The morning call., 1894-11-13
HAMPTON'S PLEA FOR TIME.
They Cannot Pay When the
Bonds Fall Due.
STATEMENT OF THE EARNINGS.
With Lament That the Union
Pacific Should Have Fallen
All to Pieces.

WASHINGTON, Nov. 12.-Hon. Wade
Hampton. C0nmissi oDer of Railroads, has
made his annual report for the year end
ing June so, 1894, to the Secretary of the
Interior. The Commissioner calls atten-
lion to the effect upon railway earnings of
the financial and Industrial depression.
Notwithstanding the depression the Union
racine Is the only one OF the bond aided
railways which during the period men,
TONED passed into the hands of receivers.
The Acknowledgement of this splendid sys-
tenn by the operation under separate re-
ownership of the Oregon Railway and
Navigation Company, the Denver. Lead
vile and Guunison, the Denver and Gulf
and the Fort Worth and Denver City rail
way companies, is commented on as fur
nishing the most gloomy chapter of rail-
way literature that has been published
during the past year.
The accounts of the bond-aided con- pa
MES were examined by the bookkeepers in
Boston, Chicago and San Francisco In the
months of June and July of the current
year, and the amount found due to the
United States carefully aScertaned. A
personal inspection OF the properties of
the Union and the Central Pacific Railway
companies by the Commissioner show
them to be in excellent physical condition.
The Union Pacific Railway, including
the Kansas division, shows a decrease of
net earnings, as compared with 1892. Of
50, los. 055. The amount found due the
United States under the act of 1864 Kan
sas divlsioT@ and the act OF 1873 union
division) was $137,S95 less than the pre-
vious year.
The Central Pacific Railway Company
for 1893 shows a reduction of S57.s92 as
compared with 1892, but the amount of
transportation services rendered the Gov
eminent. which is all credited to the
United States in ascertaining the percent
age OF net earnings, was $110,624 in excess
of the previous year. consequently the
amount found due the United States is
S1726 in excess of 1892.
The commissioner calls attention to the
fact that in the case of the Union Pacific
and Kansas Pacific, bonds 10 the amount of
S640. 600 will mature on November 1. 1895.
and between that date and January /,
1899, the balance Of the subsidy bond ag-
gregating about 81, S99 512 will also mature,
for whose payment or REDEEM ption the COM
pany has practically made no provision.
In the case of the Central Pacific, the
aggregate of whose liability amounts TO
upward of $56,000.000 the company has
provided a sinking fund for the redemp-
ton Of the first-nortgage bonds, the funds
at present available for that purpose
amounting to nearly $4,000. 900.
Referring to what is known as the
Reilly BILL" the Commissioner is of the
opinion that on the basis of operations for
the year 1898 Ito say nothing of the strike
year of 1894 there Is grave doubt of the
ability of the companies TO meet the re-
quiremeuts of this bill. He recommends
the adoption of an amendment to the
Thurman act by providing that the amount
of net earnings to be retained and applied
TO the liquidation of the mortgage indebt-
edness be increased from % to 90 pei cent.
He reDews the recommendation Of last
year that the Thurman act be amended so
as to mbrace within its provisions all of
the Pacific railways which have received
from the United States bonds in aid of
construction.
The Pullman strike of 1894, having, In
the opinion Of the Commissioner, furnished
a powerful argument in favor of the right
of the Government at all times to control
the carrying of the mails and to enforce
the provisions of the interstate commerce
law, he recommends that Congress take
into consideration the prOprietv of Great
ing a national board of arbitration, to
whom all questions In dispute between the
corporations and their employees shall
be submitted before action is had, and
whose decision in respect to all questions
submitted shall be final.