The Wellington enterprise. [volume] (Wellington, Ohio) 1867-188?, 1879-01-09

of 1876, and inasmuch as Mr.. Raw, counsel for
Sherman, had communicated to the commit
on this subject, the object OF the committee
on this visit was accomplished. The members
of the committee left for Washington this
afternoon.
The Union Pacihc---RepOrt of the
Government Directors.
WASHINGTON, Jan. 4.
The Government directors have sent their
annual report to the Secretary of the Interior.
Thev are of the opinion that the Union Pacif-
ic, in view of the extremely liberal aid it has
received from the Government, and the bril-
liancy of its success as a commercial enter
prise, should be judged by the most severe
standards known among the railroads OF the
country. Measured by this standard, they re-
port the deficiencies many and apparent. At
the same time the property is being brought
up with steadiness, though slowly, to fair
degree Of average excellence. The failure to
replace with steel rails the worn out iron rails
is sharply criticised, and the directors say al
though the policy now pursued by the COM
pany In regard to the material condition Of
the property is careful and sufficiently safe, it
is by no means liberal, nor such as the country
has a right to expect or the Government to
insist upon.
The policy as respects the completion and
renewal of the road which the company appa-
reutly has pursued and now is pursuing might,
ness principles In the shrewd management of
a practical monopoly, be deemed fairly lib
eral one. The property, instead of deteriora-
ting, is being brought up with steadiness,
though slowly, to a fair degree Of average ex-
cellence 1t is still, however, far short of what,
with its original endowment and large present
earnings, It ought to be, and very far short in
almost every respect Of that high standard of
which those familiar with the great trunk
lines of the country are now accustomed. There
is, however, nothing in the present shape of
organization, as regards the division OF labor
and study of detail, which would indicate that
it is a work Of any superior organizing mind.
1t gives rather the impression OF being
simple even to crudencss, and quite lacking In
system. 1t is true Union Pacific has al
cumstances unfavorable at least to its thor
ough reorganization. Its ownership has more
than once changed, and, as is well known, It
has at times been,in hands more solicitous as
to the movements of the stock market than
honestly desirous of attaining even material
excellence. No system whatever has been
pursued In Filing up subordinate positions.
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 some standards, nor was 1t obvious
they in many cases have any conception Of
what the highest standards were.
The road is reported literally equipped with
suing a systematic and sufficiently liberal pol
icy OF renewing its bridges, and the road bed,
although as whole not yet brought up to the
proper standard of excellence, Is being rapid
ly improved, and the completion of needed
improvements will be a simple and inexpen-
sive matter.
However it might be II the road were COM
pleted and brought throughout up to a first
class standard, it is obvious the percentage of
operating expenses to earnings is now smaller
than 1t should be. The policy of the company
should be public spirited policy. The com
nunity has the right to expect that in its
commercial relations strict business principles
should be tempered with liberality. 1t would
not seem, therefore, unreasonable to ask the
development of the country, and easy and
economical exchange of traffic should be con-
sidered by those invested with the manage
ment, as well as the strict business view of
the largest profit. In any event it is clearly
the mission Of those representing the Nation
al Government in the Union Pacific direction,
If, indeed, they have any mission to develop
the principle of public responsibility, and
keep 1t continually In the minds Of those
more Immediately interested with the man
agement. The business policy of the corpora
tion should be large and dliberal-minded, above
all policy which seeks, as far as circumstances
to deal reasonably and equitably, both with
other roads and differently circumstanced in
dividuals and communities.
All things considered, its tariffs, though
lines of the East, are lower than the average;
in no respect appear extortionate. These
tariffs, which were practically put In the
trans-continental business of the country,
were devised by two freight agents, never be-
fore being publicly announced or submitted
for consideration even to the Executive Com
mittee or Directors, and were finally put in
force, to the utter surprise OF the public, by
the verbal authority, SO far as can be ascer-
tanned, of the President and single di-
rector.
The through business over the Union Pa
cifc is mainly done by large houses. They
published tariff rates, aud these lack that ele-
ment of publicity which will always remain
one real safeguard against determinations.
By the act of May 7th, 1878, commonly
known as the "Paciic Railroads Funding
bill," the Government would seem to have
given its formal approval to the present
business policies Of both these corporations
by insisting on having share of their re-
suits. In the report which accompanied
that act the Senate Judiciary Committee
very distinctly rests it on the large net
earnings of the roads to which 1t ap-
plies, and expresses the opinion that the Sc
earnings "will be largely increased in the fu-
ture;" and again that they sin the future will
not be less than they were in the five years of
1S72-6." These net earnings in part were,
however, and II maintained they will in future
continue to be, the direct result of that policy
ON the part Of those managing the Union Pa
cifc which the directors, In this report. have
felt 1t their duty to criticise. The directors
have already intimated their belief that
the percentage of net earnings (ffty-
eight per cent. returned by the Union Pacific
than 1t should have been. The adoption by
the company of a liberal policy as respects re-
newals and local business development would,
crease tSat SereentaSe , s The Government 10 Sa @
should, however, for obvious reasons, exert
all its influence to that end.
Meanwhile the legislation referred to would
seem to sanction q wholly different policy, in
the unnaturally large results of which 1t is
proposed to secure its fsir share to the Nation
al Treasury. The Government becomes, in
short, one of the principal beneficiaries from
the system of railroad management, which is,
to say the least, in some respects, unjust, In
some respects harsh, and In nearly all respects
illiberal to its own citizens. While the Gov
ernment occupies this position 1t would seem
difficult for those who represent 1t more Inn
exercise any considerable influence in favor of
a policy more liberal but less Immediately
profitable.
The course of the company in its business
policy toward the public is, in some respects,
considered open to much adverse criticism on
the ground of illiberality, but nevertheless,
present tariffs do not appear to be extortion-
ate. The directors, in their report, think the
enactment of the recent funding act has had
direct tendency to retard at present the
adoption Of more liberal but less immediate
ly profitable policy by the company, the Gov
ernment having thus become one Of the prin-
cipal beneficiaries in the present system of
management by exacting a large proportion
OF the proceeds. They report that a consolf-
dation Of the Union Pacific with its connect
ing branch lines is not now desirable in public
interests, but they recommended that the
companies be compelled to submit their 6if-
ferences on the subject Of "pro rating" to
decision of some impartial board of arbitra-
tors. In conclusion, the directors indorse the
Recommendation of Secretary Schurz for leg
islation which shall enable the Government
Crs1ipg or desert LANDS On one side of the
road and receive from 1t all similar sections
on the other, in order that each party may
dispose of the land In large tracts, in which
alone they are desirable or susceptible of
profitable use by purchasers.