, 1879-01-05

centage Of operating expenses to the earnings Is
now smaller than 1t should be-
The policy of the Company should be q pup
lic-spiritcd policy. The community has the
right to expect that in Its commercial rela-
tions strict business principles should be tenn
pered with liberality. 1t would not seem,
therefore, unreasonable to ask the deVelopIhenII
Of the country. and easy and even economical
exchange Of traffic should be considered by
those invested With the management as well as
strict business view OF the largest pront. IN
any event, 1t Is clearly the mission OF those rep
Union Pacific. direction, IT, indeed, they have
any mission, to develop the principle Of public
responsibility, and keep. 1t continually
IN the minds Of those more immedi-
ately interested with the management;
be large and lkbceal k minded, above ali, : pol
icy which seeks, SO far US circumstances Will per.
nit, to avoid al Discrimination, and to deal
reasonably and cquitab1y both with other roads
aud with differently circumstanced individuals
and communities. All things considered, ITS
some trunk:lines OF the East, ore lower than the
average, and in no respect appear ektortionate.
These tariffs, which practically put in irons the
transconttnentai business OF the country, were
devised By two freight agents, ,se5 were
submitted for consideration even to the Execu-
tive Committee OF the Directors, and were fnal-
~ put in force to the utter surprise OF the pub
nc IN verbal authority, SO fur MS can be ascer~
taincd, OF the President and single Director.
The through business over the Union Pacific
is mainly done BY large houses. They have
Special contracts covering 1t at less than the
publishsd tariff rates. and these lack that c1e-
ment OF publicity which will always remain ono
real safeguard against Determinations.
By the act OF May Z, 1878, commonly known
as the Pacific Railroads Funding bill, the Gov
ernmcnt would seem to have given its formal
approval to the present business policies Of both
these CORPORATIONS by Insisting on having
share Of their results. In the report whtch
accompanied that act, the Senate judiciary
Committee very distinctly rest it on the large
net earnings Of the roads to which it applies,
and express the opinion that those earnings
twill be largely increased In the future"; and
they were in the five years 1S72'76." These
net earnings in part we're, however, and if main
taincd they will in future continue to be. the
direct result Of that policy on the part Of those
managing the Union Pacific, which the Direct
ors in this report have felt it their duty to critf
else. The Directofs have already intimated
their belief that the percentage Of net earnings
1853 per cent? returned by the Union Pacific dur
ing tue last five years is considerably larger than
it should have been.
policy as respects renewals and local business
development would unouostionably for some
years to come decrease that percentage. The
Government 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
unnaturaly large results, Of which it is pro-
posed to secure its fair share to the National
Treasury. The Government becomes, in short,
one OF the principal benetlciaries from the
system OF railroad management which is, to say
the least, in some respects unjust, in many re-
spects harsh, and in nearly all respects illiberal
to its own citizens.
While the Government occupies this position
it would seem difficult for those who represent
it more Immediately in the direction OF the
Company to exercise any considerable influence
in favor Of policy more liberal but less imme-
diately profitable.