Morris tribune., 1885-01-14
THE UNION PACIFIC.
REPORT OF THE GOVERNMENT Oi.
RECTORS ON ITS CONDITION..
They Recommend That Fixed Sum Be
Required of the Road Yearly In
stead of Percentage of lis
Net Earnings.

New YORK. Jan. l2.-The annual report
Of the government directors of the Union
Pacific Railway company was given out here
Friday night On June so, 1854, the floating
indebtedness was SIS, Ito, 020, to meet which
was, cash, 81, 1872 070; company's stock and
bonds s., or, S5S; sinking fund, 81, 600; bills
receivable, s2,91S, 419. This makes the net
debt 81, 977 900. In the statement Is the fol-
lowing:
- The company respectfully protests that the
investment of such Of the sinking fund for
the benefit of the government Tor creditors)
as has been accumulated is unjust to the
company, the fund not being SO invested a.
to earn the full measure of its ability II
properly invested. 1t tends therefore, In no
practical degree to relieve the debt OF ltS
staggering proportions it will have assumed
when the time arrives for its payment
If the present policy of a percentage upon
the net earnings and investment Of the
same III sinking fund Is to be pursued, ex-
perience having dictated that some vital es-
Sential is lacking to the successful working
OF the policy, some additional measure must
be adopted. The successful working Of the
policy preSupposes two things: The govern
ment securing the full and entire amount OF
It's proportion of net earnings and the invest
ment OF that amount so as to accumulate
with reasonable rapidity. But if the gov
eminent is to be reimbursed out or the net
earnings the government directors venture
the suggestion that in fact no department Of
the government will ever know what the net
earnings are, for it is practically impossible
to definitely arrive at what they are or may
be until some competent commissioner or
government directory is empowered by law
TO supervise continually and constantly the
actual concerns and operations OF the
company. The suggestion that seems,
from careful and as Intelligent as
possible survey Of the matter, the
&,>, ~
manently this whole question, and obyiate
all difficulties which surround it, IS that, in
stead of the present requirement Of the gov
eminent OF certain percentage Of the net
earnings, a fixed sum shall be agreed upon
which the company would be compelled to
pay at stated intervals toward the interest
and principal of its debt to the government
In fixing such stated sum the law-making
power can resolve upon just and
Intelligent figure, with or without con-
sultation with the company, keeping
in view the financial condition and abilities
of the company, and having due regard TO
the interest of the communities and Of the
commerce that will be affected. The govern
ment is now ia Re to face with the proposition
that it shall deal justly with this corporation
as it now finds it, and at the same time
justly with public and commercial interests.
The directors recommend the establishment
of national railroad commission.
sre44s - "A Word for the Railways.
CHICAGO, Jan. lathe Inter Ocean pub
fishes an article giving tables showing the
comparative rates charged by railways Of the
country for carrying grain and merchandise
from which it draws the following con-
illusions:
These figures, which are absolutely cor
rect, show that the reduction in rates on
merchandise since 1855 amounts to from Is
e. fo,, tr0 y>or Cor,t
for so miles, 20 to SO per cent for IS miles,
25 to IS per cent. for 100 miles, 80 to 81 per
cent. for 125 miles, 80 to IS per cent for $50
miles, So to 50 per cent for IT'S miles, and
80 to IS per cent for 200 miles. The reduc-
ton in rates on farm products, as will be
seen by consulting the table, amounts to
from 40 to 50 per cent. These figures furnish
the most complete answer to the so-called
,,anti-monopolist," by showing that trans
portation rates in Illinois and the west have
generally been reduced by larger per cent.
than even the decline in the price paid for
farm products. In 1878 the average price Of
wheat at Chicago was 81, II per bushel. Dur
ing 1854, however. the average price OF
wheat was something above so cents, the de-
cline in price being only Is per cent, against
reduction in transportation rates of from
40 to 50 per cent.
the honest producer want? The railroads
have obligations which must be promptly
met CT loss of property will ensue. The
railroad management Of the west have al
ways been careful Of the interests Of their
patrons. They have pursued no short sighted
policy in order to temporarily increase
their revenues, but recognizing that tksir
interest are identical with those Of the
country through which they run, tho
most liberal measures consistent with fair
ness to stockholders have been adopted. The
fact that the earnings Of none Of the rail-
Ici fho u1o "a
the money invested is the best evidence that
rates are not extortionate, and the steady re-
duction in these rates in the past is high
tribute to the wisdom and fairmindedness Of
the men who have in charge the transporta-
ton interests of the country.