REPORT OF THE COMMISSIONER OF RAILROADS. DEPARTMENT OF THE INTERIOR, OFFICE COMMISSIONER OF RAILROADS, Washington, D. C., November 1, 1882. SIR: In compliance with the statutory requirements of the act creating this bureau (20 U. S. Statutes, 169, sec. 3), I have the honor to submit the following report in regard to the bureau and its operations, and of the condition of the property, business, and accounts of the several railroad companies which have complied with the request of this office under the law, and to which, or their predecessors, the United States have granted, and which have directly or indirectly received, any subsidy in bonds or grant of public lands, and the geographical location of whose railroads is in whole or part west, north or south of the Missouri River. ACCOUNTS. Able and expert accountants of this office have investigated and re ported upon the business, financial condition, and proportion of "net earnings" due the government for the past year. The results are shown in detail under the proper headings hereafter. Free access has been accorded to the books and accounts of the several subsidized roads, whenever requested. Detailed statements of the earnings and expenses, financial condition, and physical characteristics of the various land-grant railroads have been compiled from examination and returns made, and are submitted herewith. As a rule, the accounts of the roads are kept in a thoroughly comprehensive and business-like manner. Reports to this office are not always made as promptly as required, but the desire is expressed by the different companies to fully and promptly comply with the lawful demands of the bureau. INSPECTION OF PROPERTY. Properly authorized members of this bureau, in conformity with the law, have made extensive trips this year to inspect the vast properties of the numerous bonded and land grant railroads coming within its jurisdiction. A decidedly healthy improvement in construction, operation, and business has been manifest. Steel rails are being substituted for iron as rapidly as practicable, more ties to the mile and of superior quality, better fastenings and good ballast are being used. Bridges and buildings are not only being repaired and renewed, but generally improved or replaced by better ones. Embankments and cuts are being widened, grades and curvatures reduced, and general improvements made as far as practicable. The best pattern, as to service, of locomotives is being used, and improved passenger and freight cars purchased 433 or built. Where the financial condition of the companies admit of it, new machinery of the most improved kind is being obtained; shops, round houses, station buildings, section and tool houses are being constructed of a much improved and superior character. The unprecedented construction of railroads during the present year deserves very thoughtful consideration. The Pacific companies are rapidly extending their lines, some through sections of country which are and will remain for years to come of little value, but which extensions are for the most part necessary to secure the trade of rapidly developing sections, and to make through connections with important distributing points which will ultimately be of great value to the main lines. List of roads inspected and reported upon: Central Pacific system: Central Pacific, main line: San Francisco to Ogden via Benicia.. Sacramento to San Francisco via Niles, &c. Southern Pacific of California, Arizona, and New Mexico. Miles. $35 170 187 1,286 2,478 1,033 105 Missouri Pacific main line, Saint Louis to Kansas City.. 283 Missouri Pacific main line, Atchison to Omaha... 166 Kansas and Texas Division (Missouri, Kansas & Texas Railway), Sedalia to Vinita 211 Saint Louis, Iron Mountain and Southern Division, Saint Louis to Texarkana 490 Sioux City and Pacific: Freemont to Missouri Valley Junction, and thence to Sioux City, Iowa, Appendix 7 of this report shows in detail the condition of the transportation accounts of the indebted Pacific Railroads to the government to be as follows: Transportation services performed for the United States to December 31, 1881, as shown by companies' books... Less one-half of charges for transportation prior to 1873, paid to the companies... [Act of March 3, 1873, requires all transportation performed for the government to be withheld. Prior to that time onehalf of amount was paid to the subsidized railroads.] One-half retained and applied to the credit of the companies, prior to 1873.... Transportation services performed and settled for prior to the act of 1873..... Remainder applicable to "repayment of interest," to the payment of “5 per cent. of net earnings," and to the payment of requirement for U. S. "sinking fund". APPLICATION. Included in this remainder of $16,804,044.67 is transportation on non-aided lines operated by the subsidy roads, amounting to To which add one-half of remaining transportation on subsidy portions.... Total to bond and interest account.... One-half transportation ($14,085,680.91) on subsidized portions, to sinking fund account.. Total.. $4,295, 187 98 4,204, 471 03 $2,718, 363 76 $25, 303, 703 68 8,499, 659 01 16,804, 044 67 7,042,840 45 9,761, 204 21 7,042,840 46 16, 04, 044 67 The total cash payments to December 31, 1881, which have been required from the companies, in addition to the retention of the entire compensation for services, are as follows: Central Pacific.. Central Branch Union Pacific.. Less balance due the Kansas Pacific for excess of transportation over and above the annual requirement for 5 per cent. of its net earnings to December 31, 1881. Total..... The Central Pacific Railroad Company has deposited the above amount of $1,282,264.44 in the Treasury, but the balance of $901,837.03 due from the Union Pacific which owns and operates the Kansas Pacific Railway as one of its divisions has not been finally adjusted, owing to items for new construction and new equipment being in dispute, and which is hereafter more fully discussed. PASSENGER AND FREIGHT MILEAGE AND RATES. Frequent inquiry has been made as to the relative business and rate of compensation for freight and passengers on the Pacific roads, as compared with roads not within the jurisdiction of this office. With a view to intelligent comparison, I have had compiled a table showing the mileage and rate of compensation for the years 1878, 1879, 1880, and 1881 of twelve of the leading representative roads of the United States, which is herewith submitted. The low average mileage of the Central Pacific is by reason of about four-fifths of the passenger traffic being what is known as Ferry passengers," the haul of which is about 6 miles, thus proportionately reducing the general or average mileage. Number of miles per ton of freight, with average rate per ton per mile. In this connection I have also had prepared a table of the earnings, mileage, and rates of compensation for passenger and freight traffic over the Union and Central Pacific roads from the first year of their operation to the latest yearly returns, as complete as the data accessi ble would admit. They show a steady increase in mileage and volume of business and decrease in rates of compensation. |