Los Angeles daily herald., 1888-01-09
The Minority Report.

The Minority Report.
The minority report presented to
Congress by the Commission on the
Pacific Railroads bears rather more
hardly on the corporations in ques-
tion than does that presented by the
majority OF the board. Ex-Governor
Pattison of Pennsylvania presented
this latter view Of the question. The
paper first goes into the history OF the
subsidized roads and shows how six
companies were aided by government
bonds to the amount of $64 $685. ,512.
These all started at five points on the
Missouri river and were intended to
open communication with the shores
of the Pacific. In thirty years the
Government has paid on these
bonds $1l4, ,261, ,247 in interest. The
roads had land grants aggregating
26,O00 900 acres on which they have
realized $50, ,427 ,2l0, with $26, 600, 600,
worth OF land still unsold. From
other sources the companies had
$3,07O,S77, and they are estimated to
have been benefited to the fur
ther extent OF $199, 700, $50 by the use
of the Governments annual advan ces
of 1857, 400. This part OF the report
thus concludes:
BY adding the amounts together,
the Commissioner calculates that the
total aid extended to the six companies
was as follows: Union Pacific and
Kansas Pacific, $241, ,696, 7SS.07; Cen
trail Branch, $10,373,173.22; Sioux
City and Pacific, $40 ,04S, ,425 ,65; Cen
trail Pacific and Western Pacific, $780,
Gil ,0s3.6o. Total, $447, ,729,470.54.
Inreturn for these advantages Con-
gress enacted that the companies
should bind themselves to have their
stock fully paid in cash. They should
build first class roads; they should
carry for the Government at reason
able rates, not exceeding the amount
paid by private PARTIES for the same
kind of service; they would operate
the lines OF the Pacific system as one
connected continuous line, afording
each to the other roads equal facilities
as to rates, time and transportation,
and convey telegraphic messages upon
equal terms for all persons. They
were also required to make sworn an
nual reports showing the amount OF
stock actually paid in and informa-
tion relating to their financial oper-
ations.
In a table entitled "Cost and Capt.
talization" the Commissioner says
''The six roads were built for less than
$96, 900 900, yet bonds and stock were
issued for $26S, 1902 ,462, as follows:
Union Pacific $3e, 1924 900 $io9,s14,s12
Kansas Pacific, 1Il,sO0,0o0 25,e2S,250
siauT ssntrai cjty bTanenj snd 2'7SlS47 100000
Pacifc "s ..A aAD 100000 5,4o7,72o
Central Pacific. 36OOOO0Oi ,o,oS,coo
Western Pacific. 4,00O,0005 i'ooo
Total $96,955,4l7 $26sao2, ,462
The report then proceeds to ar
raign the roads for breaking each and
every part OF their contracts with the
Government, Quoting again from the
report We have this.
They increased the cost OF living.
They laid proprietary claim to the
traffic OF large sections OF the country.
They constituted themselves the
arbiters OF trade. They attempted to
dictate the channels that trade should
follow and to fix rates OF transporta-
tion that were extortionate. They
Disseminated between individuals,
between localities and between arti-
cles. They favored particular indi-
viduals and companies. They de-
stroyed possible competitors and they
bHilt up particular localities to the
injury Of other localities, until matters
had reached such pass that no man
dared engage in any businessin which
transportation largely entered without
first soliciting and obtaining the per-
mission OF railroad manager. They
departed from their legitimate sphere
as common carriers and engaged in
mining articles for transportation over
their own lines. They exerted
&arorism over merchants and over
communities, particularly in election
contests.
Then follows statements to show
that the Government has been grossly
and unfairly treated by the roads.
For services rendered the United
States, the report claims to show over.
charges by the Union Pacific amount
ing to s802, ,4o7, and by the Central
Pacific to $167,558. By erroneous re-
ports, it claims, the Government has
been further defrauded, and the total
amount OF such frauds is put at $S ,0O0,-
900, but no specifications are given for
this sum. It is charged that the di.
rectors OF the Central Pacific have
to themselves over $142, ,000, 900
out Of the road, and that they have
built and leased to themselves 1171 |
miles OF adjunct lines Within
Efteen months 103 mics are stated to