Page:U.S. Department of the Interior Annual Report 1880.djvu/42

40 in the case of Thomas vs. West Jersey Railroad Company, any unauthorized lease entered into by railroad companies must be canceled.

Another important decision is that of the Court of Claims, No. 11471, in the case of The Atchison, Topeka and Santa Fé Railroad Company vs. The United States, in which the court holds that 50 per cent, of its gross earnings is a fair compensation to the company for the actual cost of transportation and such part of the profits upon transportation as are earned by the company from the government.

Particular attention is called to the circular of the Treasury Department dated November 29, 1879, giving notice to all government officers and employes that no money payments for transportation can be made to Pacific Railroads which have been subsidized with bonds.

On January 26,1880, articles of consolidation were filed in this department in accordance with law, in which the Union Pacific Railroad Company, the Kansas Pacific Railway Company, and the Denver Pacific Railway and Telegraph Company are consolidated under the name of "The Union Pacific Railway Company."

The property and business of the Union Pacific Railway Company is reported on in full, and has been found in good condition, with business increasing. Under the sinking-fund act of May 7, 1878, the "25 per cent, of net earnings" found due the United States by the company amounts to $1,532,916.12.

The Union Pacific Railway Company furnishes reports from which the following statements are derived: