Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-11-09
PROSPECT ENCOURAGING
Improvement in Railway Earnings During
the Present Yssaur!i Yeas
il. n
Annual Report of Commfssioner
stool.
HamptOn-LOv-Wat Mark i'm Con.
az
structiOn Reached Last Year.

The report of the commissioner of rail-
roads for the last fiscal yeaf was made
public today. 1t is an Exhaustive docu-
ment, covering ninety-eight pages of print
ed matter. E.rG
THE long period of general depression in
all lines of business. beginning in 1892 and
continuing throughout the succeeding three
years., says Commissioner Wade Hamp-
ton in beginning his report, twas conspicu-
ously marked during the year 1896, when.
owing to partial failure of crops low
prices, and the uncertainties always at
tendant upon national election year. BUSH
ness almost reached the point of stagna-
ton. No industry is more sensitive to dis
turbances in commercial circles and more
accurate in Rejecting surrounding condi-
tons than the railroad business and the
STATISTICS for the past calendar year show
falling off In the passenger traffic, and a
general decentralization among the railroads
as to freight rates, Which seriously affect
ed their earnings from those sources. The
low-water mark was reached in railway
construction and during the year thirty
four roads with 5,441 miles of road passed
INTO the hands of the courts, and fifty
elgnt others which had been previously
placed in receivers hands were sold at
foreclosure.
1T is gratifying to note however. a
steady Improvement in railroad earnings
during the first six months of the current
year. This is particularly noticeable in the
so-called bond-aided Pacific roads. The
outlook in the west generally for the pres
ent year is very encouraging Everything
points to an increased acreage and larger
crops, and with prices higher there is every
reason to look for a decided Improvement
In railroad earnings The demand for cars
began fully a month earlier than is Gus
tomary, and it is expected that 1t will be
unusually large this fall
Owing to a reduced clerical force and a
reduction in the allowance for travelling
expenses, 1t has not for some years been
possible for officials of this bureau to each
year actually inspect the physical condition
or the roadbed, shops and equipment of
each of the various lines of railroad coming
within the jurisdiction of the Office and to
report on the same, required by the act
creating the bureau The Inspections there
fore. have been generally confined to the
bond-aided roads, they being the ones in
which the government is financially inter-
ested. This year, however, after making
the usual inspection of the bonded roads, l
visited many of the Immigrant lines as
circumstances permitted.
Inspecting the Pacific Lines.
'The main line Of the Union Pacific from
Omaha to Ogden, the Central Pacific from
Ogden to Sacramento, and the old Western
Pacific from Sacramento via Niles to San
Francisco. were inspected by me personally
in July last. 80 The roadbed has
been much improved during the year, the
policy of substituting steel for wood in i'm
portant bridge structures and of placing
heavier steel rails In the track having been
continued. l"
Under my direction, careful inspection
was made by the assistant bookkeeper of
the office In August Of the other bond-aided
lines, viz, the Kansas division of the Union
Pacific and the Sioux City and Pacific rail-
roads, both of which he reports to be in
very good condition. He also inspected the
aided line of the Central Branch Union Pa
cific, and reports 1t as in poor condition
ana not kept up to the standard of the
other bond-aided roads. also personally
travelled over, in August and September,
the following lines of road which obtained
grants Of land from the United States: The
Chicago and Northwestern railway from
Chicago to Council Bluffs, Iowa; the South
ern Pacific of California three divisions),
the California and Oregon, the Oregon and
California, and Northern Pacific railroads
"Of the subsidy bonds which were issued
by the United States under the acts of 1852
and 1864 to aid in the construction of the
several Pacific railroads there have matur-
ed $20,114, 600, and SO, 60, 600 of these bonds
have been redeemed and paid out of the
cash in the treasury of the United States,
leaving still due and unpaid $6O.0OO."
The proceedings in the foreclosure case of
the bond-afded roads is reviewed at length.
He refers to the bid of $50,OOO.OOO on the
Union Pacific railway mortgages which
were to be foreclosed and says:
Union Pacific Debt.
1t Will be seen that the principal OF
bonds issued to the Union Pacific Railway
Company and the interest paid thereon by
the United States amounted on June 80
1887. to $92,040, 44O.1S, and there had been
repaid by the company on its bond and in.
terest account s2O931, O40.61, leaving the
balance of debt due the United States ST.,
Ilyy soil <Nfi sy,tar h..
Union Pacific railway properties therefore,
at the minimum price guaranteed as above.
the loss to the government as of that date
would be 81, 1O9, 390.57. The minimum bid,
together with the amount already repaid
by the company, will be equivalent to re-
turning to the United States the principal
of bonds originally issued and very nearly
SA per cent per um-during the thirty
years the bonds have run.
Il have, in each one of my previous re-
ports, recommended the adjustment of the
Indebtedness of the Pacific railroads to the
government through the medium of COM
mission, to be appointed by the President,
and it has always seemed to me that a
settlement more advantageous to the gov
ernment could be obtained If all the COM
panies, particularly the Union and Central
Pacific, could be negotiated with at the
same time, and possibly in the same way,
than could be accomplished by settling with
them at different times and on a different
basis 1 am not disposed, however, to
by the Department of Justice in the case
Of the Union Pacific railway. and. viewed
from financial standpoint, it would seem
to be about the best thing for the govern
nient to do under the circumstances. The
main objections which have been urged
against this method of settlement have
come from strong advocates of government
ownership, or of operation under govern
ment supervision. I have always regarded
this as not only doubtful but dangerous
experiment. which would involve the gov
eminent in enormous expense and would
in all probability result disastrously.'
Concluding. the report states:
THE estimates Of appropriations SUBJ
nlitted by me for the bureau for the year
ending June 80, 1899, are the same as the
appropriation for the current fiscal year.
They are: Commissioner. $500; book
Keeper, 5000; assistant bookkeeper, 81. 500;
clerk, 81, 400; clerk, 81 ,OOO; assistant mes
senger. 500; travelling expenses for the ex-
animation of books and accounts of the
subsidized railroad companies and inspect
ing the property thereof, as required by
law. $1,000: total. 81. 400. :.
-1T--e--
FnPmePA, TnafftnfoaQfn