Los Angeles daily herald. [microfilm reel] (Los Angeles [Calif.]) 1884-1890, 1889-10-01
THE ROADS AND THE LAW
The Railroads Responsible
For the Dizziness in Traffic.
TOO MANY RUINUUS RATE WARS.
Western Roads Obstrepereus About
Land Grants-COmmissiOner
TaylOr's Report.

Western Roads Obstrepereus About
Land Grants-COmmissi0
Taylor's Report.
WASHINGTON, September 30.-Horace
A. Taylor, Commissioner OF Railroads,
has made his annual report to the Sec
Rotary of the Interior. He reviews the
railroad situation and rate wars of the
past year. He declares that the un.
favorable railroad situation is not due to
the Interstate law, as claimed, but to
those unjustifisble rate wars and the un-
necessary extension of new lines. He
says number of railroads which re-
ceived land grants from States refuse to
report to him, for the reason that such
grants were made by the respective
States in which the roads were located,
and not by the United States, and assert
therefore that they do not come within
the language of the act of Congress
creating this bureau and defining it's
powers.
"The position taken by those COM
psnies," SAYS the Commissioner, "would
seem to be technical and evssive. The
lands were owned by the United States
and granted by acts of Congress to the
States for the sole purpose of aiding the
panies received the full benefits of the
grants and should be compelled to re-
port"
He refers the matter to the Secretary
Of the Interior for judicial action.
The Commissioner says there had been
no inspections and no examinations of
the books and accounts of the railroads
subject to the supervision of his bureau,
made for the current year covered by
this report, previous to his appointment
as Commissioner July II, 1888. He is
therefore unable to make his report ss
full and complete as it otherwise might
be. Since his appointment, however, an
examination of the accounts of several
railroads in which the Government has
pecuniary interest has been made.
STANDING OF THE PACIFIC ROADS.
The total liabilities of the Union Pacific
to the Government, June 80, 1889, were
SOL 1853, 1872. The excess of interest paid
by the United States over all credits
amounts to 81, 730,230. The total lisbil-
ity of the company was 1926, 52e, 1853; the
assets amounted to $275, 1904, 723.
The liability of the Central Pacific to
excess of interest paid by the United
States over credits amounts to $24, 4O1, :
O54. The total debt of the company was
$125 1896, 1875, and the capital stock, $685.
100000. The assets amounted to $222,-
1862. There was net decrease in
assets during the year of 1892 1886.
The sinking fund of the Union and
Central Pacific companies held by the
Secretary of the Treasury amounted to
$13 .514, 604.
The Sioux City and Pacific railroad
received bonds from the United States
amounting to $1.62S, 1920 to aid in the
construction of 1917 miles. The inter
est paid by tho United States amounts to
$1,000, 492, and there has been retained
by the Treasury on account of transport
tation services, $153 500, leaving the ag-
gregate amount due the Government,
$685., 1903. The excess of interest paid
by the United States over credit was
$1,S96,9S3
The subsidiary portion of the Central
branch of the Union Pacific received
bonds to the amount of 81 100000. Its
aggregate debt to the Government at tn 9
end of the fiscal year amounted to So, 1874 ),
1852. The excess of interest paid over
credits amounted to 81 ,734, 1872.
THE EVIL OF RATE WARS.
The Commissioner discusses the rail
road situation in the West and refers to
the ruinous rate wars, etc. He says: "The
unparalleled development Of the vast re
sources of the Western States and Terri
tories attracted capital there and the
railroads opened inviting fields to in
vestors. As a result railroad build
ing has been carried far in ad
vance Of the needs of the country
With the opening of nearly every
through line new complications have
arisen, and competition has been stimuli
ated to the point of annihilating profits
and often producing ruinous losses. Rate
wars are in many, if not most cases
devoid of palliation or excuse, inaug
urated without reasonable cause anG
vindictively prosecuted with utter disre
gard of their disastrous effects upon tn,
interests of the companies engaged and
the business of the public. The,
destroy or imperil the value of rail
road securities, impose unjust burdens
upon the commerce OF competing sec
tions, prevent stability in business ant
render the profits of the producer ant
trader alike uncertain.
RAILROAD LEGISLATION.
CT do not agree with the claim so per
sistently made by railroad manager
and their organs and satellitel
that the recent losses sustained
in railroad business, are mainly
due to the restrictive laws whicl
of late have been enacted by Congress
and in many of the Western States. Il
some States, notably Iowa, it is undoubt
eddy true that laws have been enforced
which are unjust to the rail
roads and injurious to public interests
and which ought to be modified O
repealed. But most of the Legislation
for the regulation of railway traffi,
within the States, has been wisely con
SENTATIVE, and was assuredly demande,
for the protection Of the public against un
Just charges and Determinations in locs
trade, as was the Interstate Commerc
law to protect commerce between States
Both the interests of the railroads an
public, says the Commissioner, suffer fron
the fact that railroad managers devot