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The act of March 3, 1879, authorized the appointment by the President of three persons, to form, in connection with the Commissioner of the General Land Office and the Director of the Geological Survey, a commission on the codification of existing laws relating to the survey and disposition of public lands. It was made the duty of the commission to report to Congress within one year from the time of its organization: First, a codification of the present laws relating to the survey and disposition of the public domain; second, a system and standard of classification of public lands, as arable, irrigable, timber, pasturage, swamp, coal, mineral lands, and such other classes as may be deemed proper, having due regard to humidity of climate, supply of water for irrigation, and other physical characteristics; third, a system of land parceling surveys adapted to the economic uses of the several classes of lands; and fourth, such recommendations as they may deem wise in relation to the best method of disposing of the public lands of the western portion of the United States to actual settlers.

The following named gentlemen were appointed as members of the commission July 1, 1879: J. W. Powell, A. T. Britton, Thomas Donaldson. The commission, consisting of the above named, together with Commissioner of the General Land Office and Director of the Geological Survey, organized on the 8th of July last, and has since been continuously at work discharging the duties imposed by the law.

The commission has visited all the Territories and the Pacific States, and taken much testimony as to the character and the classification which should be made of the public lands in the various localities visited.

It is believed by the commission that it will be able to report on the classification of the lands, and the proposed changes in the laws for the survey and sale of the same, on or about January 1, 1880. The work of codifying existing land laws will require a much greater length of time for its completion.

The report of the Auditor of Railroad Accounts herewith presented gives an abstract of the operations of his office under the laws relating to indebted Pacific Railroad Companies and certain Land-grant Railroad Companies during the fiscal year ending June 30, 1879.

The necessity which existed for the creation of this bureau was pointed out in my last annual report, and is more fully shown by the experience of last year.

It is suggested by the Auditor in regard to the accounts for services performed by the Pacific Railroad Companies that they be referred by the several accounting officers to this Department or to the First Auditor of the Treasury for revision, record, and report, before payment is