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It will be seen that the clerical force of the pension division of this office must be as well acquainted with the laws and instructions relative te pensions as the clerks by whom the claims are adjudicated, in order to ascertain if the rates and dates of commencement named in the certificates issued come within the provisions of existing laws.

The consolidation of agencies from July 1, 1877, and the number of pensioners added to the rolls under act of March 9, 1878, and the " arrears" acts of January 25 and March 3, 1879, together with the constant increase in the number of regular pensioners, have caused the accumulation of work now on hand.

June 30, 1877, the number of pensioners on the rolls was 223,998. The number on the rolls June 30, 1881, was 268,830, an increase in original cases of 44,832 (28,740 during the past year), and, as each pensioner is paid quarterly, the number of vouchers to be examined and payments entered during a year is 1,075,320.

Besides the original cases allowed, the number of restoration, reissue, and increase cases is very large, and these require more labor in recording and calculating than the original cases.

The present force employed in the pension division of this office ag. gregates 37 clerks and 2 copyists, which force is inadequate to the amount of work to be performed.

The following statement shows the amount of unsettled pension accounts on hand in this office June 30, 1877, together with the amount received and audited from that date to March 1, 1882, showing an accumulation in that time of $43,713,971.75.

Statement showing amounts of accounts on hand June 30, 1877, and amounts received and

audited from that date to March 1, 1882.

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* The decrease in the number of vouchers examined and payments entered in the regular accounts was owing to the examination of vouchors and entry of payments under

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My present force has been pushed as hard as a proper regard for accuracy would warrant, and yet it will be seen that we have not been able to keep up with the constantly increasing work.

The hope that when large payments for “arrears” were settled we could reduce the large aggregate of unsettled accounts has led me to defer asking for additional force.

If, however, our work is to be largely and rapidly increased by the settlement of pending claims within three years, I estimate that to meet it our necessities will require an increase of force as follows: Five clerks of class 3, seven clerks of class 2, and eight clerks of class 1. Any less increase would leave us unable to transact the business which would be thrown upon the office with that promptness and accuracy which the public interests require.

In this connection I desire to call attention to the great disadvantage this office has long labored under in the matter of compensation. The following tabular statement shows the number of clerks of each grade in the offices of the Auditors of the Treasury Department as at present constituted, and the proportionate number of the higher grades:

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This statement may be verified by reference to the legislative, executive, and judicial appropriation bill passed last year. An examination will show that the Third Auditor's Office, in the number of clerks of class 4 and class 3, is not only far below any other office, but very far below the general average. Any one familiar with the business transacted in the several offices must admit that the work of this office calls for clerks of, at least, average ability and efficiency.

The discrimination that has been made against this office renders it hard to keep good men in the office. My best men are constantly tempted to seek transfer to some other office, where some promotion is possible, and too often I am compelled to let them go.

Under these circumstances, I ask to have my office graded up to the average only. I ask for a readjustment of grades to make my office equal to others, that I may give some most worthy clerks long-deserved promotion, and retain them where they can “do the most good.”

To this end, I ask that the 122 clerks now given me in classes one, two, three, and four, may, in any event, be classed as follows: 9 clerks of class four, 30 clerks of class three, 43 clerks of class two, 40 clerks of class one, all lower grades of employés to remain as now.

It seems to me that the justice of this request must be acknowledged. Either the other offices are too high or we are too low. Approximate equality, at least, should be secured. I do not think the others are too high.

If the measures looking to the early settlement of pension claims be adopted as proposed, then I submit my force should be provided for as follows: 9 clerks of class four, 35 clerks of class three, 50 clerks of class two, 48 clerks of class 1, all lower grades to remain as now.

If the recommendation in my letter of October 3, 1881, relative to salaries of two chiefs of division, be followed, then the number of fourthclass clerks may be properly made 7. Very respectfully,


Third Auditor. Hon. CHAS. J. FOLGER,

Secretary of the Treasury.

1st Session. 7

No. 163






A communication from the Secretary of War, relative to the improvement

of the water-power pool at Rock Island Arsenal.

APRIL 11, 1882. –Referred to the Committee on Appropriations and ordered to be


To the Senate and House of Representatives :

I transmit herewith, for the consideration of Congress, a letter from the Secretary of War, dated the 6th instant, in which he recommends a reappropriation of the unexpended balances of two appropriations of $50,000 each, made in 1880 and in 1881, "for continuing the improvement of the water-power pool” at the Rock Island Arsenal, and that the additional sum of $30,000 be granted for the same purpose, also the additional sum of $70,000 “ for deepening the canal and for opening six water-ways in connection with the water-power.”



Washington City, April 6, 1882. SIR: I have the honor to submit a communication from the Chief of Ordnance, in which he recommends that Congress be asked to reappropriate the unexpended balance of two appropriations of $50,000 each, made in 1880 and in 1881, "for continuing the improvement of the water-power pool" at the Rock Island Arsenal, and the additional sum of $30,000 for the same purpose, and the additional sum of $70,000 " for deepening the canal, and for opening six water-ways in connection with the water-power."

It will appear from the inclosed papers that the government is bound to “ develop and maintain” the water-power, and that the extent of the development which the government is under obligation to make has long been the subject of controversy with the Moline Water Power Company, and that an opportunity is now offered to end that controversy

in a manner which is believed by the Chief of Ordnance to be for the best interests of the United States.

It is proposed that this object be acccomplished by providing in the act making the appropriation, that no part of the money appropriated shall be expended until detailed plans and specifications for actual work to be done, the estimated cost of which shall be within the appropriation, shall be prepared and approved by the Moline Water Power Company, with an agreement from said company that the expenditure in the performance of the work so specified of the sum so appropriated, or if the work can be actually completed for a less sum, then of so much thereof as may be expended for such completion, will be accepted by the Moline Water Power Company in full discharge of the obligation of the United States to develop the water-power.

It further appears that the work is of such a character that it can only be done by taking advantage of a favorable stage of water in the Mississippi River, and that it can be done most economically by continuous work, for which reason it is advisable that the total appropriation be made at one time, and that it be made without limit as to time of expenditure.

The total amount asked for, in addition to there appropriation of the unexpended balance, is $100,000. I concur in the recommendation of the Chief of Ordnance, that Congress be requested to make this appropriation, with the restrictions mentioned. I have the honor to be, very respectfully, your obedient servant,


Secretary of War. To the PRESIDENT.


Washington, April 4, 1882. The honorable the SECRETARY OF WAR:

Sir: I have the honor to submit a communication from the president of the Moline Water-Power Company of April 3, 1882, asking for certain work to be done by the United States for the improvement of the water-power, the deepening of the tail-race canal, and the making of six openings in the dike for water-ways for its use.

Special attention is invited to the within report of the commanding officer of the Rock Island Arsenal, which meets my entire approval.

The contract of April 8, 1869, entered into between the Secretary of War and the Moline Water-Power Company, was for the cutting of a canal through the company's grounds in continuation of the tail-race. That canal should be deep enongh to serve its purpose when the company shall have deepened the tail-race above. It is the company's desire to so deepen it, and to meet its requirements the canal must be deepened about three feet in order that the company may enjoy the full benefit of the waterpower developed.

The report of February 4, 1876,* herewith inclosed, embraced an estimate of $157,350, in order to give to the Moline Water. Power Company the full benefit of the develop ment already made by causing a sufficient flow of water into the pool to supply the necessary water-power; the government being bound by its agreement to do this work, in the interest of the two parties interested, for economy, and particularly for the protection of valuable interests to the United States. This was approved by the Secretary of War. Of this amount only $100,000 has been appropriated. Further esamination and experience leads to the belief that an additional $:30,000 to the money already appropriated will be sufficient.

Tbe money estimated for is as follows: Reappropriating the unexpended balance of the $50,000 of 1881 and the $50,000 of 1882, and the appropriation of $30,000 for the improvement of the water-power. For deepening the canal ..... Opening six water ways


15, 000

* See Senate Ex. Doc. No. 13, Forty-sixth Congress, first session.

I recommend these appropriations on condition that before any of the money is expended the Moline Water-Power Company pledge itself to the deepening of its tailrace by the time the deepening of the canal by the United States is completed, and give a full and final discharge of all its claims, of every kind and description, which it may have against the United States on account of the proper and complete development of the water-power, leaving to the United States the sole obligation to maintain the water-power as so developed. · Very respectfully, your obedient servant,


Brig. Gen., Chief of Ordnance. P.S. As the ditficulties to be encountered in performing this work from high water in the river, ice, &c., are of the same kind and quite as great as those encountered in river and barbor improvements, therefore for the same reasons that have caused Congress to make river and harbor appropriations permanent, viz, that the work may be done with the highest economy, I urgently recommend that this appropriation be made permanent.

I further recommend as absolutely necessary to the prosecution of all this work, and to take advantage of the proper stage of water, &c., that the entire appropriation asked for above ($100,000 and time reappropriations) be made at the present session.

S. V. B.


Washington, April 3, 1882. The CHIEF OF ORDNANCE,

U. S. Army, Washington, D. C.: Sır: In compliance with your instructions I have the honor to report as follows in regard to the claims made upon you in the last few days (verbally) by the Moline Water-Power Company:

1st. If the Water-Power Company elects to further dig outits tail-race, in my judgment there a contract obligation on the part of the United States to further deepen the water-power canal to a reasonable depth, say 3 feet deeper than its present depth, in order to meet the increased depth the Water-Power Company proposes to dig out in its tail-race. This obligation grows out of the contract of August, 1867, the first contract between the United States and the Water-Power Company; because, had the water-power been developed, as I believe was contemplated, when the United States commissioners at Rock Island made their report to Congress, and as the WaterPower Company had a right to expect it would be developed when its officers signed the contract, then the Water-Power Company could now elect to deepen their tail-race as they propose, and get therefrom all the benefit they now propose. In my opinion, the second contract, that of April, 1869, which requires the United States to make said canal—"of sufficient capacity for the purpose named "-ought to require the United States to give the Water-Power Company, as far as is reasonably practicable, as good advantages for improving their tail-race as they would have had under the first contract.

I therefore recommend that if the Water-Power Company deepens its tail-race that then the United States deepen the canal as requested, if an appropriation therefor can be obtained from Congress.

20. The Water-Power Company claims that the United States should give it six new water-ways, or openings for water wheels, to be placed in the stone dike near the canal. (To do this it would be necessary to remove a portion of the stone dike and substitute therefor a masonry stone wall in which the water-ways conld be built.)

I know of no contract obligation that could require the United States to do this work, and believe there is none. The government has already discharged completely all its obligations in regard to making water-ways for the Moline Company.

In making this claim, the Moline Company states that because the water-power has not been as good as was expected the company has lost the control of mill sites opposite its openings, heretofore provided by the United States, and that therefore the United States ought to provide new openings in other places to compensate. This would prove the advantage of rfew openings to the company, and might be asked for under a claim that the United States should do all it reasonably can for the relief of the Water-Power Company, but carries with it no contract obligation on the part of the United States. Therefore, in making the recommendation, as I do further on, that this work should be done, I recommend it for the purpose of satisfying all the claims and complaints of whatever kind of the Water-Power Company against the United States, and for the purpose of settling the whole water-power controversy.

The above covers, as I understand them, the claims made by the Moline WaterPower Company.

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