New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-11-07
CONDITION OF THE LAND GRANT ROADS.
ANNUAL REPORT OF THE COMMISSIONER OF
RAILROADS.


Washington. Nov e.-The report of the Commissioner
OF Railroads contains full information in regard to the
condition of the several railroad companies coming
under the jurisdiction Of his Office for the fiscal year
ended June 80, 1890. As to the improvements on
bonded roads, the Commissioner says 4" l am able to
report that many Improvements, such replacing iron
rails with STEEL putting in stone and iron cuverts
and bridges In place Of wooden reducing grades
ballasing; charging machine shops building new
staton-louses adding to terminal facilities increasing
rolling stock, ETC., have recently been and con
tnually being made. These improvements, where they
arc made upon the bonded roads, Of especial value
TO the Government, they not only increase the earn
ing capacity OF the roads, and thereby the amount OF
net earnings to be paid in liquidation Of the Government
debt but they add largely to the value of the property
and so increase the Governments security and render
full final payment Of the claims of the United States
more certain
The report of the Commissioner shows that tie
amount received from the bonded roads this was
slightly below the amount received for the preceding
year. This, lie says, is not owing to decrease In
business, but 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 Government, the Commissioner
says in part 1.-THE same unfortunate condition Of
things exists that has always existed since the
bonds granted in aid Of their construction we're issued
viz. That the amounts annually received from the
roads fall largely below the amounts Of Interest
annually accruing upon the subsidy roads. The fault
rests In the laws themselves The per cent OF net
earnings required by law to be paid in discharge of
the Government obligations Is not great enough to
meet the interest which annually accrues upon the
bonds issued to aid In the construction OF the roads,
The Commissioner discusses at considerable length
the causes which have operated to reduce largely
the net earnings Of the bonded roads, the most con
spicuous one being the building OF numerous COM
peting lines and the consequent reduction in both the
volume and rates OF traffic. In the last few years
there has been craze for railroad building in the
West and many investments railroad properties have
failed 10 yield the smallest dividends. lie pre-
diets however, that this condition of things. owing to
the rapid development OF tho West will long exist
The Commissioner adheres TO the opinion given in
his last report that will be necessary TO extend the
time In which tie railroads may NEE: their obligations
10 the Government. lie believes that il would be
great calamity should tho Government be compelled to
railroads lie suggests that In would the Gov
eminent be loser by granting the extension, and that
no funding bill should be considered that does not pro
vide for Of interest at least equal 10 that which
the Government Is required to pay upon ts obligations
The total net liability of the Union Pacific road to
The Government June 30, 1890 S51 ~ .562. The
gross earnings Of the aided portion of the road amount
ed % sl7 409707 and the expenses 27G6 500 leav
ing ~ 1873 207 net earnings subject to the require
mems OF law. The amount found due the United State.
for Inc fiscal year 1850 III 076l39. The debt OF
the company June 80. 1890 was Sl's 0a9 aud its
capital stock $50 $4,000; making a total liability Of
The liability to the Government Of the Central Pacific
rad i given at %53,326.165 The gross earnings Of
he aid,d portion Amounted To S-,011 ga, and the
pcnses ~ G62 is1 leaving 81 ,3o0i22 net earnings
subject TO the requirements Of law. The Sioux City
IN, T. given as s3GII fGS and that OF the Central
branch OF the Union Pacific as S3.3ss.lO3