Year: 1879




difficulty of having no previous knowledge upon
which TO base comparison but it IL, nevertheless.
sufficiently obvious that the property instead of de-
though slowly, to feir degree of excellence.
1t is STILL however, far short of what. with its
ought to be, and very far short in almost every
spect Of that high standard of excellence, both in
scope and in detail TO which those familiar with the
toned.


GREAT MANAGER NEEDED


As regards the local management the directors
not sufficiently acquainted with those who compose
it to offer any criticism of value The officers are,
doubtless competent, energetic and faithful,
questionably they experienced. There is.
however, nothing in the present shape OF the
organization as regards the division of labor and
study of detail which would indicate that it is
the work OF any superior organizing mind. 1t gives
rather the impression OF being simple even to crude
ness and quite lacking III system. This absence of
thorough organization is very apparent whenever
results are examined in detail. On the road itself.


tor instance It is evident that the standard of excel
lence where it has been established at all, has not
been fixed high enough rigidly insisted upon. 1t
is that the Union Pacific has always been oper-
ated and renewed under circumstances unfavorable
at least to its thorough organization. Its ownership
has more than once changed. and, as is well known,
it has at times been in hands solicitous to
movements of the stock market than honestly desir
of attaining even material excellence. The local
sible management, nor, however good and COM
prehensive its ideas may have been, has
have ever Da61s 6seapea position when tSa wo%la
Meanwhile it is obvious that no system whatever
has been pursued in filling up the subordinate sit
uations. AS vacancies occurred officers have
the road from all sections of the country and have
brought with them theories aud methods which are
far from uniform The result is that there is no ap-
parent uniformity of work. While the individual
division superntendeuts and roadmasters appeared
efficient and faithful they did recognize the
standards nor it obvious did they in many
have any conception OF what the highest standards
We're Passing to details, the government directors
report, among other conclusions based their in
spection that the road is literally equipped with
| rolling stock; that the company seems to be pur





| in its bridges, and the roadbed, although.
whole, not yet brought up to the stand
completion Of its needed Improvement will be
simple and inexpensive matter. They comment OH
the irreguarty OF the spacing and size of the ties
ing has been done, and say there is an absence OF
symmetry and disregard of appearance about the
track which are not suggestive of first class rail
road. They say the stations and other buildings
tie line, even at central points like og-
eraly eeM cheyenne not credtaSls to the Company any
Originally cheap and temporary the structures at
these points have deterorated with time and use:
Large and expensive renewals III this respect should
already have been made and cannot much longer be
deferred The only exceptions noted are the general
offices of the Corporation at Omaha, the new depot
at Council Bluffs and the roundhouses ut division
centres


The government directors say it is in the character
of it's rails however. that the Union Pacific is most
deficient Considering :, the large income of
of Steel the economy of renewals in this
respect has been carried much too far. While
during the last years six first class roads in other
parts Of the country have wholly replaced their iron
with STEEL removing every defective rail from their
tracks the Union Pacific has thus renewed but 80
miles out of O3G. This comparatively small por-


ton of it's tracks is fairly up to standard. but the
remainder hardly be ranked even second
class. After detailing and sharply criticising the
condition of the road in this respect the directors
say -"Our examination has led us to believe that
the material condition of the property while
careful and sufficiently safe is by no means lib
eral Abe impression given to inspector is that the
principles of economy are very rigidy enforced by
distant board of directors the local management.
The percentage of operating expenses to gross earn
ings is very closely watched. However it might be
if the road were completed and brought throughout
up to first class standard, 1t is obvious that the
percentage OF operating expenses is now smaller
than it should be, and the that it is smaller is
made plainly apparent by any close inspection. The
policy of the company in this respect has not been
such the country had q right to expect or the
government to insist upon. The report next
elaborately considers the relations of the


its inhabitants with the line and with the connecting


lines. The directors remark that in view of the
pexty of the interests involved they discuss tho
subject of the prdper business policy OF this road
with much diffdqtce and consciousness that All
ability to pass witt any weight of authority upon it
calls for acquaintance with facts which cannot be
speedily acquired much less irnprovised. They con-
tinue upon one IIont however. we are clear As re-
material condition the Union Pacific occupies pccu-
lsr position. 1t is both national and continental


horoughfare built in large degree by contributions
from the public purse. In view of these facts those
who own and control it have incurred response
bility which they should cheerfully recognize,
to oN ignore. ,rs' The The policy Of Of the Company Company
should be = public spirited policy. The
mercal relations strict business principles should
be tempered with Hberality 1t would not seem.
therefore unreasonable to ask the development Of
the country. and the easy and even economical
change Of traffic should be considered by those in
vested with the management, AS well as the strict
business view of the largest profit.





In any event ii is clear the mission Of those repre-
senting the national government in the Union Pacific
direction. it, indeed they have any mission to de-
velop this principle OF public responsibility and to
keep it continually in the minds OF those more i'm


it is either expected desired that the Union Pacific
should be operated without regard to profit. On
the contrary, the interest of the corporation and
of the government as its largest creditor.
are in that respect the same. What is desired and
should be insisted upon is obviously something of a
wholly different charactcr-it is that the business
policy of the corporation should be large and liberal
minded-a policy looking not only to the immediate
turns of the present month or year but
which gives full weight also to those re-
mote results which may be made to follow the
devel ,pinent the country. Above all, a policy
which seeks far circumstances will permit TO
avoid all determinations to deal reasonably and
equtably both with other roads and with differently
circums tanced individuals and communities. Meas
ured by this standard IL would be occasion for sur
prise IL the course of the Union Pacific not found
open to much adverse criticism. IL unquestion-
ably is. This criticism, however. II may be
stated in the outset should not parake of the chara
ter of sweeping denunciaton. There is, on the
trary much to be said both generally and in detail in
defence of the which the company has recently
pursued in the conduct of its business. All things
dercd, it's tariffs, though high in comparison
with those in some OF the trunk lines of the
East, are lower than the average and in respect
at practical aud material appear to be extor-
tionate,


COMPETITION.


The report proceeds to show that the Union Pacific
road does not. il generally supposed, enjoy
practical and very valuable monopoly Tor at the few
points ON it's line where it finds any business to
speak of it meets competition in form, and at
the many points where IL meets no competition it
finds business. These facts alone would prevent
the adoption OF cxtOrtionate rates The gov
crnment directors find, however, that, apart from
all competition, such does not seem To have been
its policy. In the adjustment of its tariff il has
evinced a spirit which they characterize lat once
shrewd. businesslike and money making, fully awake
t. all the advantages of geographical situation and
disposed to forcgo none OF them, but rarely oppres
sive witha" Nevertheless they of opinion that
asa ~ IL business nncY npifler h.an far