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After reassembling at Hot Springs and perfecting arrangements as far as possible for preserving the peace and protecting the interests of all parties, it was thought best to remove the records of our proceedings, testimony, books, and other papers to Washington; this was done for greater safety and for the purpose of facilitating the work, intrusted to us. This procedure had the approval of the department.

An office was assigned to the commission by the Interior Department, since which time the examination of testimony has continued without interruption. We have made the examination in all but a very small number of cases, and have prepared an abstract of facts proven in each case, so that the final adjudication will be greatly facilitated. We expect to complete the examination of the testimony in all the cases by the 1st of December next. This labor involved the reading and digesting of all testimony, documentary and otherwise, in eight hundred and ninety-seven (897) cases. Stenographer's notes, not before written out, amounting to about 3,000 pages of foolscap, have been transcribed and properly filed with the claims.

Careful consideration and much study have been given the subject of laying out, widening, and straightening streets, a matter of very great importance.

The office at Hot Springs has been open continuously and every interest of the United States carefully guarded.

The work contemplated by the law and remaining unfinished is as follows, viz:

First. Straightening and widening old streets; laying out new streets, avenues, alleys, &c., in the entire town of Hot Springs. This work requires careful study and a high order of engineering, as the ground is of peculiar nature.

Second. The hearing of arguments in contested claims, and the final adjudication in 897 cases, and the preparation of findings in each case. About one-half the cases are simple and undisputed, the main question being on the facts whether the claimant is entitled to the whole or a part of the land he claimed. The other cases are more or less complicated and conflicting, two or more persons claiming the same lot, involving disputed questions of fact and law.

Third. The appraisal of each lot awarded.

Fourth. The resurvey of each lot, after adjudication of the claims, in 'order to define the lines and ascertain the exact amount of ground to be certified to each claimant as required by the law.

Fifth. The appraisal of improvements upon each lot awarded. The claimant does not pay for the improvements but the law requires their appraisal.

Sixth. The division of the land not claimed or awarded, into lots, squares, or blocks, and appraisal of the same, preparatory to the sale to the highest bidder, but not less than the appraisal.

Seventh. Preparing and issuing certificates to each claimant, who is adjudged the right to purchase, setting forth the amount of land claimant is entitled to purchase, the value thereof, character and value of improvements; these certificates being the only evidence of claimant for foundation of patent.

Eighth. Condemning all buildings upon the permanent reservation and in the line of streets, appraisal of the same, and preparing and issuing certificates therefor.

Ninth. Preparation of map embodying the results of the whole work to be filed with the Secretary of the Interior, accompanied by the schedule provided for by the law.

Some time will be required in notifying parties who may desire to argue contested claims to appear, and in arranging the cases for hearing. There is a large number of contested claims (300 or 400), but we cannot say in how many the contesting claimants will desire to make oral arguments or present written or printed briefs, but we have reason to believe that a large number of oral or written arguments will be submitted. These cases involve very important interests, and are entitled to a full hearing upon all questions.

The prosperity and well-being of a numerous population and the very great pecuniary interests of the United States demand that action should at once be taken looking to an immediate settlement of all questions involved. At least ten thousand visitors from nearly every State in the Union and from foreign countries are annually attracted to the city of Hot Springs in search of health, and this number will be largely increased in the future, when the titles to the land are settled and needed improvements are made.

We see no reason to change the opinion already given in a former report relative to appropriations required to complete the work. The amount agreed upon by Congress at its last session and the unexpended balance of the last appropriation will be necessary to carry out the intention of the law.

Hon. CARL SCHURZ,

AARON H. CRAGIN.
JOHN COBURN.
M. L. STEARNS.

Secretary of the Interior, Washington, D. C.

REPORT

OF THE

SUPERINTENDENT OF THE HOT SPRINGS RESERVATION.

HOT SPRINGS, ARK., November 15, 1878.

SIR: I have the honor to make the following report, embracing the time from October 1, 1877, to June 1, 1878. I entered upon my duties as superintendent of Hot Springs Reservation early in October, 1877. My first duty was the removal of some three or four hundred people encamped on the western slope of the Hot Springs Mountain, in close proximity to the hot water springs. These people embraced almost every nationality, both sexes, white and colored. They were most of them living in slianties or tents, but some of them were encamped under the trees with no other shelter. Most of them were afflicted with disease, and many of them worthless and desperate characters; they were destroying the timber and shrubbery and polluting the springs. On the 20th day of October I gave them notice to move off the reservation within thirty days; many of them removed at once, but quite a number were great invalids, and having no means, were unable to move, being supported by charity. I had no funds in my hands for the purpose of moving and providing for them. I was therefore compelled to appeal to the guests and citizens for means; to this appeal they responded most liberally, and supplied me with money sufficient to erect comfortable barracks on the south side of the mountain, make two commodious and comfortable bathing pools, one for men and one for women, and convey the hot water in iron pipes to them. The barracks or hospital accommodates about sixty invalids on the average. This destitute class are better provided for than ever before.

I had great difficulty in arriving at a satisfactory and equitable mode of affixing the water rents, but finally adopted, with your approbation, the rate of five dollars per tub per month, which seemed satisfactory to the wants of bath-houses, and which price, in my judgment, should hereafter be maintained.

Early in March last we had a terrible conflagration, which burned almost the entire business portion of the town. The buildings on the east side of Valley street from the southwest corner of the reservation proper, including three bath-houses, up to near the Big Iron Bath House, were entirely consumed. I have had great trouble in preventing parties from rebuilding on this portion of the reservation, but have thus far succeeded.

The corporation have taken the responsibility of erecting on the southwest corner of the reservation proper a city hall and fire-engine house, which is now being used for the mayor's office, and for city, county, and superior courts. The mayor assures me that it will be promptly removed whenever required by the Secretary; the corporation having no other site that was convenient for the purpose.

Early in June, in consequence of the spread of yellow fever throughout the Southern States, I deemed it important toward preventing sick

ness here, that that portion of Hot Springs Creek running through the reservation should be thoroughly cleared out, so as to give the water a clear and swift passage. This I did with your approbation, at a cost of seventy-five dollars. I also paid F. C. Stearns, by your direction, eighty dollars for care of Commission papers; also H. A. Whittington, for rent of room for same, thirty-three dollars. Thirty-seven dollars carried to the July account. The balance of water rent collected up to June 30, 1878, is deposited in the Merchants' National Bank, Little Rock, Ark., amounting to $5,035, making a total collection of water rent $5,260. Very respectfully,

Hon. CARL SCHURZ,

B. F. KELLEY,
Superintendent.

Secretary of the Interior.

REPORT

OF THE

GOVERNMENT DIRECTORS OF THE UNION PACIFIC

RAILROAD.

BOSTON, December 7, 1878.

SIR With the exception of a single one of their number (Mr. Chadwick, of Connecticut, who was originally made a member of the board in March, 1877), all of the present government directors of the Union Pacific Railroad were appointed within the present year. They none of them had any previous knowledge of the affairs of the corporation, or were more than generally informed as to its relations with the government. Under these circumstances it was fortunate that very shortly after their appointment was decided upon, two acts of Congress were passed which greatly simplified their work. By one of these acts the annual payments, allowances, &c., to be made to the government by the Union Pacific were fixed; while by the other a new bureau was established, in connection with the Department of the Interior, for auditing the accounts of that company, among others. These two measures of legislation effectually relieved the present government directors from further considering many subjects which had engaged the attention of their predecessors. For the immediate time being, and at least pending the action of the courts in cases arising out of the operation of the acts referred to, and which are now, it is understood, ready for decision, the financial relations of the government and the Union Pacific must be considered as definitely settled. This subject, therefore, calls for no further discussion. As respects also the condition of the company's finances, its resources and the disposltion made of them, the government has its own auditor, and is in immediate possession of all the facts and statistics which it would be in the power of government directors to furnish. Neither have the present directors thought it incumbent upon them to further investigate questions of the past connected with the construction of the Union Pacific road or its earlier operations. They have, on the contrary, deemed that they would best subserve the purpose of their appointment by strictly confining their attention to questions of the present, giving the department such information as they might be able to procure relating to the existing condition of the property, and the policy now pursued by the direction in the management of the company's affairs.

The usual yearly inspection of the road was made in September and October last. All of the members of the board took part in it, with the exception of Mr. Chadwick, who was prevented from so doing by business engagements. He therefore does not join in that portion of the report derived from personal observation of the property or its management on the spot. Both locally upon the line and in the general offices of the corporation at New York and Boston every facility has at all times

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