New-York tribune., 1879-01-06

Contrary .ad both and in dsts
pnrsnsd in the conduct business Az things con-
sar G ss SeTn nn hfn ns. o. fsc East
tnaa Tho average aud respect at once Practca,
sn on" ,ts line whrre it finds any business to speak
Of II meets competition III some lorn, a ~ ~
ands no business These alone would prevent ts
adoption OF extortonate rates The Governmet VI,
s9ch does not seem TO have been It's policy IN the ad-
iustment Of ITS tarG. the road mas .syews bas,pes
like and money making, fully awake To all tne adVa-
none OF them but rarely oppressive witha" Neverhe-
less, they are of opinion tnat nos as ,,%atnd
or ur eral II has been fact, such policy as might
naturally be expected from capable local N nagenent
cepuon OF any such broad and perhaps statesmanke
| views az the directors have endeavored TO suggest
asement Of a private enterprise, the object OF which Is
the largest immediate returns at once safe ana
NOT unreasonable its outstanding securities, the
present busin ss policy OF the Union Pacihc Is
open to few criticisms Ihey illustrate their meaning
charged transportation OF coal to Utah. where an
mid mn Of T proabe trac for the company
sufficiently liberal and farsighed TO foster the
| smelling industry by low rates OF transportation
The practice of charging higher aggregate rates for
transportation points its own line where there Is
competition than to competitive points and beyond
them Is subject criticism; the Government directors
believing that there whatever for this ae
ton in the case OF road circumsanced as the Union
| Pacific now Is. The directors say:
Such policy OF petty discrimination can hardly be
deemed otherwise than wholly inconsistent Wtn any
nigh Of public responsibility Tue directors con
demn the strategic action OF the Union Pacific ROAD last
Summer III advancing its rates for through transport
ton except to arge firms would contract to make
shipments 10 California wholly by land IDis move
| was made, not by petty local road, nor by a
competing trunk lne but by a great subsidized CONT
| nenfcl thOroughtare. As sucn it might naturally be
inferrcd that 1t was made only after ample consdela
|
tors Ii -. however. fact snguarly illustrative OF the
the policy UnIon Pacific is shaped that this
mesgrr which P,aee p1r ID IrYns hs a free t
agems, never before Dc NJ puDiely annonncru SUD
mttee OF the Board OF DiectJrs mucD less 70 ne lu
board and finally put ~ fo ee to the utter srrse
OF tue public, lhr verbal authority so lar as can D.
scertaDed of the Presden aud single director 1t Is
unnecessary 10 c. mhent on such "a lnethti oi cor
| While 40 lar as the measure Is considrrei tue
objections to 1t are apparent Tne through bus ness
This Is en- ugh for such houses can OF course 40
II most cheapy Tue measure under dscl'"On no% %e
done by but tue large houses lhey havs specInt
eonr"e,s eo,enH & ~ - a. I"c p m secret transscIons
things which than all others should be public Inc
sprc 4 contracts ma, he equal as between shppos or
tey NAV not Tne dIrectors nave every believe
that they bn they none the less are aehnS IN tna
element OF publicity which sucn matters VIII always
remain the real safeguard against discrmlndtOhs
THE FUNDING ACT OBJECTED TO-
The report contains the following interesting passage
concerning the recently enacted Funding Laws
Before passing from the consideration of the policy
prsIed by Union Pacific IN It's relations with the
general business puOc, there are CERTAIN matters toch
ing the winch Congress has adopted toward tat
company whcn II srens necessary TO refer TO- from tne
wtnAnOwu circumstances cohhecteu Win tue conSIruc
ton OF the roai, As well as from inc iact that
lne United states Government Is its largest
creditor, Congress mas Always peeii III PotL"i 10 %
exercise n great Il not IA controlling lnnuence
over t. It might, through aconservatNe ana ntrlgeht
nubc supery ,o have developed idea Of response
bllty ,he mdnagement. aud compelled the adoption
Eaye endravorcl to suggest. in doing it would
naturally looked TO the Increased dement's To be de-
country 10 reimburse the Government for its
! outhys the enterprise rather tDan TO
to De - rif ba ed on hard bgsi1eHs 9ri,
cipe 1t .eeue fairy questionable whether by ITS re-
legislation Congress mas not committed itSel IN
tGe net Of Nav = ISIS commonly known the Pacific
Railway funang bIi, the Government would sem TO
Business p ces Of bOJn thoe corporations by IN
slsting on having snare OF ther @ ii Ind ~ sr 1v
Committee very dis uncy rest on the large net earn
nnSon thai Lose earnings wI be largely Increased
tn furc, and again. tnat they III me Iutnle Will not
be less were IN the hye year. iSa2-Io Ihose
net earnings part however, and II maintained
they viii in the fusure continue 10 ptthe drect result II
that policy the part OF those managing te Union
Pacific the directors III this report efe IL ther
Tbc dir ctors have already inmated trer belief that
the percentage OF uct earnings js per cent? earnd Dy
crSbIy larger tnan it should have been adoption
b. the comp ny liberal Obey a. respects renewa!s
and local business eytlOpmcut would, unqucstiOnahy,
| for some years to come d crease that pc
centase. The Government should however, ior
! 0bylOrs reasons, exert al its Influence 10 that
enu Meanwhile the legislation referred 10 would EN-
10 -anctiOn tnt wnully hercnt policy, III the uf-
naturally large lcsuts It proposed to secure
| Its faIt TO tine National Treasury. Tue Govern
IN nj becomes III snort. the principal benehciaFes
nom - 80 railroad manageIn N which Is, 10 say
least, III SOME respects unjust IN many respects
! harsh, and in nearly ali Respects HhDeral To
! - own citizens. While the Government occupies
In postOn 1t woud difficult FOR those who repre-
ut il uJ.r immediately tne direction OF the COM
pauy to considerable influence IN FAVOR OF
| policy more LIBERAL but less immediately prOnaDIe.
Tie directors are OF opinion that con-
suatlOn OF the Union Pacific Road with lis connecting
braIca lines Is not now desirable IN the
| pubnc interests, but they recommend that
! the cOmpdues be compelled TO submit their dlhef-
cnces subject Oi prorat ng 10 the decision OF
some impartial board OF arOtraorS In conclusion tney
| r,cuiuen ditIon Ui Secretary SchuF2 Tor
egslon which shall enable the Government to cede to
the railroad conpaay the sections OF grazing or
desert side OF The road and receive from
the similar sections the other IN order that each
pirty NAV dispose OF these lands IN large tracts, III
which alone they desrtOie or susceptible OF prOn
| able use, by purchasers.