The morning call., 1890-11-07
BONDED RAILROADS.
Financial Condition Of the Systems H.
debtsd TO the Government.

CHICAGO, Nov. 6.-The report of the Com
missioner OF Railroads contains full inform
alton in regard to the condition of the several
railroad companies under the jurisdiction of
his Office for the fiscal year ended June 80,
1890. As to the improvements in bonded
roads the Commissioner says: 81 am able TO
report that many Improvements have re-
Gently been and are continually being made.
These Improvements, where they are made
upon bonded roads. are of especial value to
the Government, as they not only increase
the earning capacity Of the road, 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 in business, put to the fact of
unusual expenditures by the Union Pacific
Company in the purchase of new rolling
stock. As to the present financial relations
between the bonded roads and the Govern
ment the Commissioner says: The same
unfortunate condition of things exists now
that always existed since the bonds granted
in aid of the construction were issued, viz:
That the amounts annually received from
the roads fall largely below the amount
of the interest annually accrung from
subsidy roads. The debts, therefore. due
the Government from these roads, instead
of being reduced, as it was the evident eX-
pectatl0n OIL congress that they would De,
are rapidly increasing year by year. This
increase, however, is not due to any failure
of the railroad companies to comply with
the provisions of the existing laws. The
fault rests in the laws themselves. The per
cent of net earnings required by law to be
raid in the discharge of Government obliga-
tions is not great enough to meet the inter-
est which annually accrues upon the bonds
issued TO and in the const ruction of the
roads,"
The Commissioner adheres to the opinion
that it will be necessary to extend the time
in which the railroads may meet their OBJ
legations 10 tie Government. He suggests
that in no event should the Government be
a loser by granting the extension. The total
net liability of the Union Pacific road TO the
Government on June 80. 1890, was SOL, Ill.,
562. The gross earnings of the bonded por-
ton of the road amounted to SIT, 499, 797, and
the expenses to S12, 6.569 leaving S4, 49,, 207
as net earnings, subject 10 the requirements
Of the law. The amount found due to the
United States for the fiscal year 1889 was
S1,076, 139. The debt of the company on
June 80, 1890, was SITS, ,34S ,039, and its
capital stock S60,S6S,50 making total
liability of $3.50, 1869. The assets amounted
to $274. 343, AL.
The liability to the Government of the
Central Pacific road is given as S53, 326, 765.
Gross earnings on aided portion of the
road amounted to SS,971, GA, and expenses TO
S7662, 491, leaving 81, 1,309,1 122 as the net earn
ings, subject to the requirements of the law.
The Sioux City and Pacific Railroad Com
pany's liability to the Government II given
as S3,611, ,464, and that of the Central Branch
OF the Union Pacific at So, 3SS, 103