The enterprise. [volume] (Wellington, Ohio) 188?-1899, 1889-10-02
AMERICAN RAILROADS.
Annual Report OF tn Commission
or :or the Past Year.
Condition of Roads in the Western
States Discussed at Ssme
Length.

Financial Standing and Needs OF subsi-
dlzed Corporations shown Up ami Rec
concentrations Made AS TO Prudent Leg.
islation.
WASHINGTON, Oct. LII. A. Taylor, Com
missioner Of RAILROADS., in his annual re-
port to Secretary Noble says that the past
year has not been prosperous one for the
rail- olds, especially In the West. 'In most
OF the agricultural States in the Mississippi
Valley and west Of it,n he says, "there
have been several successive years OF par
tial and in many sections almost total crop
failures. Continued droughts in some
places and excessive rains in others-re-
peated and destructive storms-swarms of
deyouring pests--all these have combined
TO destroy or lessen the products of the
SOIL. inevitably following these failures TO
agriculture has come general business de-
preston, and no branch of business has
suffered in greater degree than that Of
transportation
The Commissioner says thatrate wars are
In most cases devoid OF palllation or excuse
and are inaugurated without reasonable
cause. u do not agree" he says, with the
claim SO persistently made by railroad man
ayers, their organs and satellites that the
recent losses sustained in railroad business
are mainly due TO the restrictive laws which
OF late have been enacted by Congress and
In many OF the Western States" He CON
siders that there is surplus of railroad
mileage In many sections, and especially In
Kansas and Iowa, and that many Of the
roads in those States will not yield remuner-
adye dividends for some time TO come.
Taking up the question Of the Pacific rail
roads, Commissioner Taylor discusses the
best means OF securing TO the Government
the money the roads owe 1t and at the same
time so fixing the rates and time as not TO
cripple the railroads. 'Time is Of small i'm
portance compared with security in the ad-
justment Of other matters" says the Com
missioner. ut is very clear judgment that
there should be an extension Of time and
reduction in the rate of interest. 1 am not
thoroughly convinced that the end sought
can be best attained by the passage Of a
funding bill providing for regular fixed pay
ments. Such legislation should be enacted
as win best enable the companies 10 eventu-
ally discharge their indebtedness to the
Government
1t is apparent, he says, that the subsi-
died roads can not discharge their obliga-
tions TO the Government at maturity SEX
isting laws" he continues, "are wholly in
adequate 10 secure the payments Of the
debts due and shortly TO become due. It is
imperative that Congress provide some
measure Of relief II is my opinion that II
wntld ha xuiua N naa a ., oot ,,f,,i,o, ,ao
sonable extension Of time; reducing the
rate Of interest TO three or four per cent,
requiring that the earnings from all Gov
ernment transportation by the subsidized
companies or lines operated by them,
whether aided or unaided, should be ap-
piled TO the payment Of an interest or prin-
clpal due or TO become due within the fiscal
year in which the services might be rem
dered; prohibiting the payment Of any div
idends by either Of the subsidized COM
panies unless such company shall have paid
all interest on It's bonded debt--having a
lien prior to that OF the Government and
allmatured Indebtedness and interest then
due and payable on its debt 10 the United
States; and exacting the payment of such
percentage Of the gross earnings Of the sub
sidized lines as by careful estimates would
realize sums sufficient to pay accruing in
terest and raise sinking fund that would
meet the principal of the debts at their
maturity"
The Union Pacific railroad was on June
30, 1889, indebted TO the Government in the
amount Of $57,e09,72 The assets of the
road are 1904 rs; liabilities, S226 s26, ,159.
The Central Pacific road owed the Govern
ment on June 30, 1889, 81, ,256, ,734 The as
sets amounted on the same date TO S222, 757,-
362; liabilities $193, ,296, 1856. During the past
year there was net increase in liabilities
sf ST3l, ,S42.