Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-01-06
UNION PA{ y. r.. R.
| = -I-gIaNI.
Report of the Governlment Examiners
Management Severely Criticised in Sew
eral Essent1als.fs[ s HI I VA ~


eral Essentials I .1 81. IS
WASHINGTON, ID. O., January 4.-The
government directors have sent their
annual report to the secretary of the interi-
on They are Of opinion ltheg Union Pacific
railroad, in view Of the extremely liberal aid
it has received from the government, and the
bril- (iRncy of its success as q, commercial en-
terprise, should be judged BY the most severe
standards known among the railroads of the
country. " The course Of the company in
itsH business towards i9t the "a pub
lie q 49, lin some respects considered open
to, much adverse, CRITICISM on the ground of
|illiberality, but nevertheless the present
tariffs do not appear to be extorti onate. The
directors in their. report think the enact
ment of the recent pending act has q direct
tendency 70 retard Or prevent the adoption Of
q more liberal but, less Immediately prot table
policy by the company, the government hay
ing thus become one Of The. principal bene-
lfcja sl;i in the present system Of. manage
men Fl by eyaeting g large proportion Of pro-
ceeds.. They report that s consolida-.
ton !. Of !, the Union : Pacific with
its connecting branch lines, is not now de-
sirable, but they recommend that the com
psnies be compelled to submit their differ
enees It On the subject Of prorating to de-
tors. ,, ,,'[,'s >''1.'i3's'.'''l @I'l''5.,
III conclusion the directors endorse The
recon e1pdations 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 TIE road, and receive. from It an
similar sections on the other, ia order that
poH6 rarity N ou Giopooo ~ 10, ~,
tracts, in which way alone they are desirable
or, acceptable of profitable use BY the pur-
chaseYs. I 'R1'5s' '''
The secretary of the interior in reply to
the letter Of Representative Patterson, ,ex-
presses the opinion that, Colorado nav obtain
the lands granted BY the agricultural act, by
showing compliance with, the terms Of the
granting act. ...,.s,..
The policy as respects completion and re-
neWal Of the road, which the company ap-
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 q fairly
liberal one. Tho property instead Of deter
Grating is being brought up with steadiness,
though slowly, I'd a fair average degree of ex-
cellenee. It is still, however, far short Of
what, with its original endorsement and large
present earnings, it ought to be, and very TAI
short in almost every respect Of
that high standard of excellence both il
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 aud study of detail
! which would indicate that it is the work 81
amy 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 removed under circumstances
I unfavorable at least to its thorough organiza.
tion. Its ownership has more than once
i changed, and, as i. well known, it has al
| times been il. the hands of men more SO:
licitous as, to the movement of the stock
market than honestly DESTROYS of attaining
even material excellence. -..t. sass
/ .No5system whatever has been pursued in
filling up subordinate situations as vacancies
I occurred. Officers have come to the road
/ from all sections of the country, aid have
/ brought with them theories and methods
! which are far from uniform. They did not
recognize the same standards, nor WAS it Oh.
| vicus, in many cases, that they had any con
ception of what the highest standards were.
| The road is reported libsrally equipped
4 with rolling stock. The company seems to
| be pursuing Systematic and sufficiently lib:
eral policy Of renewing its bridges and road
but although as a whole not yet brought up
T to q proper. standard of excellence, is being
| rapidly improved, and the completion OF
| needed improvements will be a simple and
I Inexpensive matter. However, it might be
completed and brought throughout up to a
first class Standard 7-i = ne
It's obvious tho percentage Of operating
| expenses to earnings is now smaller than il
| should be-. lhe policy of the government
should be public spirited policy. The COM
rnunity has the right Ito EXPECT that in its
l.commereial relations strict business princi-
| pies should BE tempered with liberality. II
would not seem therefore unreasonable to
TASK 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 il >i.lsz t.sa.t.il
dnany ievent it rs clearly he mission OF
| those representing the national government
in the Union Pacific direction, il, 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 discrimin atoms, and to deal
reasonably and equitably both with other
roads and with differently circumstanced in
! dividuals and communities! iE.- RfFes =
All things consider ed, its tariff, though
high in comparison with those on. some
trunk lines Of the Fast, are lower than the
| average and in no respect appear extor-
tionate. These tariffs, which practically put
in irons the transcon tinenta1 business Of the
country, were devised! by two freight agents,
were never before being publicly announced
submitted for consideration even to the ex-
iecutive committee or directors, and were
finally put in force to the utter surprise of
the pubhe- or verbal authority, so far as can
be ascertained Of the president and single
director. -!as5f' t5L-5 5-s<St}-1i.3 .-itEf.s
+ 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 wifi
always remain one real safeguard against
|.disesiniinat atoms. The act of May z; 1873,
commonly known as the Pacific railroads
funding bill, would Seem to have given its
formal approval to the present business
policies OF both these corporations BY insist
ing on having q share Of their results. Tn
the report which accompanied that act the
Senate Judiciary committee very distinctly
rest itson the net earnings of the road to
.whiehit applies, and express the opinion
that those earnings will be largely increased
in the future, and again that they in the fu-e
lture viii not be less than they were in the
five years from 1872 to 1876. Those net
earnings in part were, however, and if main
tanned they will in the future continue to be
thedirect result OF that policy On the part of