Page:U.S. Department of the Interior Annual Report 1880.djvu/41

Rh west of the Missouri River fills up there will be remunerative business enough for each one of them.

Particular attention is invited to the remarks of Mr. Nichols, the railroad engineer, in regard to the important subject of railroad accidents and their prevention, and the statistics furnished relative thereto.

As to the large increase of business on the railroads of the United States, the Auditor remarks that it has been mainly on the railroads of the Middle, Western, and Southwestern States, business on the railroads of the New England and Southern States not having materially increased. A comparative statement of the business of many principal lines east and west of the Mississippi River is also submitted.

The passenger traffic on the Union Pacific, Central Pacific, and Kansas Pacific Railroads reached its maximum in 1875, since which time it has greatly decreased, while the earnings for freight have continued to grow.

The business of the Sioux City and Pacific and Central Branch Union Pacific Railroads has increased to such an extent that an annual payment can be made hereafter by those companies on account of “5 per cent. of net earnings,” to be applied in liquidation of their debt due the United States.

Attention is called to the fact that many of the roads included in the act creating the bureau have neglected to furnish the reports called for; and it is suggested that patents for lands be refused to such companies as do not comply with the law.

The total amount of the “five per centum of net earnings” of the subsidized Pacific Railroads to December 31,1879, has reached the sum of $5,355,150.08, being an increase since last report of $638,884.85, while the debt of the same companies for bonds issued is as follows:

The Auditor gives detailed statements in regard to the sinking funds of the Union Pacific and Central Pacific Companies, showing the character and amount of investments; and, in view of the many difficulties attending a fair and equitable investment of these moneys, suggests that amounts covered into the sinking funds be credited, with interest at 6 per cent. per annum, payable semi-annually. The Auditor also calls attention to the delay in the settlement of the companies' accounts for transportation, the balance of unsettled accounts being so large as to be a serious loss to the companies in the matter of interest.

The Auditor publishes in his report departmental circulars affecting Pacific and other railroads, laws of the United States affecting railroads and telegraphs, and recent decisions of the Supreme Court relating to the same subjects.

Under the recent decision of the Supreme Court of the United States