The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-11-21

WASHINGTON, D. c., Nov. 12.-Hon
Wade Hampton, commissioner of railroads.
mas made his annual report for the year
ending June 80, 1894, to the secretary Of
the interior
The commissioner calls attention to the
erect upon railway earnings of the finan-
cial and industrial depression which, before
reaching the United States, had Frustrated
every industry in South and Central Amer
lea ana in Mexico. He noted the fact that,
Notwithstanding the depression, the Union
Pacific, which includes the Kansas Pacific
is the only one of the bond aided railways
which, during the period mentioned, passed
into the heacs OF receivers The dismem-
berment Of this splendid system by the
operation, under separate receiverships, OF
the Oregon Railway and Navigation Com
pany, the Denver Leadville and Gunnison
and the Denver and Gulf and the Fort
Worth and Denver City railway COM
panieS, is commented 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 and San Francisco in the
months of June and July of the current
year and the amounts found due the
United States carefully ascertained
A personal inspection of the properties
of the Union and the Central Pacific rail-
way companies by the commissioner showed
them to be in excellent physical condition.
The Union Pacific, including the Kansas
division, shows a decrease of net earnings
as compared with 1892 of s2,10J716. The
amount found due the United States under
the act Of 1864 (Kansas divisiom and the
act of 1878 Onion divison) was S137Sa5 less
than for the previous year.
The net earnings of the Central Pacific
railway for 1893 show reduction of S57, $50
hli q Of
transportation services rendered the gov
eminent (Which is all credited to the
United States in ascertaining the percent
age of net earnings) was $11062l in excess
OF the previous year; consequently the
amount found due the United States is
SIPS in excess of 1892.
The net earnings of the Sioux City and
Pacific Railway Company in 1898 were $685.
400 in excess of 1892, the amount expended
for new construction and equipment 1ur-
ing the year not having Gas in 1922 reduced
the net earnings to an amount insufficient
to pay the interest on the
FIRST MORTGAGE BONDS
The amount found due the United States
therefore, under the acts of 1862 ana 1854
was $5779 in excess of the requirements
for the previous year.
The Central branch of the Union Pacific
Railway Company shows a decrease in net
earnings, as compared with 1892, OF $1G0.112,
and corresponding decrease IN the amount
found due the United States under the
acts of 1924 of $500.
The commissioner calls attention to the
fact that in the case of the Union Pacific
Railway Company, Kansas Pacific bonds
to the amount of s64O,000 will mature on
Nov. /, 1895, and between that date and
Jan. /, 1899, the balance OF the subsidy
bonds, aggregating about So, S99.512, will
also mature, for whose payment or re-
demption the company has practically ma de
no provision.
In the case of the Central Pacific. the
aggregate of whose liabilities amounts to
upwards of S56,00O00O, the company has
provided sinking fund for the relemp-
ton of the first mortgage bonds. the funds
at present available for that purpose
amounting to nearly s6,000,0O0.
Referring to what is known as the
REILLY BILL" the commissioner is of the
opinion that on the basis of operations for
the year 1893 to say nothing of the
strike" year of 1890 there i, grave doubt
of the ability of the companies to meet
the requirements of this bill.
He recommends the adoption of an
amendment to the Thurman act oy pro-
viding that the amount of net earnings to
be retained and applied to the iit;uit!ation
of the mortgage indebtedness be increa sed
from rs to so per cent.
He reneWs the recomm antlation of last
year that the Thurman act be amended
so as to embrace within It's provisions all
of the Pacific railways which have re-
ceived from the United States bonds in aid
of construction.
The Pullman strike of 1884, having, in
the opinion of the commissioner. furnished
a powerful argument in favor of the right
of the government at all times to regulate
the carrying of the mails ana to enforce
the provisions of the interstate cor,oerce
law, he recommends that congress take
into consideration the propriety of Great
ing a national board of railway arbitra-
tion to whom all questions in dispute be-
tween railway corpora tons and their en-
ployes shall first be submitted before ac-
ton is had, and whose decision, in respect
of all questions submitted, shall he final.