The San Francisco call., 1895-10-19
DIVERSION OF TRAFFIC BY THE
SOUTHERN PACIFIC RUINED
THE UNION ROAD.
REMEDY FOR COMPLICATIONS
SEVENTY ONE MILLION DOLLARS
MUST BE PAID TO PREVENT
a FORECLOSURE.

W MASh1NG1ON, ID. u, Oct. 19.-The
report of the five Government directors of
the Union Pacific Railroad has been filed
with the Secretary of the Interior and will
be given out for publication tomorrow.
1t is ar interesting report and of peculiar
significance and Importance to Californi-
ans, dealing as it does with the relations of
the Government toward the Pacific rail-
roads, opposing any funding scheme and
suggesting certain legislation.
The report was written by William J.
Coombs, one of the five directors. He was
a representative in Congress for two terms
from the city OF Brooklyn. He has for
many years been an exporter of American
goods, and being wealthy man accepted
the appointment of Government director
last June at the request of President
Cleveland, although the emoluments of
the office are trifing.
Mr.. Coombs was, indeed, appointed as
personal representative of President Cleve-
land to inquire into the condition of the
Pacific roads and suggest remedy for ex-
listing financial complications in which the
Government Is involved
Mr. Coombs has Just returned from
tour of the West. and his report is the re-
suit of his personal observations. THE
CALL correspondent is enabled to tele-
graph In advance a synopsis OF the report.
which the directors preface by describing
the territory through which the six trans
continental railroads extend. The conclu-
sion drawn from a geographical point OF
view is that the Union Pacific and Cen
tral Pacific route has great advantage
over the Canadian Pacific, Great Northern,
Northern Pacific, Santa Fe or Southern
Pacific roads, because the former extends
IN direct line westward from the richest
and most productive part of the country
the great Mississippi Valley.
The intermountain country traversed
by it is much superior to the territory
through which run other trunk lines to
the coast. The Union Pacific and Central
Pacific should, therefore, prove to be paw
ing railroads, but this route has been seri-
ously crippled because the Central Pacific.
which Congress intended should operate
with the Union Pacific as one trunk line to
the coast. has not worked in harmony
with the latter road. a great part of the
traffic which formerly went over. the
Central's tracks has been diverted to the
Southern Pacific.
The Central, instead of being a mart of
the great trunk line which Congress- in
granting aid contemplated would run
as one road from Omaha to the
Pacific Coast, is now only feeder
for the Southern Pacific. According
to the directors, this fact is demonstrated
by the large number of complaints heard
among California shippers that they can
not choose their own line, but are practi-
cally cOerced into shipping by the South
ern route.
Congress in extending aid to the Union
and Central Pacific did not expect the two
roads would pay from the start The sterile
country through which they were to pass
was vastly different from the rich and vir
gin soil traversed by other roads. 1t was
not supposed that the local traffic would
be considerable, but chief reliance was
based upon through traffic to be carried
over the Union and Central Pacific roads,
acting coniointly as one great trunk line
between Missouri River and Pacific coast
points. Little by little the Intern oun tain
country has been built up by capital and
labor, so that if the two roads worked in
harmony local and through traffic earnings
would soon enable the roads to pay off
their Indebtedness. The directors say that
notwithstanding adverse conditions the
net earnings of the two roads last year
amounted to seven and a half million
dollars
1t Will be seen. then, that the action of
the southern Pacific in diverting traffic
from the Central route to Itself operated
to defeat the intent of Congress, which ex-
tended aid to the Central and Union
racine upon the hypothesis that the
through traffic earnings of the two roads,
acting conlolntly as one system, would
enable them to discharge their indebted
dess within the stipulated time.
The directors declare against anv 70
funding proposition such as the Reillv
bill in the last Congress. Thev saw that
the Reilly bill failed because of its commit
Gated provisions and the inability of NOR.
bers to understand them. This was varv
obvious toward the close of the debate in
the House OF Representatives when that
measure was under consideration. Sec.
ondly, many members hesitated abon+
voting for the measure, which might and
probably would result in fresh comnIic.-
tions, involving the Government in stil
deeper EN- parra ssment. The directors de-
clare that what is wanted is a measure
simple enough for its terms to be readily
In submitting their recon-.
mendations to legislation they act upon
the assumption that Congress intended
that the TWO roads be operated as one
transcontinental trunk line and this in. |
tentof Congress, they say, is expressed in
every act that has dealt with these roads
Therefore, it is entirely within the power |
,f Congress to provide for the reorganiza-
ion of the roads.
In making such reorganization the d. |!
'ectors say that the Kansas Pacific, Oregon |
Short Line, Utah Northern, Utah South |
,rn and branches should not be included |
Che Kansas Pacific with its mortgages
md debt complications would cause very
,reat embarrassment in effectinp reor