Sacramento daily record-union., 1880-12-08
THE REPORT OF THE UNITED STATS
AUDITOR OF RAILROAD ACCOUNTS.

The report of the United States Auditor
Of Railroad Accounts, which we printed on
Monday, contains some observations which
have a significant bearing upon the rela-
tions between the Pacific Railroads, the /
Nation and the State. Referring to the
fact that the Central Pacific Railroad has |
opened new and shorter route from San
Francisco to Sacramento, via Benicia and |
Port Costa, the Auditor says: s'This |
81 route Is over roads not subsidized by the |
"United States. The Eastern overland
mail is carried on this route, and the
''bulk of the overland freight and passen-
ger traffic is done upon it, in preference
8" to the much longer subsidized lines.
The question suggests itself in this con-
nection, however, as to whether three
or four hours quicker transit is more to
be considered by the Railway Mail Ser
g. vice than the retention of larger or
smaller proportion of the compensation
g for carrying the mail. More important
even than that is the fact that the use OF
"the new route reduces the amount OF
through and local business of the subsi-
dized lines extending from Sacramento to
Niles, via Tracy, on the net earnings of
(which the Government is entitled to
"25 per cent. under the require
''ments of the sinkingfund law
and in the same direction, but OF
"vaster proportions, is the still greater
"fact that when The junction of this CON-
s'pany's leased lines from Goshen south
"and east be effected with those OF the
Atchison, Topeka and Santa Fe Com
''pany in New Mexico, of every dollar of
''overland e business diverted and done On
''that route at least fifty cents will be
"lost from the payments on the part OF
the Central Pacific Railroad Companies
t' to the Government. These observa-
tions deserve to be studied carefully, for
they serve to illustrate the radical differ
ence between the State and the Federal
view of the railroad relations The Au-
ditor, regarding the extension of the Cali
fornia railroad system solely from the
standpoint of Federal interest, processes
alarm and dissatisfaction at the fact that
new and more convenient route between
this city and San Francisco has been
opened, and intimates that it would be
well to compel the railroad company
to carry the mails over the longer
route, because it is subsidized. With
cut the least regard to the interests of
the California, public or to the extension of
the commerce Of the coast, he points out
that the building of the Southern Pacific
is liable to injure the business of the Gen.
trail Pacific, and thus to diminish the re.
ceipts paid to the Government under the
Thurman bill. Mr. French, of course, owes
no allegiance to the Pacific coast. He is
an officer of the Federal Government, and
it is his duty to guard the interests of his
Department The view he takes, how
ever, is undoubtedly identical with that
which will be taken by all who are con.
cerned in protecting national interests,
and here lies the significance of his re-
marks. Apparently the Federal view of
the situation would require the abandon
ment of the shorter and more convenient
routes, and of the entire Southern Pacific
system, lest the extension Of transporta-
ton facilities should endanger the Govern
ment securities and diminish the payments
into the sinking fund. The National Gov
ernment looks only to its position as
creditor, in fact, and it is jealous of every
thing which may affect its hold upon its
debtor.