The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1889-10-01
REFUSED To SHOW UP
Railroad Companies Seek to Eyads nak-
Ing 4 Report to tho Government.
The Technicality That rh~y Ss~ccived
Land Grants From tine states and
Not tine Nation-centra1 and
Union Pacific Figurrs.

wAsHINcroN, Sept. 3O.-Railroad Conn
missioner Taylor, I'm his annual report,
says: Several land grant railroad com
panies decline To report for the reason
that such grants were made my the ne
sI,ectivc states i'm which the roads are lo-
Gated and not by the United States and AS
sert therefore that they do not come within
the language of congress creating this bu-
reau and defining it's powers. The po-
sition taken by these companies would
seem to he technical and evasive. The
lands were owned ny the United States
and were granted by acts OF congress- to
the states for the sole purpose Of aiding
i'm the construction OF the railroad. The
companies received the full benefit of the
grants, The matter was referred to the
secretary of the interior for judicial act
ion. The commissioner says. there have
been NO inspections and no examinations
of the books and accounts OF railroads
subject to 1.-The supervision of his
bureau. during the current year
commissioner July IL, 1859. He is there
fore unable to make the report as full
and complete as il otherwise might have
an Examination OF several railroads in
which the government has u pecuniary
interest has been made.
to the government June ID, 1889, was
S51 ,269, ,7S2; the excess of interest paid by
the United States over all credits AMOUNTS
amounted to Sa71,SO4, IA. The liability of
s wa. s la; saesss Of int interest paid by
The total debt of the company was $780,
The assets amounted to S22,S75,-
7ss, which was a. net decrease in
the assets during the year Of s7s2. .sa5.
trail Pacific companies delivered by the
secretary OF the treasury amount to Sl3,-
sl4:Soa: The Sioux City "a, Pacific ;.;t railroad
amounting to 81 ,62S, I'D To aid in the con-
struction of 1917 miles. The interest
O5O, ,492, and there have been retained by
the treasury on account of transportation
services S153, ,509' leaving the aggregate
The excess of interest paid by the United
States over credits 81 .S96 ,9S3. The
subsidized portion of the Central branch
of the Union Pacific received in bonds ST.
100000. The aggregate debt to the gov
ernment at the end of the fiscal year
AMOUNTS ;s to Xs,!; ;7ss; ~ . sxcess of interest
Most of the Legislation FOR regulating
railway traffic within the state has been
s,ircoiiy demanded for the protection of
the public against unjust charges and
DETERMINATIONS i'm local trade, as was the
interstate commerce law to protect COM
rncrcc between the states. ~ he
lieve." says the commissioner, "in
many sections of the west, conspicuo,,sly in
roads is greatly i'm excess of the legitimate
needs OF the carrying trade. If this he
S rniiroa% 1i prosrsies aS @ there TS msss f.i to
yield renuncrative dividends, schedule
rates must he fixed SO high as to prove
unfortunate condition OF affairs neither
pi..;,,,,, panis;s, are to to blame: ,,,. Both s; have
This condition of things presents "a prob
lem difficult of solution. II is safe to say
cxtortionate charges or the waeing of
reckless rate wars"
The security. of the railway system
lies in administering i with
Si SaSiie welfare. if II its S Oppressive %
hand is laid too heavily. upon the people,
II investres i'm railroad properties have
expended their capital in the construction
of lines not demanded by present trade,
then they must share the fate of all who
invest i'm unprotluctive enterprises. Re-
lief can only come through increased
settlement, stimulating business and de-
veloping natural resources.
The interests of railroads and the public.
says the commissioner. suffer from the
energy too largely to securing trade from
competing centers and do not sufficiently
encourage the developcment of local traffic.
The commissioner dweils at length ON the
problem of securing to the government.
payment ofthe amounts due from bonded
to the conclusion that the
most feasible plan to be adopted is to
grant a reasonable extension OF time
with reduced interest, and require pay
ment of certain per cent. of gross earn
ingsb bf roads, to be applied i'm liquidition
to their Indebtedness to the government.
This would relieve the railroad compa-
nies from embarrassment that might
come to them were they required tn pay
fixed sums at stated per cent. In
time of business depression when
the receipts were light their OBJ
legations to pay would he correspondingly
could afford to make increased
payments. Allthese companies own or
operate various lines in addition to
those Subsidized. The government has
no claim upon the earnings of these nom
subsidized lines, and traffic may he di-
verted either naturally or with purpose
from aided to nOn-aisled lines,
and various changes in expense accounts
may he catered up against the aided por-
aided portion. II is apparent that sub
siSlized roads cannot discharge their obli-
cations to the governments at maturity. IL
Is the commissioners opinion IL would he
wise for congress to pass an act giving a
reasonable extent OF time; retluc-
ing the rate of interest to three
or four per cent; requiring that earnings
from all government transactions by sub
sidized companies on all lines operated
by them. whether aided or non-aided.
should be applied to the payments Of any
interest or principal due. or which should