St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-10-04
Railroad Commissioner Hold
Taylor Talks Learnedly
of His Work.
The Utah Commissioner Sees
Hope for the Suppression
of Mormonism.
Commissioner Harris Pleads
for More Money to Aid
Education.
Cinnamon Must Be Sent to
China--The Capital
Roundup.

WASHINGTON, Oct. 3.-The third an
nual report of Commissioner of Rail-
roads Taylor was handed to the secre-
tary of the interior to-day. The report
says of the railroad situation that for
the past year there has been an increase
in the gross receipts, but a falling off in
net earnings, owing to increased compe-
tition. The net earnings of the roads
Indebted to the government show a
slight decrease over last year. The
roads are paying into the treasury each
year all that the laws require them to
pay.
Detailed statements are given, show
ing the financial condition OF the COM
panies. the gross and net earnings,
government requirements, amounts
paid in and total amount OF government
debt. These statements show that the
total gross receipts of the bonded roads,
for the year, for which settlements are
made, were s2S,04j, 1851; net earnings,
S6.05S,695; government requirements,
81, 740,0S5; paid in, S1,616,O64. There
are accounts for transportation services
rendered, In the hands of the account
ing officers of the treasury, largely IN
excess of the balance of the govern
ment requirements unsettled.
The total debts of the bonded roads
up to Dec. 81, 1890, amount to S112, 512,-
613. The increase in the debts of the
bonded roads is not owing 20 the failure
OF the companies to comply with the
laws. They pay yearly all the laws re-
quire them to pay. The trouble is that
the percentages required by law to be
paid do not create sum equal to the
interest the government has to pay on
the subsidy bonds.
Il Al
of the Union Pacific in aiding the con-
struction of branch lines, which shall
be tributary to the main line. He says:
1t would be almost impossible to en-
phasiZe too strongly the value to the
Union Pacific of its branch lines. 1t
is alone through them that the opera
tons of the main line, on which the
government holds lien, have been
made profitable. Some of the branch
lines may not be profitable in them
selves, but as feeders to the main line
they have value which does not APP
pear on their own balance sheets. The
transcontinental business, which was
large and lucrative few years ago. is
now divided among many competitors.
and is almost insignificant as to amount
and profit. 1t is the local business
alone, most of which is contributed by
the branch lines, that brings profits to
the main line. Were it not for these
feeders the Union Pacific would yield
no netearningS whatever, and the prop
erty would not be worth the first mort
gage bonds.
The commissioner urges very strongly
and at considerable length the great
necessity of some action being taken
looking to settlement between the
bonded roads and the government. He
hor ;fot III
adjustment can be reached, it will be in
accordance with simple, practical bust
ness prudence. The government has
loaned its money and its credit and is
entitled to its pay. The debtor com
panies acknowledge their obligations
and profess to be anxious to cancel
them as fast as possible, without en-
barrassing their general business. Both
parties desire settlement and. by a
proper effort, it seems certain that an
equitable one may be effected. With
the government, the time of payment is
of little consequence, but secur-
ity Is everything. / have little doubt
of the ability of the principal bonded
roads to eventually meet all their obli-
cations to the government, out the sum
of these debts is apparently beyond pos
sibility of payment in money at their
maturity. Some plan of refunding must
be devised in order to give them time.
The course of the government should
be that which any practical business
man would pursue with private debtor
in a similar situation" The commits
sioner recommends the appointment of
commission of not over three members,
10 be persons in government employ, to
consider the situation, confer with the
railroad companies, and report their
conclusions to congress. If such an adj
juStment could be agreed upon as would
secure to the government the moneys due
it. and not seriously affect the business
or credit of the railroads or burden the
traffic and hinder the development of
the sections tributary to them, a great
public good would be accomplished.
Surely the magnitude of the interests
involved in this controversy may well
command the early attention of con-
greSS.