The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1889-10-01
THE RAILROADS.
Commissioner Taylors Views on the
Business of the R1ads and Ex-
isling Evils.
Liabilities of the Land Grant Rail-
ways With a Recommendation
as to Their Payment.
Rate Wars Discussed and Their Cause said
to be the Building of Lines Where
not Needed.

WASHINGTON, sept. 30.-Rsilroad Com
missioner Taylor in his annual report says
Several land grant railroad companies
have declined 70 report for the reason thai
such grants were made by the respective
states in which the roads are located, and
by the United States, and assert, therefore,
they do not come with the language OF
congress creating this bureau and defining
its powers The position taken by these
companies would seem to be technical and
evassve. The lands were owned y
United States and ,'ranted by acts OF con
gress to the states for the sole purpose OF
aiding in the construction Of railroads and
the companies hEve received the full bene-
ntssof the. grants. The matter is referred to
the secretary of the interior for judicial
action.
He saws there has been no inspections
and no examinations Of the books
ard accounts OF railroads, subject 10 the
supervision OF his bureau, made 10 tDe
current ysar. He is therefore unable 10
make the report as full and complete as it
otherwise might have been. Sioce his
appointment, however, the examination OF
several railroads. In which the government;
has 4 peeuulary interest, has been made:
The total liability Of the Union PACING
10 the government June 3. 'S9. was SO 2os,-
792- The excess OF interest paid by the MT
ed states over all credits amounts 20 $lI
$50 2s0. Total liability of the company T,
S226.5 8, 50, assets, Sz15, SO4 tzS;
Liability of the Central Pacific 10 the
government. S52. 256 734; excess Of interest
paid hy the United states over credits, Sz4 =
4 T054; total debt Of company, ,Sl22. 2oo. 10,
aud 6. y tai stock, S6S 900 900, assets, 81,
759. sS2. There wes net In-rease IN as
81 durIng the yesr II S7S2 SS5. The
sinking funds of the Union and Central
pacIhc companies retainer by the secre-
taTy NJ the treasury. amount TO SiS,5l4 oO4
The Sioux City and Paclnc railroad TeceiN-
ed bonds from 'he United States amount
ing 20 S1,62s. .320 o aid the construction I
lOl1< miles. The interest paid by the
UnHed States amounts TO 81 05O, 4S2, and
there has been retained oy the Ireassry =
discount OF transportation service, Sl0S 0Vsi
leaving the sggregate amount due toe
government 81 go SU3; excess OF interest,"
paid by the United States over credits,
81 S06,gs3 The su5sld ed portion Of the
central branch Of the Union Hacinc re-
ceived bonds of 81 100000 The aggregate
de bt 10 the government to the end OF
the fiscal year amounts 70 S3,SS4. .o72; ex-
cess OF interest paid over credits Sl,f3i,-
50
The commissioner discusses the railroad
situation in the west and refers To the
ruinOus rate wars, etc. he says the un-
D8ralieled development OF the vast re-
sources CT the western states and territOr-
les attracted capital there and railroads
opened inviting fields TO investors. AS a
result railroad building has been carried
on far In advance Oi the needs Of the cOun
try. With the opening of nesrly every
through line new complications have srisen
and 0mpetitiou has been stimulated to the
point of snnihiiatIon of prOfits,
and often producing ruinOus losses.
The rate wars are in many, II not
most cases, devoid of paliiatiOn OF excuse
and insugGTsted without reasonable cause,
and prosecuted with the utter disregard of
their disastrous effects upon the interests
of the companies engaged and the business
of the public. They destroy the value
OF railroad securities, Impose unjust bur
dens upon the cOmmerce OF competing sec
tions, prevent stability in business and
render the profits Of the producer and ira
der alike uncertain l do not Egree with
the clam, so persistently made By railroad
managers, their organs and satellites. that
the n cent 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, it is undoubtedly true laws have
been enforced VIII ch are unjust to railroads
and Injurious 10 pu .lic interests and which
ought TO be especially modified or repealed.