Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1888-04-28
A REVIEW
OF THE UNITED STATES RAILWAY
COMMISSIONERS REPORT.
Condensed from Annual Report OF
the Central Pacific Railroad
Company, by Acting Presi-
dent Charles Croker.

ucnl SthEtCS SEOCkCEs
The motive that has suggested and the
spirit that has characterized many of the
important investigations carried on by COM
mittees of Congress or by commissions
created by that body, have so often been al
variance with what should be the purpose
of grave inquiry, that it is no wonder the
country expected the investigation of the
Pacific railroads to be like the others.
Usually starting out with a certain
theory, investigators have found no value
in facts that did not conform to it, and
therefore the results have been practically
worthless.
1t is not surprising, in view of the origin
OF this inquiry. that the country was pre-
pared to tind in its results only that which
would support the charge that the builders
of the Pacific roads had been faith.
less from the beginning and full
of guile. The Union Pacific people en-
deaYored to discount the effect of such q re-
port by admitting that their line was sur
yeged in sin and constructed in iniquity
but this they confessed for others and not
for them selves, since they are the neocracy
of the enterprise, recent in their identified
ton with It's operation and therefore able to
point positively clean finger OF scorn al
their predecessors.
Unlike the Union Pacific, the Central
Pacific IS still in control OF the survivors ot
the company of men who built it. Il is
not their fault, for when it was finished
they tried to sell it, but prudent financiers
snuboed investment in a property which
had faxed the credit of its builders almost
to exhaustion, and offered no prospect oil
paying profit within the next generation
and the stock in which found no takers in
5Ourse where mine needed only a name
and stock book to attract Investment and
be the cause of thousands experiencing the
pleasures of hope. So, singular amongst
the great constructions of the age. on this
continent, this remained in the hands OF
its builders and their record was unbroken
from the moving of the first
spade of earth to the NOV.
ing of the last train What faults there
were were theirs, and they had TO stand
the bTunt of burning inquiry that GOV.
cred quarter century Of such a business
career as few men survive to be quizzed
about.
A newspaper may daily say of a woman
She is chaste." and of a man He is hon.
est, and attract no attention. Ii is oui
trailties and not the lack of them that in
terest our neighbors therefore, Congress.
slonal commission appointed to see smoke
and ind fire under it should not have ex.
pected any more attention than has been
given To the non-scandaIouS part of its find
ings.
Indeed, one is surprised that the report
should not throughout justify the expecta-
tons of the people who suffer a chronic
suspicion that all great transactions with
the Government are necessarily infamous
The report of the Commission of Investi
CATION Is in eight volumes, ponderou.
mass of testimony indigestible to the gen
eral public and so unlike light reading tina
members of Congress will peruse it only
under penalty. 1t was understood to be-
unfavorable to the roads and so it wa.
searched for such references as fed the
appetite for sensation, and with these pIums
taken out, the pudding was left to be for
gotten.
Before it Is consigned to oblivion it is
well to see in what particulars it fails to
impeach the builders and owners of the
Central Pacific, for this IS the last Congress
slonal Commission that will ever investi-
gate them and II issued from conditions as
austerely hostile as will ever be in focus
again. The Accountant of the Commission
Mr.. Stevens, reports that on his arrival al
the company's headquarters in San Fran
cisco, he was assured BIZ President Stanford
inc the books and accounts of the corpora.
ton. and with his staff of seven assistants
he was occupied from June until October
IN such examination, and he says that the
company's Secretary Mr.. Miller heartily
fully and thoroughly extended complete
facilities for the inspection of the books
vouchers and accounts under bis control.
The engineer of the Commission with his
corps OF assistants, made an examination
N AfesI s.ff h
lated property and acknowledges the ex.
tension of every facility for that purpose
The Commission Itself spent month ia
san Francisco taking testimony and seek
information directly and indirectly, for
reports that 1t disregarded the rules OF
idence. II their legal status were defin-
aole the Commissioners might be called
Prosecutors striving to prove the charges
made against the builders and owners oil
the road. and their facilities were as ample
as could have been desired II is not often
that such hostile search covers its ground
SO thoroughly and is so little restrained by
the legal safeguards intended to preserve
the citizen from unreasonable search and
seizule And yet this exhaustive inquiry,
hostile rom its source and fed in its pro
gross by every rivulet of bitterness and
pad feeling generated in this State
Tor score of years, results i'll
no confirmation of the gross charges which
sctuaied 1t. Upon the charge that prior to
the Thurman Act the corporation failed in
its obligation to pay to the Government an
offset on the borrowed bonds of five Der
cent. of its net annual earnings, and that its
books were so kept as to conceal these earn
ln2S- the Commission. after three months
expert search of the books. reports:
The books Of The company are so kept as to
SNOW The net earnings of the aided portion. As
matter OF fact, the Commissioner of Railroads
mas state1 and settled these earnings for many
years past. and has had no difficulty in ascer-
tanning their amount.
There has never been diver ion of earnings
OF aided roads to less productive branches
through constructive mileage allowances or av-
erage mileage allowances between aided aud
non-aided roads, or parts OF roads
No evidence has been presented to the Com
misso on OF any discrimination of rates in favor
of uuaided as against aided roads
The evidence discoses that traffic has been
diverted in a great variety of instances from
the Cnlon Pacific and Central Pacific Railroads
to other lines AS illustration of such diver
Sions the commission refer to the following
Inc southern Pacific, the California Pacific and
the Or gon Short Line II would have been
possible u have carried the traffic which WAS
forwarded over the roads named by the Union
Pac fl and Central Paci1c route III the
judgment of the Com mission the controlling
motive which had led to this alteration in the
transit OF freight has been the question of cou-
Neulence and public advantage. II has lot
arisen from the intention to reduce the net
earrings applicable to the percentage due to
the United States. Ia the report of the Post
ma>ter-General it is stated that this same
diversion is pracsiced by has department, and
that he selects the best and quickest routes
because he thereby promotes public convent
ence- II appears to us that this cues.
zion of the diversion of traffic must be regI,-
lated by the interests and demands OF the
people who use the railro IDS Trade will
always find the easiest AID most natural chan
mel.
As to rebates, overcharges. pooling ar
engagements, etc, they state:
An overchsrge occurs when a freight bill
is enormously stated at n larger amount
than proper by reason OF overweight,
oyermeasurement or mistake in the rate
charged. The practice is 10 refund to the
parties gainst whom mistake has been made
the amount Of oyercharge, on proper voucher
rebate is an agreed reduction from the or.
diutry open rate II is adjusted III the same
way All overcharges, rebates aud pool bal
snces which form part Of the many millions of
dollars nlcl have nail bx a. 4