Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1888-04-14

The Act of March s, 1887, charged the Pacific
Railroad Commission TO ascertain and report
the average cost per annum OF Government
transportation in the region now trayersed by
the Pacific Railroad, between the year 1850 and
the completion of the roads, and also the aver
age cost per annum since such completion.
The Commission reports, at page l26, that be-
fore the completion of the Pacific railways the
cost OF transportation
WAS VERY MANY TIMES.
Greater than il now is, and refers to the reports
of the War Department and TO the evidence
found in the record before YOU. The testimony
upon this point of inquiry was very ycluminous,
but satisfactory and unanswerable, resting las
II did in most cases. upon documentary evil
dence. From 1t it appears that the average cost
per annum for Government transporI alton in
the regions mentioned between the year 1850
and the date of the completion of the roads eX-
ceeded IS, 10000 That since the ir completion
from 1870 10 1885 inclusive, the total cost OF
Government transportation over the Central and
Union Pacific roads has been less than S2l,-
O0OO1, making an annual average cost of but
600 from 1870 to 1885 inclusive. The trans
pOrtation Of Government freight over the Cen
trail Pacific amounted TO 81 ,O9s.00o. The cost of
the same service at the rates paid before 1870
would have been SO. al 600.
From 1870 TO 1888, inclusive, the cost Of trans
porSatlon over the Union Pacific Railroad
was Sf6i2,0Oo, The cost of the same service at
rates prior to 1870 would have been SO, 10000.
The GOVERNMENTS SAVING
For ihese sixteen years, from 1870 TO 1885, inelr-
sive, in transportation by reason of the compile
ton of the Central and Union Pacific even IL
We consider that the business would have been
no greater in the sixteen years in question than
IL the preceding years, amounts To the enonn-
Gus sum of SOS, $4,000. Thatlthese figures are
correct appears not only from the testimony in
the record. but from the history of the Pacific
Railroad. compiled by Colonel o. NJ. Poe of the
United States Engineers, and printed in the last
report made by General sherman as General of
the Army. Colonel Poes estimate after thor
ough review of the subject. is that the relative
cost of railway and per ton transportation of
grain alone used by the army on the plains i'll
1860 was over $50 0,OCO. The saving in pGsSeu-
ger transportation by the construction of the
railroad was in a greater ratio than in the case
of freight, but applying to such transportation
the same proportion of cost as is applied to the
movement of freight it will be found that il
cost the Government of the United States for
transportation of troops and passengers from
1870 to 1885, inclusive on the Central and Union
Pacific Railroads, 81 ,6l6,000. In the absence of
railroads the same service would have cost over
$40 900 COO, making a saving in this item to the
Government of the United States of S44, 100000.
Aggregating the two items of savings to the
Government by the completion of these roads,
the amount in sixteen years was in round num-
bers 5000 900.
A still greater saving cannot be estimated in
money.
INDIAN WARS
Have been practically ended by the construc-
ton of these roads. The amounts formerly paid
for the support of troops engaged in the Indian
wars varied from time TO time but the enormous
expenditure III that behalf is apparent from the
report of the Pacific Railroad Committee to the
Senate submitted February 10, 1869 in which it
was stated that Indian wars for the thirty seven
years then next past had cost the nation &c, 900
lives and $3.50 100000 or about 5000, GOO year
Inthe years 1861 and 1853 the QuaTtermasters De-
pa1tment spent S2S57 600 in military services
against the Indians. The report of the Secre-
tary of War for 1885 Sc volume l. page ll3) states
the expense for the year ending June 50,
1885. of transportation of military stores alone
westward across the plains al SC, 3SS, 000. Using
the last account as representing the annual cost
of freight transportation, which the Govern
ment would have been obliged to pay from 1859
to 1885 had not the railroads been built, and the
result is as follows:
THE EXPENSE OF TRANSPORTATION
For sixteen years would have been s102, 221, 702
The charges made by the railroad company for
freight transportation during the same interval
amounted to -, 40, 753, showing a saving to the
Government OF SOC, 4s09i9. The annual amount
paid for carrying the mails across the plains be-
fore the completion of the railroad was S175, 600
The distance carried was ,095 miles and the aver
age daily weight was 1000 pounds, being at the
rate of 81 ,59S per mile per annum. During this
time the heaviest portion of the mails were trans
ported via Panama. For the sixteen and halt
years commencing January l. 1870, and ending
December 81, 1857, the total amount allowed to
the Central and Union Pacific roads for the
transportation of United States mails was an
average of but $40, Coz, 507, or annual average
of S6i2,SlS The average daily weight of the
mails carried on the Central Pacific steadily iu-
creased from 5.30S pounds in 1870 to lS,754
pounds daily in 1855. On the Union Pacific the
average daily weight increased from GS76
pounds in 1870 to % 800 pounds in 1885. II will
readily he seen that ON the transportation of
mails alone, without taking into the estimate
the amount paid for transportation by way of
the isthmus the amount paid was $50. :64 273
Summing up the three items of transportation
OF freight, troops and mails the result to Jan
uary, 1886, shows the transportation G argos of
the Central and Union Pacific Railroads 10 have
been for all these purposes, $40 963 So %; that
the same services ct the rate paid prior to the
construction of the Pacific roads would have
been Sl60,5ll ,05i AZ. making n saving TO the
United States i'll sixteen years of the enormous
sum of Sl39,34711l 70. Had the Pacific Rail
road Commission answered the Question submit
ted TO them by the Act Of Congress. that answer
must have been that the savings amounted to
about Sl40000,000.
we cited the Acts of Congress, ls62-lS64.
and the debates when these Acts were under
consideration, 70 prove, and they do prove that
the United states never expected its loan, priu-
cipal or interest, TO be repaid by the Companies.
These Acts and the debates prove hat AZ the
time the roads were constructed the Govern
ment was, in round numbers. expanding annu-
ally for transportation on the plains about
.. D00.Cu0 Congress provided that in the future
this transportation should be done by the rail
road companies, and the debates show that al
though the rates might be reduced Yet the vol
ume of business, intending the volume of the
mails. would increase, so that the compensation
would never fall below 81, 500,G50 per annum.
Congress provided that of this amount oue-half
should be retained by the Government and the
other half should go into the treasury Of the
company. Had this been dOne as in equity the
United States was bound 10 do, then the account
at this date would have been as follows, eXciu-
siye OF The per cent. aud exclusive OF interest,
both large items: Charges for Government
transportation for twenty years, sl5000l,o0U, of
of which the company would have received
SO eco 600 and the United States S,5,000,0 600 AT
the maturity of the Government bonds the
an Thp 70 Il
have been inclusive of interest computed with
ont stops, S2lS 10000, or more than enough to
dischar1e the Government bonds, while the
companies would have received and had for
their own use sum equal in amount While
the Government has not given the eompensa-
ton and the debt will not be extinguished in
coin, it has in equity been
ExTINGUIsHED BY SERVICES.
The Government has received all it bargained
for, and more, too. The companies are the only
losers. Had the contract between the companies
been carried out Us both parties understood il ut
the time it was made, not only would the debt
have been paid as it was intended by Congress
it should be paid, but the com paui2s would have
been enriched. The contract has not been so
carried out but the result is that by the failure
OF the Government TO perform It's part of this
contract It has made great gain and the com
panies have suffered n corresponding loss.
Congress recognized what the Commission
seem to have overlooked-that by previous acts
of the Government the business which these
roads had the right TO expect bad been diverted
from them that by reason OF various Acts OF
Congress the values of their property had
shrunk; that it was only fair TO inquire what
beuetiis the people and the Government had re-
ceived, in order that when Congress e4me to
consider the whole matter it might determine
whether or not in justice, i'll equity, the United
States hould bear part of the loss. That these
additional facilities were very great cannot be
questioned
In regard to the cost of construction, the testi-
mony taken by the Commission and now before
you contains estimates, made by competent,
disiuterested persons, as well as estimates made
by parties interested. The lowest estimates
made are that the roads cost not less than 40 per
cent. more than they would have cost had they
while the highest estimates made the difference
fully one-half Mr.. Davis, disnterested party.
n railroad builder of exFerient e, testifleS that
the Central Pacific rad could be built now for
one-half what it cost to construct it at the time
it was built.
The Commissioners were also directed to in
quire whether or not the Pacific railroads were
completed in less time than was allowed by
law, and if so, III how much less time, and If
the
UNITED STATES WAS BENEFITED
Thereby They found page 120 that the road
was completed about seven years before the
time required by law and that the early com
pletion of the roads was doubtless of great
benefit 10 the United States. 1t is conclusively
shown in the testimony that the United States
was directly benefited in cash to the extent of
81, 600.
THE COMMISSION
Was also charged to inquire and report If the
United States have contracts with branch roads
controlled by either of said Pacific roads for
carrying United States mails. and if So what
service has been performed by them what