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The following bill for supplies was paid by the Union Pacific Railway Company, E. D., during its recent surveys, to the U. S. Quartermaster at Fort Bowie, Arizona, under General Grant's order permitting the Company to purchase forage and subsistence at Government posts, at cost price, with actual cost of transportation added.

It will be observed that, while the cost of the 200 lbs. pork and 84 lbs. salt was $47, that of the transportation of these articles from Fort Yuma was $133, nearly three times as much as the Yuma price, and equivalent to over five times the cost of transportation by rail at the present rates on this Railroad-not from Fort Yuma, but from San Francisco to Fort Bowie, and over ten times the cost from San Diego.

THE UNION PACIFIC RAILWAY COMPANY, EASTERN DIVISION,

TO THE UNITED STATES, DR.

Nov. 11, '67. To 200 lbs. pork, at 18c. per lb......... $36 00 To 84 lbs. salt, at 131c. per lb..

......

To transportation on 411 lbs. at 23c.
per lb. in coin

Total.........

11 34

133 29

$180 63

Received at Camp Bowie, A. Ty., this 11th day of Nov., 1867, of J. M. Blair, Q. M. E. C. U. P. R. R., E. D., the sum of one hundred and eighty dollars and sixty-three cents ($180.63) in full of the above account.

(Signed)

Approved:

EDWARD B. HUBBARD,

EDWARD B. HUBBARD,
2d Lt. 32d Inf., Comdg. Post.

2d Lt. 32d Inf. A. C. S.

The price paid by General Palmer's engineer parties, on the recent surveys of this Company, for corn, including transportation at the boundary line between Mexico and Arizona, was 10 cents per pound, and at Fort Whipple (adjoining Prescott, Arizona) for corn and barley 8 cents per pound in gold.

RECOMMENDATIONS OF MILITARY COMMANDERS.

General Grant, in his report as Secretary of War ad interim, remarks:

"During the last summer and summer before, I caused inspection to be made of the various routes of travel and supply through the territory between the Missouri river and the Pacific coast; the cost of maintaining troops in that section was so enormous, that I desired, if possible, to reduce it. This I have been enabled to do, to some extent, from the information obtained from these inspections; but, for the present, the military establishment between the lines designated must be maintained at a great cost per man. completion of the Railroads to the Pacific will materially reduce this cost, as well as the number of men to be kept there. The completion of those Roads will also go far towards a permanent settlement of our Indian difficulties.

The

HEADQUARTERS MILITARY DIVISION OF THE MISSOURI,
ST. LOUIS, MO., March 4, 1868.

General U. S. GRANT,

Washington, D. C.

GENERAL: Several gentlemen of this city personally known to both of us,interested in the Union Pacific Railway, Eastern Division, have frequently spoken to me, and have now addressed a letter, which I enclose herewith, in which they virtually ask our assistance in the efforts to extend their Roads westwardly to a point where they will reach timber and coal, and where their Roads will be of additional military advantage to us. You probably remember that by the first charter of the Pacific Road, it was designed for this branch to start from the State line near Kansas City, to follow the main valley of the Kansas River to the north of the Republican Fork, (Fort Riley,) and up that Fork to a point in its valley abreast of Fort Kearney, and thence to make a junction with the other branch of the Pacific Road in the valley of the Platte at the 100th meridian. Subsequently the route was changed with the consent of Congress, and the Directors were allowed to build their road up the Smokey Hill Fork, since which time it has in a measure ceased to be considered a feeder or branch of the Omaha Pacific Road, and has become a separate or independent Road altogether. By the terms of the original act or charter, this Company receives $16,000 per mile of Road finished, and when the location was changed from the Republican to the Smoky Hill, no increase of subsidy was made, so that this subsidy will cease to be paid when the extension amounts in distance to the length of the line originally provided for.

This Road is now finished three hundred and thirty-five miles out from Kansas City, and the Company calculate that their subsidy will enable them to reach Fort Wallace, which is fifty miles beyond their present terminus, Cayote. Without the aid of additional subsidy the road will, however, probably stop at For Wallace, which is in the midst of that wide tract of prai thing useful, excep pany design to buil

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but in the present financial condition of the country, they hardly expect Congress at this time to give them the same subsidy which has been secured by the main Omaha Road. Still, to them and to us, the termination at Fort Wallace will be very awkward, because the point is simply nowhere, being a mere naked spot in a limitless wilderness. It seems that the Company has secured iron and materials to build during this year a couple hundred of miles if they can only obtain from Congress a subsidy of $16,000 per mile, for, say two hundred and fifty miles beyond Fort Wallace.

At the Cheyenne Wells, forty miles west of Fort Wallace, the proposition now is to branch one road to go to Cedar Point, one hundred miles west towards Denver, where are reported to exist beds of coal and considerable pine and cedar wood; the other branch to go in the direction of New Mexico to Fort Lyon, seventy miles southwest of Cheyenne Wells. All I need say is, that the completion of this Road during the present year to Fort Lyon would be a most important event to the military interests of that frontier, and the completion of the other branch to coal and wood would also be most important to all the interests along the valley of the Smoky Hill, chiefly so to us, who have to guard that line and to provide for the wants of the necessary garrisons. It seems to me that we can with great propriety recommend to Congress, at its present session, to extend their subsidy to this Company at the present rate for two hundred and fifty miles more, the aggregate amount being $4,000,000 in bonds. This road is a military necessity, and will very much stimulate the settlement of that region of our public domain. I therefore simply transmit to you the letter in question, signed by John D. Perry, President, with the foregoing remarks, and the expression of my opinion that this Road is in most competent hands. I believe the Company to be both able and willing to faithfully execute any contract or obligation they may make with the Government.

I am, with great respect, your obedient servant,

W. T. SHERMAN,
Lieutenant General.

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