244,727.97; operating expenses, $141,093.74; net earnings, $103,634.23; interest paid, $111,167.87; lands unsold, 950,000 acres. Complete reports as to operations and affairs for the fiscal year ending June 30, 1878, were not received in time for this report.

The Central Branch Union Pacific Railroad Company has signified its intention to render reports. The following is from unofficial sources: Miles subsidized, 100; miles operated, 100; number of locomotives, 6; passenger-cars, 6; baggage, mail, and express cars, 3; freight and other cars, 127; stock subscribed, $1,000,000; par value of shares, $100; stock issued, $980,600; subsidy bonds, $1,600,000; funded debt, $1,600,000; floating debt, including $1,000,000 accrued interest on subsidy bonds, is $1,567,800; total debt, $4,767,800; total stock and debt, $5,748,400; cost of road, $2,548,707.36, to which should be added the discount on bonds and stock issued. For the year ending June 30, 1877, passenger earnings were $40,409.87; freight earnings, $130,819.27; miscellaneous earnings, $25,815.12; total earnings, $197,044.26; operating expenses, $153,205.88; net earnings, $43,837.38; interest paid, $45,344.73; lands unsold, 116,165 acres. These figures differ somewhat from those given in the last annual report of the department. Business operations for year ending June 30, 1878, were not reported in time to be embodied in the Auditor's annual report.

The Sioux City and Pacific Railroad Company has fully and promptly complied with every requirement of the law. The statement as to this road shows: Number of miles subsidized, 101.77; miles operated, 106.82; number of locomotives, 13; passenger-cars, 9; baggage, mail, and express cars, 6; freight and other cars, 218; stock subscribed, $4,478,500 ; par value of shares, $100; preferred stock issued, $169,000, drawing 7 per cent. interest per annum, secured by mortgage on the Missouri Valley connection; other stock issued, $1,899,400; subsidy bonds, $1,628,320; funded debt, $1,628,000; floating debt, $30,000, not including over $900,000 accrued interest on subsidy bonds; total debt, $4,186,720; total stock and debt, $6,255,120; cost of road, $5,337,627.41. June 30, 1878, passenger earnings were $83,600.83; freight earnings, $197,309.18; miscellaneous earnings, $89,755.35; total earnings, $370,

665.36; operating expenses, $330,475.22; net earnings, $40,190.14; interest paid, $111,654.50.

The Texas and Pacific Railway Company rendered its customary report to the department on October 5, 1878, which was referred to the Auditor. This officer called for explanations as to the report, so as to bring the information therein contained within the requirements of the act of 1871, and repeated his requests for reports under the act of June 19, 1878. These explanations, it is understood, will be furnished by the company, but it has so far declined to report under the act of June 19, 1878. From the report and other unofficial sources the following is compiled for the year ending June 30, 1878: Miles subsidized, 443.86; miles operated, 443.86; number of locomotives, 49; passenger-cars, 32; baggage, mail, and express cars, 11; freight and other cars, 986; par value of shares, $100; stock issued, $7,018,500; funded debt, $18,488,000; floating debt, $1,255,113.60; total debt, $19,743,113.60; total stock and debt, $26,761,613.60; cost of road, $26,540,239.61; passenger earnings, $594,030.84; freight earnings, $1,644,753.03; miscellaneous earnings, $77,787.88; total earnings, $2,316,571.75; operating expenses, $1,448,329.66; net earnings, $868,242.09; interest paid, $659,461.89; granted lands unsold, 18,000,000 acres.

The Southern Pacific Railroad Company has referred the law and the requirements made under it by the Auditor to its law officers and has not made any report. The following facts and figures have been compiled from unofficial sources for the year ending June 30, 1877: Miles subsidized, 711.95; miles operated, 711.95; number of locomotives, 43; passenger-cars, 69; baggage, mail, and express cars, 10; freight and other cars, 1,024; stock subscribed, $38,122,000; par value of shares, $100; stock issued, $36,763,900; funded debt, $29,300,000; floating debt, $994,861.03; total debt, $30,294,861.03; total stock and debt, $67,058,761.03; cost of road, $66,495,837.04; passenger earnings, $598,529.49; freight earnings, $654,303.78; miscellaneous earnings, $2,300,171.29; total earnings, $3,553,001.56; operating expenses, $1,724,174.41; net earnings, $1,828,830.15; interest paid, $1,817,449.50; lands unsold, 12,061,206 acres.

The Northern Pacific Railroad Company has made full and acceptable reports. The following facts are shown: For the year ending June 30, 1878, miles subsidized estimated at 2,000; miles operated, 555; number of locomotives, 48; passenger-cars, 22; baggage, mail, and express cars, 24; freight and other cars, 1,196; stock authorized, $100,000,000; par value of shares, $100; stock issued, $68,438,543.11; floating debt, $320,125.50; total stock and debt, $68,758,668.61; cost of road, $20,872,051.58; passenger earnings, $318,745.82; freight earnings, $745,517.28; miscellaneous earnings, $80,502.61; total earnings, $1,144,765.71; operating expenses, $608,788.99; net earnings, $535,976.72; lands unsold, 45,000,000

acres.

The Saint Louis and San Francisco Railway Company of Missouri,

purchaser of the Missouri portion of the Atlantic and Pacific Railroad, and saccessor of that company, has complied with the law and rendered reports. The following is compiled therefrom for the year ending December 31, 1877: Miles subsidized, 292.50; miles operated, 363.50; number of locomotives, 28; passenger-cars, 10; baggage, mail, and express cars, 8; freight and other cars, 738; par value of shares, $100; stock issued, $21,289,608; funded debt, $5,278,982.26; floating debt, $49,612; total debt, $5,328.594.26; total stock and debt, $26,618,202.26; cost of road, $26,734,718.15; passenger earnings, $230,242.57; freight earnings, $1,023,909.89; miscellaneous earnings, $69,791.30; total earnings, $1,323,943.76; operating expenses, $584,816.91; net earnings, $739,126.85; interest paid, $734,740.91, annual interest payment being $549,340 in gold; lands unsold, 915,654 acres.

The Burlington and Missouri River Railroad Company in Nebraska at first complied with the requirements of the law, but, acting under legal advice, the president of this company referred further requests to the directors for a final decision.

The Oregon and California Railroad Company has complied with the law and rendered reports accordingly. The following facts are shown for the year ending June 30, 1878: Miles subsidized, estimated at 300; miles operated, 200; number of locomotives, 14; passenger cars, 11; baggage, mail, and express cars, 3; freight and other ears, 227; par value of shares, $100; stock issued, $20,000,000; funded debt, $10,950,000; floating debt, $800,000; total debt, $11,750,000; total stock and debt, $31,750,000; cost of road, $5,422,958.32; passenger earnings, $227,524.15; freight earnings, $402,286.07; miscellaneous earnings, $37,381.18; total earnings, $667,191.40; operating expenses, $396,000; net earnings, $271,191.40; interest paid, $158,775; lands unsold, 3,000,000 acres.

The Oregon Central Railroad Company has rendered reports to the Auditor. For the year ending June 30, 1878, the following is reported: Miles subsidized, 47.50; miles operated, 47.50; locomotives, 4; passenger cars, 2; baggage, mail, and express cars, 2; freight and other cars, 62; stock subscribed, $5,000,000; par value of shares, $100; stock issued, $4,980,050; funded debt, first-mortgage bonds, $4,695,000, issued and delivered to trustees as security for $1,000,000 borrowed money; floating debt, $1,182,507.58, including $1,000,000 secured by first-mortgage bonds; total debt, $5,877,507.58; total stock and debt, $10,857,557.58; cost of road, $1,201,927.97; passenger earnings, $25,337.05; freight earnings, $44,532.27; miscellaneous earnings, $2,397.07; total earnings, $72.266.39; operating expenses estimated at $72,266.39; interest paid, $98,000; lands unsold, 1,200,000 acres.

Of the railroad companies which have received grants of land from the United States through State or Territorial governments, the following have not rendered reports by reason of interruption of business during the past four months in consequence of the prevalence of yellow fever in the Southwestern States, viz: The Memphis and Little Rock