, 1889-10-01
PACIFIC RAILROADS.
Annual Report of Commissioner
Taylor.
Recommendations Favorable to
Subsidized Bonds.
Rate Wars a Great Detriment
to General Business.

WASHINGTON. Sept. 30.-Horace A.
Taylor. commissioner of railroads, has
made his annual report to the secretary
of the interior. He reviews the railroad
situation and rate wars during the past
year and 2eclairs that the ~unfavorable
railroad situation is not due to the inter
state law as claimed. but to those u%niusti-
fable rate wars and unnecessary extern
sions of new lines. He says a numher
of railroads which received land grants
from states refuse to report to him. These
lands, he says. belonged to the United
States and he thinks the roads should be
compelled to report.
The total liability Of the Union Pacific
to the government June 80, 1889, was
ISL ,269. 1872. The excess of interest paid
by the United States over all credits
amounts to Sl7, 730, $50. The total LA
the assets amounted to $275, 304, 723.
The liability of the Central Pacific to
the government was $50, $50, 734. The
excess of interest paid by the United
States over credits s24,4 01 .054. The to-
tai debt of the company was $I25, ESQ.,
l65 and the capital stock sos, 600, 600.
The assets amounted to 1922, 1851, 1872.
There was a net decrease in the assets
during the year Of 1892, 1886.
The sinking funds of the Union and
Central Pacific companies delivered BY the
secretary of the treasury amounts to 3d.
STA, GOA.
The Sioux Cify&P Pacific railroad received
bonds from the United States amounting
to 81. 62S, 800 to aid in the construction
of lOl3 miles. The interest paid BY the
United States amounts to 81, 05O, 49,. and
there has been retained by the treasury on
account OF transportation service $l53.-
500, leaving the aggregate amount due the
government So, 522, 1903. The excess of
interest paid by the United States over
credits was 81. 500. 9S3.
The subsidized portion OF the Central
branch of the Union Pacific received
bonds to the amount of 81, 600, 900. The
aggregate debt to the government at the end
of the fiscal year amount to SO. 1874. 1872,
the excess OF interest paid over credits
81, 734, 1862.
The commissioner discusses the rail-
road situation in the West and refers TO
the ruinous rate wars. etc. He says the
unparalleled ~developmeet of vast re.
sources III western states and territories
attracted capital there and the railroads
opened inviting fields to investors. As a
result, railroad building has been carried
on far in advance of the needs of the
country. With the opening of nearly
every through line, new complications
have arisen and competition has been
stimulated to n point of manipulating
profits aud often producing %ruinous
losses.
Rate wars are in many. if not in most
cases., devoid of palliation or excuse, and
~inauguratej without reasonable cause and
yindicatvely pr, secuted with utter disre-
gard OF their disastrous effects upon the
interests OF the companies engaged and
the business pubic. They destroy or i'm
peril the value of railroad securities, i'm
pose unjust burdens upon the commerce of
competing sections, prevent the stability
of business and render the profits of the
producer or trader alike uncertain.
lie says: Il do not agree with the
claim so p rsistently made by railroad
managers, their organs and satellites, that
the recent losses sustained in the railroad
business are mainly due to the restriction
law which have of late been enacted by
congress and in many of the Western
States
IL Is the commissioner s opinion that it
would be wise for congress to pass an act
giving a reasonable extension of time and
reducing the rate of interest to 3 or 4 per
cent, requiring that the earnings from all
government transactions by subsidized
cnmnauies On all lines operated by them.
whether aided or non aided, should be
applied to the payments of any interest
or %prIncipnl.