The Abilene reflector. [volume] (Abilene, Kan.) 1883-1888, 1888-01-05
PACIFIC RAILROADS.
Reports Of the Investigating Com
mission-The Majority Report
Favorable.
The Minority Radically Opposed to Any
Compromise and Recommending
Forfeiture and Sale.
Liability Of Jay Gould and Russell Sage
Being Indicted For Robbing the Z. P.
Bondholders.

WASHINGTON, Jan. The majority and
| minority reports OF the Pacific Railroads
Commission submitted some weeks ago tc
the President were given to the public yes
terdsy. The majority report recommend.
moderate measures and legisl alton for the
relief Of the roads, while Governor Patti
son insists that the roads should be pun
ished by a forfeiture Of charters and imme.
date sales.
The majority 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 fret that none of the reports were
completed before the month Of November,
and that the final report and tables affecting
the Union Pacific railway were not received
until near the close Of that month it was i'm
possible to make any critical examination
OF the result reached By the accountants
and inspecting engineer Of the Commission.
The Union Pacific railway is first consid.
cred, its total mileage, exclusive Of Breaches,
being stated at 1,Sl5.l7 miles, including
railways formerly known as the Kansas
Pacific and Denver Pacific, while the total
mileage Of the connecting branches, &C.
cording to the company's report for 1885, is
2,76l.93 miles. 1t is explained 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 at point 3.97 miles west Of Coun-
oil Bluffs to point FIVE miles west OF Og-
den, Utah; on the Kansas Pacific from a
point half o mile west of Kansas City
Mo-, to point distant therefrom westerly
$685. "a miles. The original location of the
Kansas Pacific was altered to allow it to
extend directly to Denver instead OF in
tersecting the Union Pacific at the
10th meridian, but 1t was entitled
only to the same amount of bonds
that it would have been allowed uud er
the original location. The Commissioners
find that these roads ''are fully provided
with terminal facilities, sldetracks, station
houses and railway equipments, and, with
the exception Of the shops, machines and
tools at Omaha, represent q well built and
well equipped property, which Is fully able
to discharge all the services that may be
required Of IL.
THE mileage Of the branches exceeds
the mileage Of man road. The Commission
has taken great deal OF evidence relating
to their cost, their operation and their ef-
feet on the system. The almost unanimous
voice of all the witnesses examined by US
declares that the branch roads add largely
to tho earning power of the Union Pacific
railway. Many Of them go so far as to as
sert that without these feeders the Union
Pacific would be bankrupted in few
years.
"The minority Commissioner insists that
interest on the cost of these branches and
on some portion of the cost of the main
line must be deducted from the net earn
ings, direct and indirect, Of the branches
before it can be concluded that they are a
benefit and that they increase the earnings
Of the main railroad. But this argument
tenders false issue. The branches exist,
the money spent in their purchase or con-
struction can not be reclaimed, and the
practical question is whether their opera
ton, irrespective Of their cost, is or is not
an advantage. The Union Pacific railway
is itself the holder Of large majority Of
their bonds and could effect no important
saving Of interest payments by discontinue
ing them. But as matter OF fact the in
vestmeut in branch lines. taken in its
entirety, does pay large surplus. In
the table above referred to the inter
est on all the bonds is stated. 1t amounts
to &, 579, 39J, and after deducting this
amount from the direct and indirectin come,
q, 723, 1914. 49, the balance remaining is e.
1884 ISL. The minority Commissioner
claims that there are certain sums due for
money advanced to these branches for
which no bonds have been issued and that
interest on these sums should be added to
the interest on the bonds. Thi. amount Is
S. 6Y7, 67O.44 (See Union Pacific balance
sheet, page 81 of the company's report for
1861 For the purpose of testing the re-
suit Of the investment this is dou btless cor
rect, but the amount of the interest will
not exceed $3.50, 200, and is not sufficient to
affect the result"
The majority report continues in detail to
fully examine the condition and financial |
history of all the Pacific roads, including |
the Union Pacific, Central Pacific, Central !
branch and Sioux City branch. 1t recon-
nends a recognition of the efforts of Mr.. |
Adams as president of the Union Pacific TO
ntrodu e buslness-lixe managem ent and a |
relief of the burdensome restrictions which /
prevent the roads protection Of itself as
Governor Pattison takes radical ground.
BE recites all the corfu ption and evils CO.
Incident with the early history Of the
'oads, and recommends a forfeiture of
charters, foreclosure Of all mortgages and
sale under the hammer. He assails the
company bitterly and says they should be
punished as moral example.
JAY GOULD AND RUSSELL SAGE.
NEW YORK, Jan. 1.-District Attorney
dartine yesterday filei the following MEM
randum in the matter of the charges
gainst Jay Gould and Russell Sage by the
OF the Kansas Pacific rail-
DAD: This is an application to present to
he grand jury a charge OF larceny against
ay Gould and Russell Sage unter section
4 Of the penal code. In my opinion the
cts with the commission OF which the de-
endsnts stand charged constitute crime.
| possible obstacle to a successful
rosecutIon Of the persons complained
Z is tho statute Of limitations.
let there are strong reasons for
elieving that this obstacle is not
The statue under which -,
is sought to prosecute may be so con-
tructed as to enabl Q the people to pro- /.
eed, notwithstanding the statute Of lsmi-
atoms, and such construction would have
luch support in reason and common sense.
he question is SO close and the interests
lvolyed here, as well of the people as Of c
he defendants, are so important It seems l
roper to leave the determination Of this 9
uestion OF law to the courts, and in order 4
effect this result the facts should be laid o
.fore the GRAND iury and il y,roven an q