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Rh required, but has never been furnished in such manner as to give an intelligent idea as to its correctness. The reports of “engineers, superintendents, or other officers who make annual reports to said railroad companies” are required to be furnished, but have not been by all. Again, in the case of the Central Pacific, it is necessary to a proper division of its earnings and expenses, that a separate account and report be had as to that part of the road known as subsidized, namely, 866 miles of its 1,219. The Union Pacific fails to report the earnings and expenses of the Omaha Bridge, although decided in 1875 to be a part of their road. The expenditures for improvements, betterments, and for new construction and equipment should be given in detail and verified by a competent officer of the government, and the time of making up their annual statements should be Juue 30 of each year, conforming to the fiscal year of the government.

These constitute but a few of the shortcomings in the reports made by the companies to this department.

For the supervising of the accounts of these railroads, the government directors recommend that a special bureau should be established in this department. With this recommendation I fully concur. A competent and energetic officer in charge of such a bureau would enable this department to act promptly and intelligently, whenever action on its part is required, in regard to the great interests of the government in these railroads, and to furnish valuable assistance to other departments of the government and to Congress in matters relating thereto.

The report of the government directors of the Union Pacific Railroad Company, (the only one for which such directors are appointed,) for the year ending 30th June last, is herewith transmitted. The act of 1st July, 1862, provided for two such directors to be appointed by the President. The number was increased to five by the act of 2d July, 1864, which also provides that one of them shall be placed on each of the company's standing committees, and at least one on every special committee. They are required to report from time to time to the Secretary of the Interior in answer to any inquiries he may make of them, touching the condition, management, and progress of the work, and to communicate to him, at any time, such information as should be in his possession. They are authorized to go over the road as often as may be necessary to a full knowledge of its condition and management.

Their reports embody much valuable information that would not otherwise come into the possession of the General Government. The suggestions contained in their last report are well worthy of consideration by Congress.

The Kansas Pacific Eoad was placed in the hands of a receiver 3d November, 1876, in consequence of failure on the part of the company