The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1889-10-01
TOO MANY RAILROADS
Dividends Impossible Till the
West Catches Up.
RATE-cuTT,No a GRAVE evil
accommodation cf Psrire Raflrc.d
commissioners Taylor - TO Dehts Of
che Subsidized Lines.

NosaaaEssoEsr Taylor. IN his annual re-
port. says Several lani-gran railroad
companies decline 10 report. for the reason
taAl such grants we're made by the resper-
i've states IN which the roads are located
and not By the United States. Thsy as
seri. therefore. that they 10 not come
within the language OF congress creating
tnis bureau and defining its powers. The
POSITION taken By these companies woEId
seem to DC technical and evassve. The
lands we're owned by the United States ard
granted by acts ot congress 10 the states for
tne sole purpose of aiding in the constrnc-
noE OF railroads The companies received
the fuii benefits OF the grants He refers
the matter 10 the secretary OF the interior
Tor Judicial action.
0ine commissioner saws there has been no
INSPECTION and no examination of the books
and accounts OF the railroads subject TO
supervision OF his bureau made during the
current year covered by this report up 10
his appointment as commissioner. July Il,
1873 HE IS therefore unable to make the
reTort as fuil and complete as ii might
otherwise have been Since his appoint
fnsn', however. an examination OF the sew
eral railroads in which the government has
pecuniary interest has been made.
The total liability of the Union Pacific to
the government. June 80. lss,, was 81, $50 :
~. The excess of interest paid by the
United states over all credits amounted to
IN. The total liability OF the COM
pany was s2e6. 6.aa6159. Its assets amounted
To s275 80. .72S.
The liability OF the Central Pacific to the
government Was $59 .2256 TSi The excess of
interest maid hr A. I'D ~
credits was SCI ,s0i .uS4 The total debt of
the company was sl25 .25s, los, and the cap
ital stock SIS, ,npcODa. The assets amounted
To $221, T5T $50. There was net decrease
IN the assets during the year of $.32 ,SS5.
The sinking fund OF the Union and Central
Pacific companies. delivered BY the secre-
tary OF the treasury, amount 10 si3 .5ii ,6oi.
The Sioux City < Pacific railroad re-
ceived bonds from the United States
amounting to 81 SIS $50 TO aid in the con-
struetion of l0is. miles. The interest paid
by the United States amounts TO So .05o. 40,
and there has been retained by the treas
ury on account of transportation services
<l55,519, leaving an aggregate amount due
the government o. s3,525. .s03. The excess
OF interest paid by the United States over
credits is 81 SOS es3.
The subsidized portion of the Central
branch OF the Union Pacific received bonds
of $4,000. The aggregate debt to the
government at the end OF the fiscal year
amounts To s. $50, Ts3. The excess OF inter
est paid over credits is 81. .7Si, 762.
The commissioner discusses the railroad
situation in the West and refers to the
ruinous rate wars. He says the unparai-
eIied development OF the vast resources of
the Western states and territories has at
traeted capital there. and railroads opened
inviting fields to investors. As q result,
railroad building has been carried on far in
advance of the needs of the country. With
the opening oi nearly every through line
new complications have arsen and compe-
tition has been stimulated 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, inaugurated
without reasonable cause and vindiciiveIy
prosecuted with utter disregard OF their dis
astrous effects upon the interests OF the
companies engaged and the business pub
lie They destroy or imperii the value of
railroad securities, impose unjust burdens
upon the commerce of competing sections,
prevent stability in business and render the
profits of producer and trader alike uncer-
tain.
do not agree with the claim so persist
emily made by the railroad managers, their
organs and satellites, that the recent losses
sustained in the railroad business are
mainly due to The restrictive laws which of
late have been enacted by congress and in
many of the Western states. In some
states. notably Iowa, il is undoubtedly true
that laws have been enforced that are un-
just toward the railroads and injurious To
the public interests, and which ought to be
speedily modified or repealed. Most OF the
legislation for the regulation OF railway
traffic within the states has been wisely
conservative and was as surely demanded
for the protection of the public against un-
just charges and determinations in local
trade as Was the interstate commerce law
TO protect commerce between the states.
believe that in many sections OF the
West. conspieiously in Iowa and Kansas.
the mileage ot the railroads is greatly in ex-
cess OF the legitimate needs Of the carrying
trade. II this be true, then many of the in
vestments IN railroad properties there must
fail 10 yield remunerative dividends, or the
schedule of rates must be fixed 20 high as
to prove ruinoasly burdensome 10 traffic.
Fer this unfortunate condition Of affairs
neither the people nor the railroad com
pany are wholly to blam me. Both have con-
iributed 10 bring il about. This condition
of things presents problem difficult OF
solution. Ii Is safe TO say the remedy does
not he in the levying of extort4onste
charges or the waging of reckless wars.
The security of the railway system
lies IN administering il with careful
respect 10 justice and the public welfare.
II It's oppressive hand is laid too heavily
uron the people. revenge and revolt VIII
be sure 10 follow. II investors In railroad
properties have expended their capital in
the construction o. lines not demanded by
present trade then they must share the
fate Of al unproductive enterprises Re-
LEI can only come through increased set
tlement stimulating business and develop
ing natural resources.
The interests oi both the railroads and
the public says the commissioner. suffer
froM the fact that railroad managers de-
vote their energies too largely 20 securing
trade from competing ceuters an9 90 not
sufficiently encourage local traffic
The commissioner dweIIs al length or
the problems Of securing 10 the government
payueng Of the amounts due fFnga the
roads. lie says be has come 10 The con-
clusioR that The most feasible plan ls to
grant reasonable extent Of tine. low rates
ot interest and the payment os q certAtn
Per ceat. al the gains Of the road. 10 te ap-
yssle,s IN liquidation os their indebtedness "a
tie government. This would relieve the
railroad companies {roga the embarrassment
that might coa-e 10 them were