The islander. [volume] (Friday Harbor, Wash.) 1891-1899, 1895-10-10
RESULTOF HARD TIMES
Receipts of Railways Greatly
Reduced in Two Years.
THE REPORT OF WADE HAMPTON
Suggestions Made by the Com mi ssiOner
of Railroads in Regard to the Pa
cific Roads Debts.

cific Roads Debts.
Washington, Oct 4.-Wade Hamp-
ton, commissioner of railroads, has
made his annual report to the secre-
tary of the interior. He says in the
hard times, it appears the gross re-
ceipts of the Union Pacific system wei e
reduced $1,OOO,OOO per month below
the normal. The commissioner says a
cast iron rule as to payments cannot be
observed, and he thinks there should be
a flexible adjustment of annual pay
ments to correspond with diminished
earnings. He thinks the Thurman act
will be found to justify the expectation
of its trainers if the following amend
ments are made:
''First-TO embrace within it's pro-
visions all Pacific roads which have re-
ceived from the United States the loan
Of bonds in aid of construction.
"Second-To provide that so per
cent, instead of % per cent, of the net
earning be retained.
"Third-To extend the debt until it
shall have been discharged as provided.
''Fourth-To further provide that if
any Of the companies abandon any part
of the subsidized lines, or divert their
business from subsidized to an I'M
subsidized road, the company shall in
such case be required to transfer the
lien and condition which attached to
the old subsidized line, in order that
the rights and interests of the United
States may be protected
The commissioner believes such leg
islation will hasten the payment of the
companies indebtedness, as they are
anxious to be freed from governmental
supervision.
The commissioner refers to the fact
that there has been great improvement
in conditions since last annual report,
and that there is an increase in earn
ings of roads under his supervision.
He reviews the financial conditions of
the Union Pacific and the Central Pa
ciic, and says that the debt of the
Union Pacific to the government is
$53, OO5, O63, with total liability of
1887, 1913, 500; the debt of the Central
Pacific to the United States is $751;
734, 1888, with total liability of $780,
O33,6S2. The bonds of the Central
Pacific, which fell due January 16,
1895, were to have been paid by the
company, but, as matter OF fact,
were paid out of the general funds of
the United States treasury. He said
this payment may be reimbursed from
the sale of bonds in the sinking fund,
but there is not sufficient market for
the sale of such bonds to cancel a tenth
of the debt. The properties of the two
roads are reported in good condition.
He reviews the attempt at Pacific rail-
road legislation in the last congress,
and says:
1.-The results of the past two years
have shown that during period of
financial and industrial depression it
would be impossible for the Union Pa
cific company to meet the annual fixed
charges, in addition to other necessary
and inevitable expenses, or to earn such
an amount as would be required to dis
charge the debt to the United States,
in fifty years at per cent, as proposed
in the Reilly bill, or even 2 per cent,
which the representatives of the COM
pany were understood to be willing to
accept. Some regard should be had
for such conditions as have existed,
and which are likely to arise again.