to the number of 367,450 shares, of $100 each, have been issued, and are outstanding. The receipts for the year ending 30th June, 1877, were, from transportation of passengers, $4,237,952.58; of freight, $8,036,621.87; and from miscellaneous sources, $1,444,769.37; total, $13,719,343.82. These figures include "the amounts earned from, but withheld by, the United States, for transportation of its passengers, freight, and mails." The expense of operating the road for the year, was $5,402,252.24; leaving net earnings, $8,317,091.58. The constructionaccounts of the company, including some unsettled accounts with contractors, show the cost of the road at $117,334,256.10. The total funded indebtedness (including the government loan of $27,236,512) of the company is $78,733,712.

The amount of stock of the Central Pacific Railroad Company subscribed is $62,608,800, of which $54,275,500 has been paid. The receipts for the year ending 30th June, 1877, from transportation of passengers, were $5,563,870.07; and of freight, $10,095,349.87; total, $15,659,219.94. The operating expenses of the road for the year were $8,326,614.21; leaving net earnings to the amount of $7,332,605.73. At the close of said year the indebtedness of the company amounted to $94,339,500.01; of which $27,855,680 is due to the United States. This company embraces, by consolidation, (besides the original Central Pacific Company,) the Western Pacific, the California and Oregon, the San Francisco, Oakland, and Alameda, and the San Joaquin Valley Companies.

Stock of the Central Branch Union Pacific Railroad Company to the amount of $1,000,000, has been subscribed, of which $980,600 has been paid. The receipts for the year ending June 30, 1877, were, from transportation of passengers, $40,401.88; and of freight, $149,947.84; total, $190,349.72. The amount expended in said year for running expenses and repairs, was $180,467.72; leaving net earnings $9,882. The road and fixtures have cost $3,763,700. The company's indebtedness, in addition to the government loan, and first mortgage of $1,600,000, and interest unpaid, is $60,000.

The amount of stock of the Kansas Pacific Railroad Company allowed by law is $10,000,000. Of this $9,689,950 has been subscribed and paid. The receipts for the year ending June 30, 1877, were: From transportation of passengers, $967,969.80; of freight, $2,032,361.36; miscellaneous, $18,700.30; total, $3,019,031.46. Total expenses for the year, $1,674,140.42; leaving net earnings, $1,344,891.04. The cost of construction and equipment of 673 miles (main and branch line) is $34,359,540.66. The funded debt of the company is $28,589,100, of which $6,303,000 is due to the United States. There are other liabilities to the amount of $3,115,698.79, making the entire debt $31,704,798.79. The earnings and expenses, as given in this statement, from July 1, 1876, to November 20, 1876, are taken from the books of the company; those from November 21, 1876, to June 30, 1877, are taken from the books of the receivers. The road went into the hands of receivers on the

20th November, 1876.

Stock of the Sioux City and Pacific Railroad Company to the amount of $4,478,500 has been subscribed, of which $1,791,400 has been paid. " The receipts for the year ending 30th June, 1877, from transportation of passengers, were $86,033.11; of freight, $205,898.36; from express, $2,784.71; and from miscellaneous sources, $5,831.21; total, $300,546.39. The expenses of the road and fixtures during said year were $285,366.64, leaving net earnings, $15,179.75. The bonded indebtedness of the company is $3,256,320, of which $1,628,320 is due to the United States. The floating debt is $69,955.29.

Stock of the Southern Pacific Railroad Company, of California, to the amount of $38,122,000 has been subscribed, of which $36,763,900 has been paid. The amount received for transportation of passengers for the year ending 30th June, 1877, was $1,646,693.49; of freight, $1,883,900.46; total, $3,530,593.95. The expenses of the road and fixtures for said year, were $1,724,174.41, leaving net earnings $1,806,419.54. The bonded indebtedness of the company is $29,300,000. The construction of additional portions of this road has steadily progressed since the date of the company's last annual report. There have been constructed and brought into operation during the year ending 30th June, 1877, 253.78 miles. This whole distance has been laid with steel rails, weighing not less than 50 pounds per linear yard. The company now has in operation 711.95 miles of road. On the 25th of January last, your predecessor accepted 20 miles of this road, beginning at Goshen and running in a westerly direction; on the 21st February last, he accepted another section of 20 miles, beginning at a point in the N. E. of section 2, T. 19 S., R. 20 E., Mount Diablo base and meridian, and running in a southwesterly direction; and on the 2d March, he accepted 78.59 miles, beginning at a point in the N. W. of section 3, T. 2 N., R. 15 W., San Bernardino base and meridian, and running northerly.

The Northern Pacific Railroad Company was reorganized on the 29th of September, 1875, under a plan which had been adopted by the holders of the company's bonds, and under which the company's mortgage was foreclosed. On the 12th of August preceding, all the company's property and franchises were sold under a decree of the United States district court for the southern district of New York, and purchased by a committee of the bondholders for the account of all the holders of the company's bonds and stock, pursuant to the provisions of said plan. Thisplan of reorganization, approved and confirmed by the said district court, provided for the conversion of the outstanding bonds of the company into "preferred stock," and its stock into "common stock." Up to June 30, 1877, there had been issued of preferred stock to bondholders who had surrendered their bonds for conversion, and also in settlement of claims and salaries, the amount of $36,609,245.95. Of common stock, there had been issued, to the same date, 139,453 shares, of $100 each. The company is operating 450 miles of its road from Duluth, at the west end of Lake Superior, to Bismarck; 105 miles from Kalama to Tacoma, Washington Territory; and 17 miles from Tacoma toward Wilkeson, 31 miles from Tacoma, to which point

it was expected that the road would be finished by the 20th October; and which, the president of the company informs me, is now completed. The road is definitely located from the mouth of Heart River, on the Missouri, to the mouth of Glendive Creek, on the Yellowstone, a dis. tance of 205 miles. Between the last-named point and the junction of the Deer Lodge and Little Blackfoot Rivers, Montana Territory, the line has not been definitely fixed, though it will probably follow the Yellowstone as far as the mouth of Porcupine Creek, a distance of 200 miles from the mouth of Glendive Creek. In Washington Territory the branch and main line both terminate at Tacoma, on Puget Sound. The cost of surveys during the year ending 30th June last was $11,785, making the total cost of surveys $1,124,728.55. This includes the purchase of the right of way. The amount received from transportation of passengers for the year ending 30th June, 1877, was $283,915.78; of freight $663,203.05; from miscellaneous sources $63,930.60; total $1,011,049.43. The operating expenses for the year were $477,451.40; leaving net earnings $533,598.03. The total cost of construction and equipment of the road to that date was $19,421,977.56. The company's indebtedness to said date was $309,720.81. As an offset to this debt the company had bills receivable, balances due from other railroad and transportation companies, and from the United States, $229,100.54 ; leaving a net indebtedness of $80,620.27.

Stock of the Atlantic and Pacific Railroad Company to the amount of $19,760,300 has been subscribed and paid. This company's railroad is completed, with the telegraph line, from Pacific, Mo., to Vinita, Indian Territory, a distance of 3274 miles, and there has been no further construction of the company's line since its report of June 30, 1876. The cost of the surveys of the road to June 30, 1877, is $323,927.36. That portion of the road lying in the State of Missouri was, on the 8th of September, 1876, sold to the Saint Louis and San Francisco Railway Company, with all its franchises, equipments, and other property pertaining thereto, by the foreclosure of the second mortgage thereon, and the latter company has been operating the part of said road lying west of the State of Missouri since that time. Hence there have been no receipts from passengers or freight by said Atlantic and Pacific Railroad Conpany to report. The cost of the road and fixtures is $37,368,789.64. The bouded indebtedness for which the company remains liable is the first-mortgage railroad and land-grant bonds.

Stock of the Texas and Pacific Railway Company to the amount of $50,000,000 is authorized by law, of which $7,483,400 has been issued. The receipts for the year ending 30th June, 1877, were, from transportation of passengers, $531,385.27; of freight $1,468,694.63; from express $20,323.37; mail $31,035; telegraph $14,494.32; miscellaneous $4,706; total $2,070,638.59. The expenses for said year were, for conducting transportation $142,170; motive power $310,476.44; maintenance of way $444,105.96; maintenance of cars $135,484.79; general expenses $49,749.37; total $1,381,986.56; leaving net earnings $688,652.03. The

entire indebtedness of the company is $19,264,684.99. There are 443.86 miles of the main line of this road in operation, (and 36.94 miles of sidings,) 111 miles of which has been completed since the date of their last report. On the 8th March last you accepted 127 miles of this company's road.

Denver Pacific Railroad stock to the amount of $4,000,000 has been subscribed and paid, being the total amount authorized by law. The receipts for the year ending 30th June, 1877, were, for transportation of passengers, $161,722.96; of freight, $171,165.29; miscellaneous, $2,880,65; total, $335,768.90. The expenses for said year were $189,370.20; leaving net earnings $146,398.70. The cost of construction and equipment of the road (106 miles) has been $6,495,350. The indebtedness of the company is $2,595,829.91.

INDEBTEDNESS OF THE RAILROAD COMPANIES TO THE UNITED STATES.

Under the act of 1st July, 1862, and 2d July, 1864, subsidy bonds were issued by the United States to six railway companies (Central Pacific, Kansas Pacific, Union Pacific, Central Branch Union Pacific, Western Pacific, and Sioux City and Pacific) to the amount of $64,623,512. These bonds, having thirty years from date to run, will mature, some in 1896, others in 1897, and others in 1898. The semi-annual interest paid on them will amount, at maturity of the bonds, to $116,322,321.60 at simple interest, and to $316,112,571.79 if compounded, or, the principal added thereto, $180,945,833.60 and $380,736,083.79 respectively.

WHAT THE PACIFIC RAILROAD COMPANIES HAVE PAID THE GOVERN. MENT.

Section 6 of the act approved July 1, 1862, provides that "all compensation for services rendered for the government shall be applied to the payment of said bonds and interest until the whole amount is fully paid." This, however, was amended by section 5 of the act approved July 2, 1864, which provides that "only one-half of the compensation for services rendered for the government by said companies shall be required to be applied to the payment of the bonds issued by the government in aid of the construction of said roads;" which amendment was confirmed by section 9 of the act approved March 3, 1871, enacting "that the Secretary of the Treasury is hereby directed to pay over in money to the Pacific railroad companies * one-half of the compensation

for *

* services heretofore or hereafter rendered."

The amount of one-half of transportation-accounts for carrying mails, troops, supplies, &c., which has not been paid to the companies, but which has been applied by the government to the payment of their indebtedness, and covered into the Treasury for that purpose, to October 31, 1877, is as follows, viz:

Union Pacific Railroad Company.
Central Pacific Railroad Company....

$3,657, 139 95

1,423, 555 74

The amount of one-half of the same accounts, which has not been paid to the companies, but withheld under provision of section 2 of the act approved March 3, 1873, whereby the Secretary of the Treasury was directed to withhold all payments, &c., and also under a stipula tion entered into as regards the Union Pacific Railroad Company, whereby the judgment against the United States in case No. 571, October term, 1875, of the Supreme Court, was not to be collected until after final judgment in the suit to recover sums claimed to be due to the United States as the five per cent. of net earnings, and which has been applied by the government to the payment of their indebtedness and covered into the Treasury for that purpose, is as follows, viz: Union Pacific Railroad Company.. Central Pacific Railroad Company. Kansas Pacific Railroad Company..

Western Pacific Railroad Company..

Sioux City and Pacific Railroad Company...

Central Branch, Union Pacific Railroad Company

Total.....

Total amount covered into the Treasury....

$1,299, 652 00 708, 611 62 224,635 75

1 25

31,267 34

21,048 22

2, 285, 216 18

8,756, 413 52

In addition to this sum, the amount of transportation-accounts rendered by the companies for services performed, and which remained unpaid October 31, 1877, for lack of proper appropriations or for reason that they were in process of settlement, is quite large, and, from the best information to be obtained, is as follows, viz:

Total amount paid and to be paid as one-half of transportation-accounts to October 31, 1877, is, on above basis, $7,703,697.34. The indebtedness of the companies to the government to October 31, 1877, is as follows, viz: