Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-01-06
UNION PACIFIC r. r.
Report OF the Government Examiners
Management Severely Criticised In Sew.
eral Essentials

ONlOI u AClI IN IOs III.
Report OF the Government Examiners-
Management Severely Criticised In Sew
eral Essentials.
WASHINGTON, d. c., January 4.-The
government directors have sent their
annual report to the secretary of the interi-
or. They are of opinion the Union Pacific
railroad, in view of the extremely liberal aid
it has received from the government, and the
brlillancy of its success as commercial en-
terprise, should be judged by the most severe
standards known among the railroads of the
country The course of the company in
| its business towards the pub
| lie is IN some respects considered open
to much adverse criticism on the ground of
| iliberality, but nevertheless the present
tariffs do not appear to be extortionate. The
directors in their report think the enact
ment of the recent pending act has direct
tendency to retard or prevent the adoption of
more liberal but less Immediately profitable
policy by the company, the government hav-
ing thus become one of the principal bene-
tclarles IN the present system of manage
ment by exacting large proportion of pro-
ceeds. They report that consolida-
ton of the Union Pacific with
its connecting branch lines, is not now de-
sirable, but they recommend that the COM
panies be compelled to submit their differ
ences on the subject of prorating to a de-
cision of some impartial board of arbitra
! tors.
In conclusion the directors endorse the
recommendations of Secretary Schurz for
legislation which shall enable the govern
ment to cede to the railway companies all
sections of grazing or desert lands on one
| side of the road, and receive from it all
similar sections on the other, in order that
each party may dispose of the land in large
tracts, in which way alone they are desirable
or acceptable of profitable use by the pur-
chasers.
The secretary of the interior in reply to
the letter of Representative Patterson, ex-
presses the opinion that Colorado may obtain
the lands granted by the agricultural act, by
showing compliance with the terms of the
granting act.
The policy as respects completion and re-
newal of the road, which the company APP
parently has pursued and now is pursuing,
might perhaps, if judged by the test of strict
business principles in shrewd management
of practical monopoly, be deemed fairly
liberal one. The property instead of deter
Grating is being brought up with steadiness,
|
cellence. 1t is still, however, far short of
what, with its original endorsement and large
present earnings, it ought to be, and very far
short in almost every respect of
that high standard of excellence both in
scope and detail to which those familiar with
the great trunk lines of the country are now
accustomed. There is, however, nothing in
the present shape of the organization as re-
CARDS division of labor and study of detail
which would indicate that it is the work of
any superior organizing mind. It gives
rather the impression of being simple even
to crudeness, and quite lacking in system.
It is true the Union Pacific has always been
operated and renewed under circumstances
unfavorable at least to it's thorough organiza-
ton. Its ownership has more than once
changed, and, as is we'll known, it has at
times been in the hands of men more So
licitous as to the movement of the stock
market than honestly desirous of attaining
even material excellence.
No system whatever has been pursued in
filling up subordinate situations as vacancies
occurred. Officers have come to the road
from all sections of the country. and have
brought with them theories and methods
which are far from uniform. They did not
recognize the same standards, nor was it OBJ
vious, in many cases, that they had any con.
ception of what the highest standards were.
The road is reported literally equipped
with rolling stock. The company seems to
be pursuing systematic and sufficiently lib
eral policy of renewing its bridges and road
but although as whole not yet brought up
to proper standard of excellence, is being
rapidly improved, and the completion of
needed Improvements will be a simple and
inexpensive matter. However, it might be
completed and brought throughout up to a
first class standard.
1t is obvious the percentage of operating
expenses to earnings is now smaller than it
should be. The policy of the government
should be a public spirited policy. The COM
munity has the right to expect that in its
commercial relations strict business princi-
pies should be tempered with liberality. It
would not seem therefore unreasonable to
ask the development of the country, and an
easy and even an economical exchange of
traffic should be considered by those invested
with the management as we'll as strict bust.
ness views of largest profit.
In any event it is clearly the mission of
those representing the national government
in the Union Pacific direction, if indeed, they
have any mission, the develop the principle
of public responsibility, and keep it con-
stantly in the mind of those more immedi-
ately interested with the management. The
business policy of the corporation should be
large and liberal minded. Above all a policy
which seeks, so far as circumstances will per-
NIT, to avoid all Determinations, and to deal
reasonably and equitably both with other
roads and with differently circumstance in
dividuals and communities.
All things consider ed, its tariff, though
high in comparison with those on some
trunk lines of the East, are lower than the
average and in no respect appear extor-
tonate. These tariffs, which practically put
in irons the transcontinental business of the
country, were devised by two freight agents,
were never before being publicly announced
submitted for consideration even to the ex-
ecutive committee or directors, and were
finally put in force to the utter surprise of
the public or verbal authority, so far as can
be ascertained OF the president and single
director.
The through business over the Union
Pacific is mainly done by large houses. They
have special contracts covering it at less
than the published tariff rates and these
lack that element of publicity which will
always remain one real safeguard against
determinations. The act of May Z 1878,
commonly known as the Pacific railroads
funding bill, would seem to have given it's
formal approval to the present business
policies of both these corporations by insist
ing on having share of their results. In
the report which accompanied that act the
Senate judiciary committee very distinctly
rest it on the net earnings of the road to
which it applies, and express the opinion
that those earnings will be largely increased
in the future, and again that they in the fu-
ture will not be less than they were in the