departments. Both the purposes and the ability and the energy of the company should, we think, be satisfactory to the Government. What the former management was, or what gave rise to the lack of confidence and friendliness toward it, it is not a part of our duty to report; but in the interest of that right understanding by the Government which is so important to the right handling of the large interest in the company, we think it is high time to draw the line at this mangement and at the present ownership of the property. The Union Pacific is now an investment property and is owned by between seven and eight thousand people, with but a comparatively small part of it in speculative hands; and its management is honest, economical, and able. These facts entitle it to be regarded and dealt with without prejudice or disfavor.

The interests of the road and of the Government respecting the future policy are identical. In other words, what is good for the one is good for the other; what is bad for the one is bad for the other. The property cannot stand still and hold its value, and if its value declines the value of the investment of the Government will decline. But it cannot progress as it should until its relations with the Government are put upon a wise, fixed basis. We are hopeful that all the indications point to the abandonment of the old attitude of mutual antagonism, and to a general belief that interests which have so long appeared conflicting are in reality harmonious. Respectfully submitted.

Hon. L. Q. C. LAMAR,

Secretary of the Interior.

6737 I-vol. 2—41

E. P. ALEXANDER.
F. R. COUDERT.

M. A. HANNA.

FRANKLIN MAC VEAGH.
J. W. SAVAGE.

REPORT

OF

THE COMMISSIONER OF PENSIONS.

To the Hon. THE SECRETARY OF THE INTERIOR:

SIR: I have the honor to submit herewith the annual statement showing the operations of this Bureau for the fiscal year ending June 30, 1886.

Table No. 1 shows as follows:

There were at the close of the year 365,783 pensioners, classified as follows: 265,854 Army invalids; 80,162 Army widows, minor children, and dependent relatives; 2,953 Navy invalids; 1,878 Navy widows, minor children, and dependent relatives; 1,539 survivors of the war of 1812, and 13,397 widows of those who served in that war, showing a diminution in survivors during the year of 1,406, and of widows of 3,815.

There were added to the rolls during the year the names of 40,857 new pensioners, and the names of 2,229 whose pensions had been previously dropped were restored to the rolls; making an aggregate of 43,086 pensioners added during the year.

During the same period the names of 22,089 pensioners were dropped from the rolls for various causes, leaving a net increase to the rolls of 20,658 names.

The average annual value of each pension at the close of the year is shown to be $122.23, a gain of average annual value over last year of $11.88. The aggregate annual value of all pensions is $44,708,027.44; an increase of like value for the year of $6,617,041.51.

The amount paid for pensions during the year was $63,797,831.61; a decrease in amount over the previous year of $1,135,456.51; a difference due to the difference in amounts of "arrearages" paid.

The difference between the amount paid and the annual values is due to first payments, including "accrued" and "arrears."

The amount paid to 37,887 new pensioners during the year upon first payment was $22,137,054.16; and there remained in the hands of the several pension agents 5,526 of this class unpaid at the close of business on the 30th day of June, on which there was due $2,879,933.42.

Table No. 2 shows the various causes for which the names of 22,089 pensioners were dropped from the rolls, classifying what is termed the "widows' roll," so as to show the number of widows with, and those without, minor children; the number of minor children who were pensioners in their own right, and the number of dependent mothers and fathers. It also shows the whole number of pensioners on the roll with a like subdivision of the widows' class.

Table No. 3 exhibits the amount of appropriations and balances available for payment of pensions for 1885-286.

Table No. 4 exhibits the amount paid out on account of pensions by each agent, and the causes of disbursement therefor, as shown by their accounts current. It also shows a disbursement during the year of $39,185.96 for payment of" arrears of pensions" in cases where the original pension was granted prior to Jan. 25, 1879, and the date of commencement of pension was subsequent to discharge or death. The act of June 25, 1879, provided for arrears of this class, and the disbursements have been kept separate from those of regular pensions. Of the funds to pay this class there remains a balance of $454,065.67, which is not, as in the case of other appropriations, covered into the Treasury at the close of the year.

Table No. 5 exhibits the amount of rent paid by each pension agent during the fiscal year ending June 30, 1886.

Table No. 6 shows the number of pensioners on the roll at each agency by the several classes, and compares the items in the aggregate with those of the previous years. It shows also the increase at

each agency for the year.

Table No. 7 shows the number of original pension claims of each class filed year by year since 1861; the number allowed, and the number of pensioners on the roll at the close of each year.

In this statement it appears that 591,102 claims have been filed during that period on account of disability, and 348,799 claims have been filed on account of death alleged to be due to causes originating in the service, claims for this latter class having been filed by widows, minor children, and dependent relatives.

There have been allowed of the invalid claims 332,141; of the widows and dependent relatives' claims, 229,435; a total of 561,576.

Since 1871, 78,834 claims for pension on account of service during the war of 1812 (provided for by acts of 1871 and 1878) have been filed. Of this number 34,697 have been filed by the surviving soldiers and sailors, and 44,137 have been filed by the widows of those who served in that war, making a total number of claims under said acts for such service of 78,834. Only 24 original survivors' claims have been filed under this law during the past fiscal year, and only 304 on account of widows for the same period.

It thus appears that in the aggregate 1,018,735 pension claims have been filed since 1861, and in the same period 621,754 claims have been allowed of all classes. The number of pensioners on the roll at the close of each year is stated. The amount paid for pensions since 1861 is $808,624,811.57.

Table No. 8 shows the number of each class of claims on the files of the office at the commencement of the year; the number filed during the year, and the number admitted; the number rejected during the same period, and the number of each class which were pending and on the rejected files at the close of the year. There is also shown in this table the number of bounty land claims received, allowed, rejected, and remaining on the files.

Table No. 9, which follows, is a comparative statement of pension claims of all classes, settled by allowance and rejection, for the years 1881, 1882, 1883, 1884, 1885, and 1886.

CERTIFICATES.

Table No. 10 exhibits the issue of certificates from this office during the fiscal year beginning July 1, 1885, and closing June 30, 1886, and shows, including the issue of 79,989 widows and dependent relatives increase certificates, a grand total for the year of 161,416 certificates.

SPECIAL EXAMINATION DIVISION.

Table No. 11 shows in brief the operations of the Special Examination Division of the office during the year. It sets forth the number of claims acted upon by said division, the amount of savings accredited to this service, and the expenditure on account thereof, except salaries. It will be noticed that while the average number of examiners has been diminished, the aggregate of work done is handsomely increased. The cost has been also considerably diminished. The amount of expenses, exclusive of salaries, is about $48,000 less than the preceding year.

There were examined and disposed of by the division during the year by submission to the Board of Review, &c., 18,786 cases.

CRIMINAL PROSECUTION.

Two hundred and seventy-eight criminal prosecutions have been certified to the Department of Justice. There have been 127 convictions during the year for offenses against the pension laws. Two hundred and eighty-four cases were on the 30th of June awaiting action in the Federal courts. The prosecutions are for offenses against almost all the criminal clauses of the pension law, relating to defrauding of pensioners, false impersonations of dead pensioners, embezzlements in office, &c.

The result of the work in this division has been gratifying. It has saved millions of money to the public Treasury, and the new system of organization of the division, it is believed, has reduced its expenses to the minimum and increased its efficiency to the maximum point.

PENSION AGENCIES.

At the date of his last annual report the Commissioner called attention to the steps then being taken for the revision and correction of the pension-rolls of the various agencies. The result of the year's work is shown in the number of those whose names have been dropped from the rolls. The causes for which the droppings have been ordered have been tabulated.

In so great a field of operations as was covered by this investigation, embracing the entire territory of the United States, it was not possible that mistakes should not have occasionally occurred, but where they did occur and the attention of the office is called to their existence, remedies are extended as promptly as possible.

Table No. 12 shows the different monthly rates of pension paid to Army and Navy invalids, together with the number of pensioners of these classes and of each of them. It will be seen that there are 131 different rates of pension paid.

Table No. 13 gives the location, and geographical limits of each pension agency, the name of each agent, and the term of his service during the fiscal year, and the balance of the funds remaining in the hands of each agent at the close of the year.

Table No. 14 exhibits the amount paid for pensions to the survivors of the war of 1812, and to the widows of those who served in that war since 1871.

Table No. 15 shows the number of Army invalid claims allowed each year since 1861, classified and arranged so that in each year's allowance is shown in what years the claims were filed for all the preceding, as well as the one in which the allowance was made. It also shows the percentage of claims allowed out of those filed each year.