The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-11-13
THE SUBSIDIZED ROADS.
Commissioner Wade Hampton Makes q
Very Friendly Report.

very Friendly Report
WASHINGTON CRY, Nov. i2-Hon. Wade
Hampton. commissioner of railroads, has
made his annual report for the year end
ing Juue 30, 1894, 10 the secretary of the
interior. The commissioner calls atten-
tion to the effect upon railway
earnings of the financial and in-
dustrial depression. Notwithstanding the
depression. the Union Pacific is the only
one of the bonded roads which during the
period mentioned passed into the hands of
the receivers. The dismemberment OF
this splendid system by the operation
under separate receiverships Of the Oregon
Railway 4 Navigation Company, the
Denver, Leadville & Gunnison,
the Denver 4 Gulf and the Fort
Worth and Denver Railway Companies, is
commented on as furnishing the most
gloomy chapter of railway literature that
has been published during the past year
The accounts of the bond-aided companies
were examined by the bookkeepers in Bos-
ton, Chicago aud San Francisco in the
months of June and July Of the
current year aud tho amount found
due to the United States carefully ascer-
tanned A personal inspection of the
properties for the Union and the Central
Pacific railway companies by the
commissioner show them to be in
excellent physical condition. The
Union Pacific Railway Company, iuclud-
ing the Kansas division, shows a
decrease Of net earnings, as compared with
1sa2, of s., leo. 056 The amount found due
the United States under the act Of ls6i
tkansas divisionl and the act Of 1878
(Union divisiou) was $l37. sos less than
for the previous year. The Central Pa
cite Railway Company for 1858
shows reduction of $57,s ,s92 as COM
pared with 1sa2. but the amount
of transportation services for the govern
ment, which Is ali credited TO the United
States in ascertaining ths percentage OF
net earnings. was siio.624 in excess OF the
previous year. Consequently the amount
found due the United States IL {7,-e8 in
excess OF fs92 The commissioner calls at
tention 10 the fact that IN the case OF the
Union Pacific. Kansas Pacific bonds tn
the amount of s640. 900 will mature on
November /. isss5. and between ths, date
and January /. 1893, the balance Of the
subsidy bonds. aggregating about g.. 500
5l2. will also mature, for whose payment
or redemption the company has practically
made no provision.
In the case Of the Central Pacific, the
aggregate Of whose liability amounts 10
upward OF s5d0o0.0C the company has
provided q sinking fund for the redsmp-
ton Of the first mortgage bonds, the funds
AZ present available for that purpose
amounting to nearly 81, COO 600
Referring to what IA known as the
Reilly bill" the commissioner i& OF the
opinion that. on the basis Of operations
for the year lsos. to say nothing Of strike
rear lisa, there is grave doubt
Of the ability Of the companies
70 meet the requirements OF the
bill He recommends the sdoption Of an
amendment 20 the Thurman act by pro-
viding that the amount Of net earnings to
be retained aud applied TO the Iiquida-
ton Of the mortgage indebtedness
he increased from p 10 - per
CEN. he repews the rec ommendstion
of last year that tie Thurman act to
amended 50 as 70 embrace sithin It's pro-
visions all Of the pzc.fie railways which
have resolved from toe United states
bond. IA aid Of construction.
lie recommends that congress take
into consideration tbs propriety OF
creating a national hoard Of ar
bitFatson. 20 whom aii questions
ia dispute between fhe corporations and
thesr employees shall first be submitted be-
fore scslon is had and whose decision IN
respect 10 ali questions submitted sh ali bs
hnai.