Show The Railroad Investigation NEW YORK April 30 Charles Francis Adams continued his testimony The Salina and Southwestern Road ran twentyfive miles southwest from Salina into the agricultural agri-cultural districts in Kansas It has always paid expenses and runs through the best wheat country Kansas Adams would as soon think of cutting off his finger as of dropping that branch from the Union Pacific The Utah and Northern branch ran from Salt Lake and Ogden 4G6 miles north through Idaho The Union Pacific bought it in 1875 and it was very profitable for years When the Northern Pacific was built it was cut in two and has not paid since This year it will pay running expenses ex-penses The road was built on religious principles by Mormons Tho examination of the roads operated by the Union Pacific being concluded Adams was examined as to mileage A branch road doing a small business needed to make a Creator profit on each item carried and for freight pickup or deliveries at the point where the branch is connected with the main line it is given a constructive mileage The main road may carry freight 1CD > miles ond the branch road fifty miles and yet the branch may be allowed constructive mileage of two miles for every one of actual carriage car-riage This constructive mileage always worked in favor of tho branches pro rata against the main line and therefore by this rule the branches of the Union Pacific took from the general receipts of that road all that was allowed them and constructive mileage There had been very few complaints com-plaints of discrimination by competitors Adams had never heard of any proposition to abandon the Union Pacific to the Government Gov-ernment except what had been in the newspapers news-papers There were tho UtahColorado the Oma haMontana and tho Transcontinental pool In the pool the Pacific Mail got 80000 a month Of this tho Union Pacific paid from a quarter to a third In 1886 the road carried car-ried 35 per cent of the traffic and got for it nearly 26 per cent less money Tho tans continental business is becoming a less and less important factor of business of the Union Pacific In 1886 the rate per mile was 113 cents now it is 3 of a cent per mile The money paid out in a pool settlement settle-ment never appeared in the reports It is paid before the reports are made up and is simply deducted from the gross earnings After recess there was informal talk between be-tween tho Commissioners and President Adams The legal expenses of the company were about 60003 a year Regarding the receipts which the road should include in its calculations 25 per cent of which goes to the Government Judge Dillon said it had been decided that tho proceeds of the land were not governed by the Government lien The Government mortgage was not extended to the land granted the road The land was granted to the company to build a road and the act provided pro-vided that the land must be sold in three years The percentage oomes out of the net Income of the road The net income and net earnings are distinct things The condition con-dition is made for us and all we have to do is to pay the amount demanded and then see if we cant get back all that we have paid over what we should have paid There was some consultation regarding the future proceedings of the Commission Mr Adams stated that the law obliged each of the roads after accruing to the Union Pacific to continue n separate organization and thus obliged a complicated system of bookkeeping There were forty of these organizations and Adams supposed he was president of them all He hoped the report of the Commission would provide a plan for relief from the useless and complicated system I sys-tem of accounts Adams was obliged to leave for the West I and could not be back before May His examination was interrupted at this point and tho Commission adjourned till Wednesday Wednes-day next Who will be put on the stand they did not know |