The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-01-07
PACIFIC RAILROADS.
COMPREHENSIVE SYNOPSIS OF THE
COMMISSIONS REPORT.
Tables Showing the Indebtedness OF
the Different Roads to the United
States Mr.. Patterson Makes Mi
nority Report.

WASHINGTON, Jan. 6.-Under the act |
OF Congress approved March 3, 1887, en-
titled: "An act authorizing an investiga-
ton OF the books accounts and methods
of railroads which have received aid from
the United States, and for other pur-
poses" the President appointed Messrs
Robert f. Pattson of Pennsylvania, L.
Ellery Anderson OF New York, and David
Il. Littler of Illinois, commissioners to
carry on the investigation. Two reports
have been submitted TO the President, a
majority report by Messrs. Anderson and
Litter, and minority report by MIR Pat
tison.
THE MAJORITY REPORT.
The minority report opens with q state
ment Of the methods pursued by the COM
missioners, showing the laborious nature
OF the work, and setting forth that owing
TO the fact that none OF the reports was
completed before the month OF November,
and that the final report and tables Affect
ing the Union Pacific railway were not
received until near the close OF that month.
1t was impossible to make any critical ex-
animation Of the results reached by the
accountants and inspecting engineer OF the
commission. These accountants were
Richard f. Stevens and William CAL
houn, the engineer being Col. Richard II.
Morgan, ir. The commission itself exam
ined the directors and officers OF the re-
spective roads and all witnesses whom
they Judged possessed of knowledge OF the
subject matter OF the investigation. They
subdivide the report into three parts,
The irst part relates to the present condi-
ton OF the companies, their relations with
the United States and the remedial meas
ures TO be adopted; the second part re-
views the financial operations of the COM
panies and the third part contains an
swers TO tho various interrogations con-
tanned in the bill under which the COM
mission WIS constituted.
The Union Pacific railway Is first con-
sidercd. its total mileage, exclusive Of
branches, being stated at l,Sl5.l7 miles,
including railways formerly known rs the
Kansas Pacific and the Denver Pacific,
while the total mileage OF the connecting
branches, according 10 the company's re-
port Tor 1886, is 2,76l.93 miles. II is ex-
planned that the United States subsidy
bonds did not apply TO the entire lengths
OF these roads. On the Union Pacific they
were issued from Omaha 90 a point 3.97
miles west Of Council Bluffs TO a point five
miles west OF Ogden, U. T.; on the Kansas
Pacific, from a point half a mile west OF
Kansas City. Mo, 20 point distant there
from westerly 1884 miles. The original
location Of the Kansas Pacific was altered
TO allow il TO extend directly TO Denver
a, instead Of intersecting the Union Pacific
at the Tooth meridian, but Il was entitled
only io the same amount OF bonds that il
would have been allowed under the
original location. The commissioners find
that these roads are fully provided with
terminal facilities, side tracks, station
houses and railway equipments, and, with
the exception Of the shops, machines and
tools at Omaha, represent well built and
well equipped property which Is fully able
TO Discharge all the services that may be
required Of il.
INDEBTEDNESS or THE UNION PACIFIC.
The indebtedness of the Union Pacific
Railway company 10 the United States, a.
existing today, is substantially rs follows
The Union Pacific nail.
The Ksnsas Pacific nail.
The Unon Pacific nail.
rond. Interest accrued to
not duc'.......:.,.........r a2,Oo.SnSs
Inc khieNh Fhl
ruad. Interest accrued 10
not s.''..........,:,. 75CsilS Oe-5as l69Cs
The amount IN United
stales bonds aud inter
est account for both
oompSnics is..............-si5.iio soiN
The amount Ia sinking
GSTi, ISL is'.'..-'......... 77sLo'is,-arLs7s:
FL that the present bal.
anCc Of ohlmtinm 81
way l. ...........'...... soi7ip E;
This amount should not be confounde,
with the present value Of the debt, for tn
reason that the United States Is under In
obligation Of continuing the payment OF
per cent. on the outstanding subsidizc
bonds until their maturity, and the con
pany Is liable 10 refund such payments .
the maturity Of the bonds.
The principal Of debt Of
Union Pacific and Kan.
49, Pacific h.....-........t ~ All,ll2 ~
Add NO I'ef cent. Interest. GAl,ll "
Toiaidcbt atmaiuIity sc,oo.CS3
Deduct amount 10 credit
Oi both companies IN
r>ud and interest ac-
gsouni. November /. iss7 is.5Dsoi
Balance At maturity Of
bonds NiNHff'h
Tho average date Of the maturity Of Il
debt oihoth companies is July 10, 1897.
The approximate present value Of s7s'
ae,M %. discounted al per cent -, ..,
pSGas. amounts in sinking iand... Ii5ios
Prczent
This RESULTS only intended as an O
Proclamation 20 explain the operation
the bills herewith submitted, aud will,
course be altered II actually applied at u
date named in those bills.
The requirements under the proyisio
of the mortgage proposed by the b
would he as follows, for the iirst ten veal
Time pcr cent Of 30 ss5 600 .........-s 81 "a 10
Onshalf Of per cent Of outstanding
bOnils INN
Total q. ;TS 49,
And after the expiration Of ten yes
the annual requirement would be s2,OJ'
go.
Tables received from Prof. L. II. Ellio
the government actuary, are here insert
In the eport, showing the condition
the sinking funds Of the bond-aided m
road companies" on November 1887, a
showing the present worth Of their
spcctiyc debts Ms Of July |, 1883, y the SIN
ing fund bonds being valued nj SILL
$50 - II Is asserted that u was expect
this sinking fund, which accrued from
operation Of the Thurman act Of May, Is
would reach much larger proportions.
failure 20 do 10 being mainly ascribed
the very large decrease in the net earnif