Omaha daily bee., 1890-11-07
A MOST IMPORTANT RULING.
Chairman Finley Discovers the Antidote for
Crooked Rates aud Applies It.
AN EFFECTIVE CHECK ON sCALPlNG.
Report OF the Commissioner of Rail :
roads-Finnnc iai Relations of the
bonded Roads with the
uoyernme

CHICAGO, Nov 6.-lSpecial Telegram to
THE BEE l-Chairman Fenley ofthe Western
passenger association today authorized in
tereSted lines to make a rate of $500 between
St Louis ana Kansas City. The reduction
is one dollar, but the decision accompanying
1t is perhaps, the most important ever made
by passenger association chairman. 1t is
that in the future Chairman Finley will
authorize any line to meet any rate quoted by
Scalper, provided there are enough crooked
tickets in the market to cut any figure The
case In question was brought by the
Alton against tho Missouri Pacific
conductors checks, ostensby given to
through passengers from Denver and beyond
to ST Louis. but who wished to stop OFF in
kansas City. Chairman Finley ruled that
no such number of checks could have been
given out legl tlmately and consequently au-
thorzed the reduction and coupled with 1t
MS decision on cases to come. The effect can
not but bo good one, but rates will here
after tumble openly ds soon as any line puts
an issue OF crooked tickets in ScalpcrS hands.
sad Assistant Passenger and Traffic Man
ager Byrne of the Atchison: TOO much
praise can not be given Chairman Finley for
his decision. twill be the most wholesome
check ever put on western roads and will
make passenger agent think twice before
he puts out a line of crooked tickets.n
The Railroad Comm ssioner's Report.
WASHINGTON, Nov. 6.-The report of the
commissioner Of railroads contains full in
formation in regard to several railroad COM
panies coming under the jurisdiction of his
Office for the fiscal year ending June 30, 1890.
AS to Improvements on the bonded roads. the
| commissioner says: II am able to report that
many Improvements have recently been made.
| 1mprov vements where they are made upon the
| bonded roads are of special value to the gov
erument, as they not only increase the earn
| ing capacity of the roads, but add largely to
| the value of the property"
The amount received from the bonded
roads this year was slightly below the
amount received for the preceding year
| This the commissioner says, is not owing to
| decrease in business but to the fact of un-
usual expenditures by the Union Pacific
company is the purchase of new rolling
stock. AS to the present financial relations
| between the bonded roads and the govern
| ment the commissioner says.
| 1.-The same unfortunate condition of things
| exist now that always existed since the bonds
| granted in aid of their construction were
| issued, viz-that the amounts annually re-
| ceiued from the roads fall largely below
| from subsidy roads. The debts, there
| fore, due the government from
| these roads, instead of being reduced, as
| it was the evident expectation of coll gress
| that they would be- 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 existing
| laws. The fault rests in the laws themselves.
| The percentage of net earnings required by
| law to be paid in the discharge of government
| obligations is not great enough to meet the
| interest which annually accrues upon bonds
| issued to aid in the construction of roads"
The commissioner adhereS to the opinion
| that it would benecesSary to extend the time
| in which the roads may meet their oblga-
| tions to the government. He suggests that
| in no event should the govern ment be a loser
| by granting the extension
| The total net liability of the Union Pacific
| road to the government on June 30, 1890, was
| S5l, 7l1562 The gross earnings of the aided
| portion of the road amounted to 7499, 1871
and the expenses to sl2, 766,569. leaving
| 81, 133 207 as the net earnings subject to the
| requirements of the law. The amount found
| due the United States for the fiscal year 1889
| was sl,076l39. The debt Of the company on
| June 80, 1890, was Sl1S SS4S ,039, and its capi-
tai stock $50, S6S,5O0, making the total liability
| S239, 7lB, 529. The assets amounted to
| S214 ,343, Al.
| The liability to the government of the Cen
| trail Pacific road is given as S53,326, 165. The
| gross earnings of the aided portion amounted
| to SS,0N GA and the expenses to SI662, ,49l,
| leaving 2l 1907, 10 as the net earnings subject
| to the requirements Of the law.
The Sioux City * Pacific railroad COM
| panys liability to the government is given as
| S3,61l ,464, and that of the central branch of
| the Union Pacific as $333S, 1903.