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32 made, for the reason that only in this or some similar way the interests of the government in this respect can be protected or a statement of the account between these companies and the United States be given.

In performing his duties under the law the Auditor has, during the last fiscal year, traveled over many thousand miles of railroad.

In passing over these railroads and examining into their condition, he has found the strongest evidence of returning prosperity and increased immigration in the Western and Pacific States. The many rapidly-growing new settlements insure permanent improvement to the business of both the railroads and the adjacent country.

The growth of towns is mentioned by him as the result of a liberal policy and effort of the western railroad companies — showing what the cultivation of good relations between the railroads and the people may accomplish.

These efforts of the railroad companies as well as the yearly increasing harvests, the great development of the mineral wealth of the West, and the returning confidence in the stability of values, constitute mainly, in his opinion, the basis of the improvement in the business of the railroads.

The increase of construction, business, and profit, during the year 1878 is shown to have been particularly large on the railroads west of the Mississippi; as to railroad construction, it is stated that for ten months, ending October 31, 1879, there were built in the United States 2,900 miles of new railroad, of which over 2,000 miles were west of the Mississippi, while the average new construction for the five years previous — taking, of course, only the first ten months of each year — amounted to only 1,600 miles.

It is remarkable, however, that, notwithstanding the large increase of population in the West, the facilities afforded for travel, reduction in rates, and a general increase in railroad business, passenger traffic has decreased, indicating, as the auditor believes, either that the people could not afford to travel, or that the railroad companies have not yet solved the problem of passenger transportation.

The regular work of reporting to the Auditor’s office by the railroad companies has been simplified and reduced to a single semi-annual return, and the great desirability to the railroad companies themselves is pointed out of keeping their books and accounts in such a manner as to be able to make full and satisfactory reports, since it will enable them to know just what it costs to do certain work, where to retrench, or where to improve.

In this regard the Auditor deems it well if some line were drawn either by State or National authority, so that certain information, absolutely necessary for a stockholder or creditor to know the condition of a company’s property and affairs, or such as may be required for the Census or State and National legislatures can be easily and promptly furnished. Reports of railroad companies, if not uniform as to time or facts, are almost valueless for publication or comparison.