Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1888-01-05
CORPORATE CREEP
..b,s Disclosures Made in -
> p.port ofthe Subsidized Rail-
way Commission
p;rrs and Cliques That Have
Proved Upon the People
For Years.
r.. commissioners Report

an
ns a. and methods of railroads which
~, -e,siyed aid from the United States
AZ so- other purposes" the Preslden
~ 49, Messrs Robert L. Pattis0n o
FtUsylvspia. Z. Ellery Anderson OF New
:rd David I. Littler of Illinois
w. ;.siouers to carry on the investiga
Two reports have been submitted
W. .ba president, mriority report by
e. Anderson and Littler, and a min
~, report by Mr.. Pattlson.
''' THE MAJORITY REPORT.
The majority report opens with state
the methods pursued by the com
-;..;oners. showing the laborious nature
,5s work. and setting forth that owing
i tbs fact that none of the reports were
[ompleted before the month of November,
"a hat the final report and tables affect
f., tbe Union Pacific railway were not
lived until near the close of that
Imontb. it was impossible to make any
lyrical examination of the results reach
| nv the accountants and inspecting
&.ryjneer of the commission. The com
|wi.son itself examined the directors and
rHcers of the respective roads and all
witnesses whom they judged possessed
| knowledge of the subject matter of the
Erys.tigation. They subdivided the re.
,,,t into three parts. The first part re-
ses to the present condition of the com
ZrsDies, their relations with the United
kntes, and the remedial measures to be
Ilopted the second part reviews the
Eaancial operations of the companies,
Ind the third part contains answers to
h. various interrogations contained in
| is bill under which the commission was
constituted,
The Union Pacific railway is first con
Idsred its total mileage, exclusive of
Branches, being stated at 1,sl5.17 miles
|1cuding railways formerly known as the
|Esnsas Pacific and Denver Pacific, while
Bio total mileage of the connecting
branches, according to the company's re-
bort for 1856, is 2,7G1.93 miles.
TIE TOTAL FUNDED DEBT
cltae Union Pacific company Dec. 81,
E;S6, was $Sl, 1853, 12750, exclusive of its
obligation to the United States, of which
k53j52, 600 was prior to the United states
Esiutory lien. The present balance of
obligations of the Union Pacific road to
Ehs government is $50,17l, 1892 SO.
To secure the payment of this sum
cHd interest the commission offer q bill
providing for q mortgage upon which
fne Union Pacific company: for the first
isnyears, will pay the sum of $4,77G,495
annually this being 3 per cent. on the
present worth OF the debt to the govern
nent and IL of l per cent. o, the out |
handing bonds and, after that an ANN
D payment of S2,O30,2S0. The commits
Son show that the sinking fund provided |
b The Thurman act of 1878 is not as |
s'se as 1t was expected it would become |
wen the act was passed owing to de-
l'sass IN the net earnings of the road ana |
.as failure Of the fund TO earn compound |
interest at the rate of per cent. as was
ipected, and the commission therefore
0lc.1des that the road cannot pay its
lleotedness to the government at matur-
Y under the present laws relating to
be subject
THE HISTORY
tle Union Pacific railway, as developed |
a lae second part OF the report, will, it is
lamed, show that its assets have been
former years largely misappliod, and
-a, u.s. financial ability to meet its Just
O"s4.on' has been largely impaired by
Y ac.'on Of men who held fdiciary re-
',.oA' 10 the corpCratlon.n
Ioe commission refers TO the decision
pug supreme court which held that the
O'5i1henl could not of its own motion
: through acts Of congress successfully
~. l's any suit or proceeding by when
.--.. OF this corporation, who had APP
.ys'l''ed us assets to their own use,
ny, n pc mpeiled TO refund the same
''e' 10 ihe corporation itself or TO ap-
y d'e value of such converted assets to
! 'a1''IAction Of the claims of the gov.
' ---,7A.' aud without intending to criti-
4 l .-ei' decision, which is the Law of
+. ,aul, We cannot forbear saying that
..'-g'usIon reached was great pub
-''9'o'Vune 1t seems to leave the
~ complained of without any efici-
,;. .ssnedy' The wrong was done to the ,
80 ~. 9la'es as the creditor of the com
~. Inc court does lot seem TO have
eco ..-,.su mat the loan made by the /,
w.. .''- -It to the company was, in
go measure made on the
OoAfANYs PROMISE TO PAY
......'ll81ished from the security taken
/, p..a'-a...utoTy lien and that the value of ]
III mise % Pay was substantiallv !
,ar,.. p! 'he acts complained of. The :
Z. ,4.'' NH'eA the coart failed to recog- 4
. c. .'v enormously different resnlt to I
.lv III ,'l'4sn' arising from the duan. G
.,5. -s51 state Of the CORPORATION can c
l-. A. ,-... ON The remark made by the c
n FAss ol'' After referring 10 the /
1.,a.. appropriate one-haIf of the t
lst as. ..'ou service and . per cent. of a
gBol|- --1s7' the court says:-It is il
sr1-... Unreasonable TO suggest tibet {
1rsr.-.5 which the company NAV he !,
ny. -. % pay annually under those 4
te15 .a '---s v III be sufficient, az a sink "
sr31-. pay the entire debt. princi. d
Ne Cr,--'s5.s' before it falls due il
.i1t-.l.,,' have therefore jnser. n
L 30. ON which We recommend = sec +
aes5r rs 'Ae Union Pacific Railway e
5..r ~, sc 7pting the terms of the h
es7se.os va red to consent that rs 10 q,
Inst ssg al,'on existing or to'szist o
be CONF 'ee' director, or officers il
Ia en-. ,..-,- u tor any Cause whatsoev. n,
ae De-. r-1s snail, on the application a
s.a,s. le1t Of Justice of the Init +,
esz3 'iils any suit or take anv i
q 5ss-t.. sAat snail be dlreotad ~ 3.
p-0c-s5 /, aud prosecute such snit "
q sql.e.a-'1., - oAder its direction, to 5,