The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1890-11-07
SUBSIDIZED RAILROADS.
How Their Accounts stand With th'
Government.


WASHINGTON, Nov. 6.-The report OF
the commissioner OF railroads contains
full information in regard TO the condi-
tion Of several railroad companies COM
ing under the jurisdiction of his Office for
the fiscal year ended June 20, 1880. As 10
the improvements on bonded roads the
commissioner says: II am able 10 report
that many improvements have recently
been and are continually being made.
These improvements, where they are
made on bonded railroads. are specially
valuable 10 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 proceeding year.
This, the commissioner says, is not owing
10 decrease in the business but 10 the
fact that unusual expenditures have been
made by the Union Pacific company in
the purchase of new rolling stock.
As 10 the present financial relations
between the bonded roads and the govern.
ment, the commissioner says: "Ihe same
unfortunate condition Of things exists now
that always existed since the bonds
created in aid of their construction were
issued, viz; That the amounts annually
received from the roads fall
largely below the amount Of interest
annually accruing from the subsidized
roads. The debts therefore due the gov
ernment from these roads instead Of be-
ing reduced, as il was the evident expect
alton Of congress that they would be, are
rapidly increasing year by year. This
increase, however, is not due to any fail
ure Of the railroad companies 10 comply
with the provisions OF existing laws. The
fault rests in the laws themselves. The
per cent. OF net earnings required by law
10 be paid in discharge Of the government
obligations is not great enough to meet
the interest which annually accrues upon
the bonds issued 10 aid in the construc-
tion of the roads.
The commissioner adheres 20 the opin-
ion that il will be necessary 10 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 an extern
sion.
The total net liability of the Union Pa
ciflc road 10 the government on June 20,
1890, was S5i,7l7, ,562. The gross earnings
OF the aided portion of the road amounted
TO Sl7 ,i99, ,797 and the expenses to Sl2, &C.,
569, leaving Si,733,9O7 as the net earnings
subject 10 the requirements of the law.
The amount found due TO the United
States for the fiscal year of 1859 was
Sl,016,l39. The debt OF the company on
June 10, 1890, was sl1s, rs, ,0Sa, and its cap
ital stock SEQ, 800, making total liza.
bility of s2ss, ,7l6,529. Assets amounted to
STA, ,S3,4i1.
The liability TO the government Of the
Central Pacific road is given as S53,s2 s26,-
765. The gross earnings on the aided
portion amounted TO Ss,97l,6 and the
expenses $685., ,isl, leaving sl,90e,123 as
the net earnings, subject TO the require
ments of the law.
The Sioux City & Pacific Railroad com.
pany's liability 20 the government is given
as SS,6ll,iGi, and that Of the Central
branch Of the Union Pacific as s'}Ss, ,i03.