Page:U.S. Department of the Interior Annual Report 1878.djvu/21

Rh 178 locomotives, 128 passenger-cars, 41 baggage, mail, and express cars, and 3,357 freight and other cars. The stock subscribed amounts to $36,783,000; stock issued to $36,762,300. The par value of shares is $100. The subsidy bonds amount to $27,236,512; the funded debt to $51,116,200; total stock, subsidy bonds, and funded debt is $115,115,012. Floating debt and interest accrued on subsidy and other bonds to June 30, 1878, amount to $17,683,394.07; bonds and stocks of and investments in other companies amount to $4,916,229.77; cash, material, and accounts due amount to $10,195,160.15. The cost of road, equipment, and Missouri River bridge, as appears on the company's books, is $120,627,064.69. The earnings for the year ending June 30, 1878, were: From passengers, $3,259,223.42; from freight, $7,573,105.21; miscellaneous earnings, $1,951,812.59; total earnings, $12,784,141.22. The operating expenses of the road were $5,803,266.95, and the net earnings, $6,980,874.27. The interest paid is $3,402,891.58. The dividends paid amounted to $2,204,700. Ten million seven hundred and sixty-four thousand nine hundred and forty-seven acres of land granted to this company remain unsold.

The Auditor further states that, under the laws in force to June 30, 1878, there will be retained probably of the amount due the Union Pacific Railroad Company, $616,066.93, as one-half of the amount due for transportation, and $352,330.17 as 5 per cent. of net earnings; total, $968,397.10, applicable on account of subsidy bonds; the remainder of government transportation account for the year payable to the company being $263,736.76; and the total government transportation being $1,232,133.86.

If the sinking-fund act had been in force during the last fiscal year there would have been retained, $616,066.93, one-half of transportation, and $106,660.49, cash payment on account of 5 per cent. of net earnings; total, $722,727.42, which, if deducted from the above amount of $968,397.10, leaves $245,669.68 as the amount to the disadvantage of the government under the new law, so far as a direct payment for the use of the United States is concerned, although $616,066.93 being required for the sinking-fund, the total payment by the company becomes more than was required under previous laws by the sum of $370,397.25.

From the statement of the Auditor it also appears that under the sinking-fund act the net earnings at the disposal of the company for the last fiscal year would have amounted to $4,016,383.04, and that this sum would have enabled the company to pay interest on all its bonds, land-grant, sinking-fund, and bridge bonds, and dividends on par value of its capital stock of very nearly 6 per cent.

The Central Pacific Railroad Company has not complied with the law requiring reports to be made to the Auditor, and certificates as to their neglect to do so have been submitted to me. A report of this company, under section 20 of the act of 1862, and under the act of June 25, 1868, which have been repealed, was, however, received by this department,