, 1890-11-07
THE PACIFIC ROADS.
Report on Their Condition
by the Commissioner.
He Makes No Radical Sugges-
lions Regarding Them,
Stanley in America Talks
About the Rear Guard"

WASHINGTON, Nov. 6.-The report of
the commissioner Of railroads contains full
information regarding the condition of
the several railroad companies coming I'M
der the jurisdiction of his office for the
fiscal year ended June 30. 1890. AS to
improvements on bonded roads, the COM
missioner says: II am able TO report
that many improvements have recently
been and are continually being made.
These improvements where they are
made up on the bonded roads, are of es-
pecial value to the government, as they
not only increase the earning capacity OF
the roads, but add largely to the value of
the property"
The amount received from the bonded
railroads this year was slightly below the
amount received for the preceding year.
This, the commissioner says, is not owing
to a decrease of business, but to the tact
of the unusual expenditures by the Union
Pacific company in the purchase of new
rolling stock. AS to the present financial
relation between the bonded roads and
the government, the commissioner says:
The same unfortunate condition of
things exists now that always existed since
the bonds granted in aid OF their con-
struction were issued. viz: Tha. the
amounts annually received from the roads
fall largely below the amount of interest
annually accruing from the subsidy roads.
The debts. therefore. due the government
from these roads instead of being reduced
as it was the evident expectation OF con
gress that they would be, are rapidly in
creasing year by year.
This increase, however, is not due to
any failure of railroad companies to com
ply with the provisions of existing laws.
The fault rests in the laws themselves.
The per cent of the net earnings reduced
by law paid in discharge OF the govern
ment obligations Is not great enough to
meet the interest which annually accrues
upon the bonds issued to and in CON
struction of the roads"
The commissioner adheres to the opin-
ion that 1t will be necessary to extend the
time in which the railroads may meet
their obligations to the government. He
suggests that in no event should the gov
ernment be loser by granting the extern
sion. The total net liability of the Union
Pacific road to the government on June
80, 1890, was s5I, 7l7.572. The gross
earnings of the aided portion of the road
amounted to SIT. 499, 1877 and the expense
$l2. 766. 500. lea ring $433, 207 as the net
earnings subject to the requirements of
the law. The amount found due the
United States for the fiscal year 1890
was 81 ,076, 139. The debt of the COM
pany on June 80, 1890, was $178, 34S, 039
and its capital stock 500, SOS. 500, making
the total liability S239, ZIG. 529. The as
sets amounted 90 1914, 343, AL.
The liability of the government OF the
Central Pacific road is given at S53, 326,
765. The gross earnings of the aided
portion amounted to IS. 97l. GA and the
expenses 81, 662, 49l, leaving 81. 3O9, l22
as the net earnings subject to the require
ments of the law.
The Sioux City & Pacific Railroad com.
pany's liability to the government is given
as 1851. 464 and hat of the central
branch Of the Union Pacific at 1888, 1O3.