River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1878-11-28
The Pacific Railroad.

The frst annual report OF the auditor OF /
lsilroad accounts has been submitted to the /
secretary of the interior. Although the /
bureau has been in operation only few
months, and many Of the railroads have re-
fused to furnish the information required of
them, yet the facts gathered together viii
serve to give the public much valuable infor-
nation about the condition and operation Of
some Of the more important railroad lines IN
the country.
The auditor recommends that Congress
authorize the Central branch of the Union
Pacific in Kansas TO continue its road to the
junction with the Union Pacific at or near
the Tooth meridian; and that in place Of 2
loan of credit and grant Of lands it should
be entitled to grant of snch SUM per mile
as Congress may determine, not to DO repaid
4 by the company, but that tho mails Of the
United States shall be forever carried over
said road free of charge. He also recon-
mends that the government directors of the
| Union Pacific railroad be appointed govern
ment directors OF the Central Pacific aud she
4 several branch reads of the general Pacific
railroad service.
| The following is the auditors statement
with regard to the Union Central and Kansas
! Pacific roads,
/ 1t is impossible 70 give that exact and COM
plete statement of The affairs of the compa-
MES affected which it is ultimately designed
10 do. Tie information received directly
from the companies is tebulated in the APP
pendix under appropriate heads. The ia
compie teness of TIE reports renders comment
or discussion in regard to the bearing of the
information furnished upon the interests of
the government out Of the question at this
time. Much patience and forbearance have
been exercised in the hope that the conlpa-
MES affected would comply with the law
without resort being had to the penalties
prescribed therein, and that they would real
ize the fact that medium Of intelligent
communication with the government and the
people. by which q true statement of their
affairs, their adversely or prosperity, could
be made, was I'll that was required in order
that they might be treated with fairness
and Justice by the law making power.
The Union Pacilic railway company has
commenced to render the reports called for,
but under reservation by advice of their
law officer, which cannot DO accepted at this
Office. A copy of the letter Of the president
, of the company containing this reservation
is given in appendix 4" The directors
have consented to submit the books and
records Of the company to inspection, which
has been partially done in the Office of the
company at Boston and some of the infor-
nation given in this report has been SO yeri-
fed. The questions regarding the constltn-
tionality of the act creating this bureau, the
rate of compensation for carrying the mails,
the disposal of their lands in connection
] with the 'sDudymont decision" by this de-
{ partment, the so called discrimination against
, the Kansas Pacific railway company, the date
IF fha commission nf fHa road
the constitution of met earn
ings," in connection with the 5 per cent.
thereof payable to the United States, end
matters connected with the Credit Mobilier
and the contracts under which the road was
: built, have been unquestionably, and may be
still, the source Of much expense and some
I hardship to the company, not only from the
) cost Of litigation and the locking up Of large
sums of money to which they may be equit-
ably entitled, but much more SO from their
general influence upon the valuable property
under its control and the uncertainty hang
ing around it; but for ali this and much more
the company must blame its officers or their
! predecessors and their own litgious spirit,
This company, being fully able to comply with
the requirements of Law establishing sink
} ilg fund, and nothing to conceal in its pres
ent management or affairs, its accounts, as
I now kept, being in excellent condition, and
its affairs under the management OF able
officers, would do itself much more justice
by aequiescing in all the requirements OF
| law than it wall by interposing litigation ct
every step, while ON the other hand the gov
eminent, in q spirit of equity and fairness.
as well as self-interest, cannot well do any
-. thing that shall tend TO disrupt or not con-
: serve this great property for the use Of the
government for the great advantages it con
] fers upon the nation, and for the beniit or
! reward Of its enterprising owners.
, The Central Pacific Railroad company has
not complied with the law, and certificates as
to their neglect to do have been submitted
from time TO time to the secretary for pro-
ceedings TO be instituted for such neglect.
No reports have been furnished 10 this Office
under the law. report rendered Under sec
ton 20 of the act of 1862 and under the
act of June %, 1868, which have been re-
pealed, was received by the department Dc
tober 5, 1873, and referred to this Office. A
great discrepancy appearing between the
sworn statement Of the president Of the
: company. and the one made mp from the fig
ures given in the printed repori TO stock
holders, an explanation was called for. >
question arises in regard to this company
as to the right they may or may not have to
lease hundreds of miles of another road IN
which their own stockholders are the prlnci-
pal owners. and to pay millions of dollars
for the privilege OF operating the same. z
In regard to the regulation of rates for
transportation, secti IN Is of the act of 1862,
before alluded TO, seems to prevent any in
ference unless Congress shall see tit to order
an inquiry and investigation, with The requi
site power u send for papers and persons.