Of the claims of the second class, the sum of $18,988 84 was appropriated in 1860 by Congress for payment of expense incurred on account of protecting our frontier after the Inkpadutah Massacre, coupled, however, with such restrictions as to make it hitherto unavailable. I accordingly withdrew this claim from the Third Auditor's Office, where it had lain on file since 1860, and with the assistance of Gen. G. M. Dodge, was enabled to take it before the Secretary of War, ad interim, who promptly ordered a re-examination of the same, the result of which was that the action of the Stite authorities in the premises were approved, and the claim was again referred to the Third Auditor, with instructions to take it up, and settle the same in accordance with the provisions of the act authorizing its payment and the established usages of the Department. It is but reasonable to suppose that a fair share, if not the entire claim will eventually be secured to the State. Coming also under the head of claims of the second class, are the payments made by the State on account of the Regiments, Cols. Morledge and Edwards, the northern and southern border brigades and other miscellaneous companies called into the military service of the State during the existence of the rebellion.

These expenditures not coming within the meaning of any of the acts of Congress above quoted, it became necessary to bring the subject before that body. Accordingly, in the summer of 1866, a joint resolution was introduced into the Senate of the United States by ex-Governor Kirkwood, providing for the appointment by the President of some suitable person as a Commissioner, whose duty it shouid be to examine and report upon the same to Congress in order that that body might have before them what it would concede to be reliable data upon which they could base their action. The party designated by the President was Brevet Major-General R. C. Buchanan, U. S. A., a gentleman well qualified by large experience for the duty assigned him, having seen some thirty-six years of military service, a good share of which had been spent upon the frontier. Gen. Buchanan visited the State in May last, where every opportunity was offered him by Adjutant General Baker and myself for the fullest examination on his part of this class of our disburse

ments with all the attendant circumstances relating to their origin, necessity, &c., &c. After indicating the character of the abstracts, orders, correspondence, history, &c., &c., which he should require to be furnished with, in connection with each separate organization, the General returned to Washington, and as soon thereafter as possible the same was forwarded to him.

These claims amount in the aggregate to $229,848.23, and were made the subject on the part of the General, both while in the State and after his return to Washington, of his most careful consideration. It was not until the middle of December that his report was submitted to Congress which, after giving with great conciseness the result of his investigation and the reasons governing his conclusions, recommended the payment of the entire amount claimed. Having successfully carried this branch of our claims through this investigation, ordered by Congress, it is left in charge of the able delegation from our State for a safe passage through that honorable body. Should it succeed (and I have no reason to fear otherwise) it will then have to be carried through the hands of the proper accounting officers of the Treasury Department, but I doubt not with fair success. Upon the whole I am decidedly of the opinion that the full measure of justice, so long withheld in the settlement of our military claims, will at length be awarded us, and that no State in the Union will have refunded them at last, a greater per centage of their disbursements than the State of Iowa.

As to the third class of our claims the alleged "deficiency on the part of the General Government in the payment of this State of the five per cent on the sales of the public lands"-I can only say that owing to a misunderstanding on my part of the duties undertaken by the Hon. J. A. Harvey in the settlement of the swamp land claims of the State, but little attention was bestowed upon the subject by the undersigned. As preliminary however to taking it up, I called on the 9th instant upon the Honorable Commissioner of the General Land Office, and requested him to furnish an account current between that Department and the State, in connection with this claim, which will form the basis, when received, of further investigation.

In conclusion, I wish to bear witness to the readiness (with few exceptions) with which officers, ex-officers, and others with whom I have had occasion to communicate upon the subject of these claims, have responded with the sought for information, or certificates, &c. To them, as well as to ex- Governors Kirkwood and Grimes, Representatives Price and Dodge, I am under especial obligations for their cordial assistance at all times, in furthering my endeavors to effect an adjustment of the State claims.

I have the honor to remain your Excellency's obedient servant, J. N. DEWEY,

To His Excellency, Wм. M. STONE,

Governor of lowa.

Commissioner.

SPECIAL MESSAGE.

EXECUTIVE OFFICE, January 24, 1868.

Gentlemen of the Senate and House of Representatives:

There are a few subjects of especial interest to which I desire to call your attention, and which I wish to make the basis of some recommendations for legislative action.

The successful settlement of the claims of our State against the General Government has placed our finances in a most satisfactory condition. Col. Dewey, by whose faithful services so large a sum has been placed in our treasury, ought to receive the thanks of the Assembly, and a compensation more nearly commensurate to the valuable results he has been instrumental in effecting. The good fortune which has attended his connection with this matter plainly indicates the advisability of empowering him to complete its final settlement. I would therefore recommend that he be authorized to prosecute the work to its conclusion, and moreover, that he be allowed a certain per cent upon all claims to be recovered, in addition to the compensation he now receives.

RAILROADS.

The development of our agricultural and mineral resources is largely affected by the completeness and extent of our facilities for transportation. This fact renders it imperative that the State pursue a liberal and even generous policy in dealing with this class of corporations.

The Dubuque & Sioux City Railway Company having failed to comply with the essential conditions upon which their land grant was conferred, I would unite with my predecessor in recommending its resumption by the State. When that shall have been done, let it be bestowed upon some company affording the most indubitable assurances of a rapid and energetic extension of the road. Whatever corporation shall be invested with this valuable grant, let the condition of time be made especially prominent, so that the fertile region which has so long awaited the completion of this line, may be placed in early communication with the great markets of the interior and the East.

The Act of Congress approved May 12, 1864, conferred upon the State a grant of land "to aid in the construction of a railway from a point at or near the foot of Main Street, South McGregor, in a westerly direction, by the most practicable route on or near the 43d parallel of north latitude." This grant of land was conferred upon a corporation known as the McGregor Western Railway Co., but no patents have yet been issued to them by the Secretary of the Inte rior, on the ground that the conditions of the grant have not been complied with by the company. This action was taken only after a careful examination of the subject by a competent officer of the Department. Disclaiming any other feeling than an earnest desire for the promotion of the interests of that section affected by the nonfulfillment of those terms, and, consequently, of the State, I can not perceive how the action of the Secretary could have been otherwise in the premises. The line of road now constructed does not start from the designated point, and does not run in the direc tion proposed by the law of Congress. While a road from McGregor to St. Paul is a most commendable enterprise, and merits. as it receives, the gratitude of Northern Iowa, a sense of geographical propriety forbids us to harbor the idea that such a road coincides with the 43d parallel or secures the object intended in the land grant.

The company, then, which was the beneficiary of the grant, having failed to execute in good faith the trust reposed in them, I deem it the early duty of the State to resume it and hold it for the benefit of some corporation which will undertake and prosecute the work, in