The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1878-11-27
The Pacific Railroad.

luC INClllC NUllIUuus ta
The first annual report of the auditor OF
railroad 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 will
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 it's road to the
junction with the Union Pacific at or near
the Tooth meridian; and that in place of a
loan of credit and grant of lands it should
be entitled to grant Of such sum per mile
as Congress may determine, not to be repaid
BY the company, but that the 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 and the
several branch roads 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 to give that exact and COM
plete statement of the affairs of the compa-
MES affected which it is ultimately designed
to do. The information received directly
from the companies is tabulated in the APP
pendix under appropriate heads. The in
completeness of the 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 compa-
MES affected would comply with the law
without resort being had to the penalties
prescribed therein, and that they would real
ze the fact that medium of intelligent
communication with the government and the
people, by which true statement Of their
affairs, their adversely or prosperity, could
be made, was all that was required in order
that they might be treated with fairness
and justice by the law making power.
The Union Pacific railway company has
commenced to render the reports called for,
but under reservation by advice of their
law officer, which cannot be accepted at this
Office. A copy of the letter of the president
of the company containing this reservation
is given in appendix ST." 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, end some of the infor-
nation given in this report has been so veri-
fed. The questions regarding the constitu-
tionality of the act creating this bureau, the
rate of compensation for carrying the mails,
the disposal of their lands in connection
with the 'Dudymont decision" by this de-
partment, the so called discrimination against
the Kansas Pacific railway company, the date
of the completion of the road,
the constitution of ssnet earn
ings,'' in connection with the 5 per cent.
thereof payable to the United States, and
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
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 all this and much more
the company must blame its officers or their
This company, being fully able to comply with
the requirements of law establishing a sink
ing fund, and nothing to conceal in its pres
ent management or affairs, its accounts, as
now kept, being in excellent condition, and
its affairs under the management of able
officers, would do itself much more Justice
by acquiescing in all the requirements of
law than it will by interposing litigation at
every step, while on the other hand the gov
eminent, in spirit of equity and fairness,
as we'll 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 benit or
reward of its enterprising owners. r
The Central Pacific Railroad company has
not complied with the law, and certificates as
to their neglect 81 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 to this Office
under the law. A report rendered under Sec
ton 20 of the act of 1862, and under the
act of June 25, 1868, which have been re-
pealed, was received by the department. o.
tober 5, 1878, and referred to this Office.
great discrepancy appearing between the
sworn statement of the president of the
company, and the one made up from the fig
ures given in the printed report 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 princi-
pal owners, and to pay millions of dollars
for the privilege of operating the same. + +
In regard to the regulation of rates for
transportation, section 10 of the act of 1862,
before alluded to, seems to prevent any in
ference unless Congress shall see fit to order
an inquiry and investigation, with the requi
site power to send for papers and persons.
The Fisheries.
London Telegraph
In fairness, however, we must acknowledge
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