The New York herald., 1879-01-05
UNION PACIFIC.
Government Directors Report on
the Great Railroad.
SEW ERE CRITICISM.
The Condition Of the Line
Not Satisfactory.
ESPECIAL CONTRACT" EVILS.
Too Much Regard for Profit and No
Public Convenience.
SEVERE CRITICISM.
ESPECIAL. CONTRACT" EVILS.
WASHINGTON, Jan. 4, 1S'

Messrs Charles F. Adams Jr., Daniel Chadwick,
George B. Smyth Ralph P. Buckland and Charles c.
Housed, the government directors of the Union Pa
cifc Railroad, commenced their report to the Secre
tary of the Interior by remarking that they all
appointed, with the exception of Mr.. Chadwick,
within the present year. had no previous knowledge
of the affairs of the corporation and only general i'll
formation to it's relations with the government
and that under these circumstances it fortu-
nate that afterward two laws were
enacted by Congress which greatly simplified
their work. By of these acts they continue, the
annual payments. allowances &C.. to be made to the
government by the Union Pacific were fixed, while
by the other a bureau established in con-
nection with the Department of the Interior for
auditing the accounts of that company among
others. These two of legislation effectuay
relieved the present government directors from fur
ther considering many subjects which had engaged
the attention of their predecessors. For the imme
date time being and at least pending the action OF the
acts referred to and which now. it is understood
ready for decision the financial relations OF the gov
ernment and the Union Pacific must be considered
detinitcr settled. This subject therefore, calls
for no further discussion AS respects also the
dtion of the company's finances, its resources and
the disposition made of them the government has it's
own auditor and is in immediate possession of all
the facts and statistics which it would be in the
OF tn b"n, n M
cumbent upon them to further investigate ques-
tious of the PAST connected with the construction
of the Union Pacific road, it's earliest operations.
They have on the contrary. deemed that they would
best subserve the purpose Of their appointment by
strictly conining their attentions to questions of the
present giving the department such information
they might be able to relating to the existing
condition OF the property and policy now pursued by
the direction in the management of the company's
afairs.
THE ANNUAL INSPECTION.
The usual yearly inspection OF the road was made
in September and October last All of the members
of the Board part in 1t with the exception of Mr.
Chadwick. who prevented from doing by
business engagements He therefore does not join III
that portion OF the report derived from personal OBJ
servation OF the property or its management on the
spot. Both locally ON the line and in the
general offices of the corporation at New York
and Boston every facility has been afforded the direc-
may have desired. No disposition to withhold or
conceal has at any time been apparent On the con-
et - @ nrtsd wn,e tha onca
the feeling has been openly expressed that justice
has not been done either to the actions
or intentions of those responsible
for the management of the companys affairs: pub.
lie inquiry at once impartial and intelligent. could.
it claimed result only to its advantage. SO far
as the inquiries the present government directors
have gone they have been of general character and
had related solely to the Two subjects M & arsady re re-
the business policy Of those managing it.. AS re-
specs these also, the inquiry las necessarily been
both partial and superficial The conclusions arrived
ut, tar as they CO. III many respects quite diff
ferent what the directors anticipated when the
could be avoided. In passing upon the material
condition of the Union Pacific road the first point to
judged-whether by that in on the Eastern trunk
lines by that in on the best roads OF the Mis-
sssppi Valley, or by less severe standard which is
usually applied to the newer roads west OF the
Missouri. In view OF the facts, which it is unneces
sary to more than refer to- connected with it's or
ganization and construction. it seems manifestly
right that the Union Pacific should be judged by the
most standard known among the railroads of
the country; No good reason is apparent why it
ul,A Art11 Ina hAld IN fAsf nr Va
and officers should object to it, As
is matter of common knowledge the
road practically built out of the public money
and the stock which now represents its ownership
represents little besides the enterprise and energy
taking. The corporation, the other hand received
from the government an endorsement OF unprece-
dented liberality.
Is THE ROAD WHAT IT SHOULD BEe
The road was designed to be great national thor
oughfare. a monument of public hberality and of
private enterprise Under these circumstances those
representing the government in the conduct of its
affairs would clearly not be justified it, in their
inspection. they applied any standards short
system of the country. Especially would this
be when. in this case. the road Us commercial
annual gross earnings. falling but little short of
Sl3.Oo00Oo the largest. with five exceptions only.
earnings REGULARLY absorbed in the opera.
ton tine road On the contrary. while but three
companies only in the country-the New York Cen
trail and the Hudson River, the Pennsylvania and the
Central Pacihcreportl larger annual net proceeds The
percentage of operating expenses TO gross receipts
fortytwo per cent has during the last three years
averaged lower with the Union Pacific than with
other great rairoad company without exception.
These facts are referred to IN this connection not to
prejudice the corporation, but simply to fix beyond
question the character OF the standard which
should be applied to its road. In applying this
standard however the directors have endeavored to
bear continually in mind the peculiar conditions of
climate. soil. traffic and population under which the
mos, ay"raS,y y ossd for economca m Working that
railroad is also subject to natural laws which seem
peculiar to itself For instance the line was originally
laid out and the road was constructed rather, 1t
would seem, to time and money and to earn
mileage subsidy than with any regard to what are
considered sound engineering rules 1t was sur
face road in which cuts and embankInents care
fully avoided without regard to curvature undula-
tion OF track. As the subsidy was paid by the mile
such method OF construction, while il saved money
on the one hand, earned it the other. In grad
ually converting this original structure into a first
class permanent work 1t would naturally he expected,
according to all established precedent that the align
ments would be rectihed. the embankm kments made
face undulatons would have been reduced
to grade. Experience, however. has shown
that whether sagaciousy designed or otherwise the
original construction was, Tor this particular road.
the best construction possible 1t has enabled the
trackmen to contend successfully with clouds a
fine dry snow, which drift in winter over the plains
hlling every cut but blowing clear of all embank-
mcnts. Accordingly. the whole tendency OF the com
pany the renewal of its road has been seek the
Shoulders of the hills by curves and undulations in
stead of going through them ON the straight lines at
even grade. An effort is made to keep the track
ut all points slightly elevated above the country
through which IL runs.
ussArIsrAcroay CONDITION OF AFFAIRS.
Tile report proceeds to show that respects fuel,
ballast and building material Except wood. and also
respects the matter of grades the supply OF coal
for fuel, the Union Pacific, i'm comparison with the
generality of Eastern roads, is most advantageously
placed. IL IN also noticed that the business. both
freight and passenger. through and local whether
originating ami ending the line of the road or not
is usually carried long distances that none ot tho
complicated movement aud frequent interchange OF
trains Is required which IL usual on Eastern roads.
This, of course necesstatcs no such elaborate ana
costly arrangement Of tracks, sdngs, yards build.
ings and general appliances s found
upon roads with much smaller traffic in
other portions of the country. These need not,
therefore, be looked for The Union Pacific at pres
ent requires only those accommodations necessary
for doing business of the simplest known charac-
ter Taking all these things into consideration and
making full allowance for them the directors say
they unable to report that the present condition
Of the Union Pacific road Is In all respects satisac
tory. They contnue;--On the contrary, when