New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-10-01
RAILROADS OF THE COUNTRY.
ANNUAL REPORT OF THE COMMISSIONER
CONDITION OF EACH OF THE BONDED ROADS
SUGGESTIONS FOR FUNDING BILL

THE BUREAUS POWERS.
Washington Sept. 3O-Horace A. Taylor, the Com
missioner OF Railroads has fled with the Secretary OF
the Interior the annual report Of the operations Of bis
bureau for tho fiscal year ended June 80, 1880 The
Commissioner says Several OF the railroad COM
panies which have received grants of public lands
70 aid in the construction OF their roads decline TO
report TO this Office for the reason that such grants
made BY the respective States in which the roads
located and not by the United States and assert
that therefore, they do not within the language OF
The Act OF Congress creating this bureau and defining
its powers. The point made Is that a grant to
State for a railroad is not grant TO the railroad
company. The position taken by these companies
would seem TO be technical and evasive"
The Commissioners construction Of this clause OF
the act is that such grant Is subsidy contemplated
by the act He has therefore referred the matter
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 dis appointment as Commissioner (July
II, $780, Since that date however. an examination
Of the several railroads in which The Government has
| a pecuniary interest has been made. The following
statement shows tho condition of each, the cents In
every case being omtted
The subsidy bonds issued to the Union Pacific Com
pany TO aid in the construction Of ifs road amount
to 500 $50 .512; interest paid thereon by the United
States s43,161 ,407; aggregatug the sum Of
| 576,70O9l0. There has been repaid by
| the company in transportation services and
cash payments shown by the books Of the Treasury
Department, the Of goo ,431 1877; which makes
Its liability to the Government June so, 1852
amount TO SOL ,26o 100. The of interest paid
by the United States over all credits amounts to
| 81 73o ESQ. The debt Of the company on June 80
1880, S165 657, $50. and the capital stock $780,
s6s5oo, making total liability Of S226,o2o,1o9
The assets amounted TO s275,304,723. The amounts
found due from the company under the Acts of July l.
1862, and May 1873, for the year ending December
| 81, 1888, were follows
Union divsIon-Total earnings, S13 EGO 594; total
| expenses, $10,035,33o; net earnings. $3,7s5,o6o
Twenty-Five per cent of net earnings under the Act
| Of May Z, 1878, S9463l4
Kansas divison-Total earnings, s3,3c6576; total
expenses 81 1897 1872 net earnings IL S4 1888. Five
| per cent Of net earnings and onc-half Government
transportation, S115 219, making total Of S1,061
| 333.
The subsidy bonds issued 10 aid in the construction
of tho Central Pacific Railroad amount to S27, 1856 $50
and the interest paid thereon by the United States TO
s35, $40, aggregating the sum of S63,0o4529.
There has been repaid by the company in transporta
| ton services and cash payments, as shown by the
books of tho Treasury Department, the sum Of s10,-
TAT 794 which makes IT'S liability to the Government
June 80, 1889, amount 10 S52256,T34. The excess
of paid by the United States over all credits
amounts S24 4o1 o54. The total debt OF the com
pany June 80, 1880, was 1925, 296,1e5 and the cap
ital stock SOS, 100000. The assets amounted to
1920, 1857 1852 During the year the liabilities in:
creased So OPS, 1886, and the assets 81 o97 001 max
ing net increase In assets Of S732e35 The funded
debt amounted t. ss7, e14,6s0.
The amount found due from the company under
the Acts OF July 1, 1862, and May T. 1873 for tho
year ended December 81, 1888, as follows Total
earnings, so 17S 266 total expenses 81 ,633,916 net
Z i've NJ mt
s77,217; whole Government transportation, 1896, 900
total due, S487 ,217.
The sinking funds Of the Union and Central Pacific
companies held by the Secretary OF the Treasury June
80, 1859, amount to $13514,604; the
Union Pacific having to IT'S credit S929s,-
s62, and the Central Pacific S4215,752.
The premium paid bonds for the sinking fund Of the
Union Pacific amounts TO that date to 81 726. and
the interest received from invest to S1,216673
For the Central Pacific tho premium paid amounted to
1908 9s6 and the iDtereyt received in investment to
S657 $780,
The Sioux City and Pacific Railroad Company 70
ceived bonds from the United States amounting 10
81 800 TO aid in the construction of 101 SO miles
that portion of the line between Missouri Valley and
California Junction. 5.54 miles, not being subsidized
The interest paid by the United States amounts to
| So $50 400, and there had been detained by the
Treasury Department, on account OF transportation
services rendered, the of 1853 500, leaving an
aggregate amount due the Government June 80. 1882
of 90 525 500. The excess Of interest paid by the
United States over ell credits amounted to 81 500 $50
| The amount due the Government under the act Of
July q 1854, for the year ending December 81 1888
was follows Total earnings sol7 $50; total OK
penses 1877 6I7; net earnings, sl41672; per cent
Of net earnings and onehalf Government trsnsporta-
| ton, $1s,9Sf.
The subsidized portion Of the Central Branch of
! the Union Pacific line is operated by the Missouri
Pacific Railway Company and extends from Atchison
| TO Waterve, Kan, distance of 100 miles. the Gov
eminent having issued bonds to aid In its construction
amounting to 81, 900 ,000 The interest paid by the
United States amounted to So ,125eos and there has
| been repaid, by cash payments and moneys for
transportation services withheld. the of 1901 045,
making tho aggregate debt TO the Government June
80, 1885, amount to So, 1884, 1872 The Of inter
est paid all credits amounted to Si,734,76
| The amount found due the United States under the
act Of July 2, 1864, for the year ending December
| 81, 1888. follows: Total earnings, s4o6o34
total expenses S276143: net earnings $1l7 800: )
| per cent of net earnings and one-hah Government
| transportation, sid 664.
The report then discusses the railroad situation in
| the West and Northwest. The Commissioner dwels
| upon the excessive railroad building In that section
and denounces the frequent rate wars in general
devoid of pahatlon excuse" While admitting
| that in some States, notably Iowa, laws which are
unjust to the railroads have been enacted and en-
forced he defends wisely conservative" of the
railroad legislation enacted by the states, and es-
pecialy the Interstate Commerce Law. He concludes
that Both the interests Of the railroads and the
public suffer fiom the fact that railroad managers
devote their energies too largely to the securing OF
trade from competing centres. and do not sufficiently
encourage the development of local traffic"
In regard to the nature Of the necessary legss
ton In the matter of the bonded roads. the Com.
| missioner says in part:
Existing laws are wholly inadequate to secure
the payment of the debts due and shortly to become
! due. 1t is imperative that Congress provide some
measure of relief 1t is my opinion that It would be
wise 10 pass act giving reasonable extension o,
limo; reducing the OF interest 10 per cent
requiring that the earnings from all Government