B. OFFICE OF THE UNITED STATES HOT SPRINGS COMMISSION, To the honorable Board of Commissioners in relation to the Hot Springs of Arkansas: GENTLEMEN: In accordance with your request, I have the honor to submit for your information the following table, which exhibits, in a condensed form, the appropriation made by Congress for the expenses of the Hot Springs commission, the disbursement, and the balance on hand November 24, 1877. NOTE. The expenses for November (estimated at $2,500) are not included in the statement of disbursements. Very respectfully, your obedient servant, C. C. F. LARRABEE, Disbursing Agent. Estimated expenses of the Hot Springs Commission from the 1st day of November, 1877, to Salaries of commissioners.. the 1st day of July, 1878. Salaries of stenographers and clerks Salaries of engineer and assistants, including office and field force. Material for engineering department Office rent, fuel, messenger, stationery, and printing. Contingent expenses Total.... Amount on hand November 24, 1877.. Showing a deficiency of........ Estimated expenses for fiscal year ending June 30, 1879. Salaries of commissioners.... Salaries of stenographers and clerks Salaries engineer and assistants (office and field force) Total..... $10,950 00 7, 120 00 7,000 00 2,600 00 2,500 00 30, 170 00 AARON H. CRAGIN, Commissioners. REPORT OF THE GOVERNMENT DIRECTORS OF THE UNION PACIFIC RAILROAD, FOR THE YEAR ENDING JUNE 30, 1877. WASHINGTON, D. C., October 12, 1877. SIR: Three of the government directors of the Union Pacific Railroad (Brewer, Millard, and Wilson) made the regular annual inspection of the road in the month of July last. The entire line was passed over and examined by daylight, and found to be in good condition. The Western Division had suffered severely from high water and wash-outs during the early part of the season of 1876, and the Eastern Division had suf fered much from like causes during the spring of the present year. The fall and flow of water on the two divisions had been unprecedented, and it was a gratifying surprise to find them in so good condition when the inspection was made. The general condition of the road, shops, equip. ment, &c., was quite satisfactory. The improvements, which the government directors have noted and reported from year to year, indicate the steady advance of the road toward the standard maintained by firstclass roads in the Eastern States. During the year ending June 30, 1877, the company expended for the renewal of rails $504.827.13; and in the month of July of present year, $147,244.73; total, $652,071.86. Since July 1, 1876, there have been renewed 5,154 tons of steel rails to August 1, 1877, and during the month of August 985 tons; or, in all, 6,139 tons; and it is expected that an aggregate of 140 miles will be reached for the year 1877 before its close. Steel rails are being placed on the heavy grades and mountain divisions. From 1st of March last to August 1, there have been rerolled at Laramie mill 4,942 tons of iron rails, at a cost of about $15 per ton. On the lighter grades, bad iron is being replaced with the rerolled rails. For the year ending June 30, 1877, ties have been renewed as follows, viz: Pine, 410,721; hard wood, 89,424; total, 500,145; and the renewal is constantly going on. In the same period of time the company has constructed at its shops: Outfit and boarding cars, 4; small baggage-cars, 2; box freight cars, 42; total, 48. The company has not a sufficient number of cars of its own to meet the demand for shipment of cattle, but the deficiency is met by the roads leading from Council Bluffs to Chicago sending large numbers of their cars out to points of loading on the Union Pacific Road. The company has long needed commodious and safe general offices at Omaha. This want is now being met, and when the work on the building shall have been completed the general offices of the company will be exceedingly well and safely provided for. There had been expended on the general office building at Omaha to August 1, 1877, $13,468.38; amount additional necessary to complete it, $27,000; total, $40,468.38. The building will be amply provided with fire proof vaults for the safe-keeping and preservation of the company's records, books, papers, &c., and will be very complete in all of its appointments. The decision of the Supreme Court of the United States, hereinafter mentioned, having determined that the eastern terminus of the road is or the Iowa shore of the Missouri River, and requiring the company to operate its road to said terminus as a continuous line, rendered it necessary for the company to provide a building thereat for the accommodation of its large and growing business, and for the comfort and convenience of the public. The work is under way and rapidly progressing toward completion, and the company has expended on the same to August 31, 1877, $13,208.68; amount required to complete it, $70,000; total, $83,208.68. This work is necessary, and the outlay judicious, as the want of proper accommodations at the terminus of the road has been a constant source of complaint. During the month of August the Missouri River bridge sustained serious damage. A wind-storm of almost unparalleled force carried away bodily, and cast into the river, the two eastern spans of the bridge. Fortunately, neither the abutment nor piers were injured, and the company at once put in a temporary structure for use until a permanent one can be put in place, which will be done without delay. The accident interrupted business for a time, and occasioned considerable cost to the company. On the 18th of September trains commenced crossing on the temporary structure, and there has been no delay since that time. The temporary structure will cost $31,216.78; amount necessary to replace permanent structure, $50,000; total, $81,216.78. A large expenditure has been made for the protection of the Missouri River bank on the east side. This was required for the preservation of the eastern approach to the bridge. The total amount expended for this purpose to August 31, 1877, is $190,992.14, and the tendency of the river to encroach upon its banks will require constant watchfulness and a continuous expenditure in greater or less amount. During the present year the Missouri River made a "cut off" just north of the cities of Council Bluffs and Omaha, through which an exceedingly rapid and forceful current was set directly against the west bank of the river, threatening the large general shops of the company. The company has expended $30,000 to avert the present danger, and a subsidence of the water has, for the present, afforded relief; but a large expenditure will be required to protect and preserve the shops in their present location. The work will need to be substantial and thorough, and will probably cost about $250,000. The city of Omaha and the Omaha Smelting and Refining Company are both directly interested in averting this danger, and will doubtless provide for the greater part of the necessary outlay. If this should not be done, then the railroad company must elect between paying the entire expense, with the risk of ultimate failure, and a removal of its extensive shops to a more secure locality. In either event the cost to the company must be considerable. It is the purpose of the company to replace the present wooden bridge over the Loupe Fork of the Platte River with an iron structure; but the estimate of cost is not yet received. In 1869 the then management of the company contemplated farming out the express business over the road to Wells, Fargo & Co. This was objected to by the government directors, and finally, on motion of Mr. Wilson, (then and now a government director,) the company resolved to do its own express business. The result of this action has proved most satisfactory. The earnings from that source have been as follows, viz: The expense, loss, and damage account has been exceedingly lightprobably in all, to date given, not exceeding $250,000. In the mouth of September of the present year a loss fell upon this department of the company's service of some $60,000. A band of train-robbers stopped the express-train, robbed the express car, and carried off about the amount stated of money being forwarded east. About $20,000 of the money has been recovered to present date, and every effort is being made to recover the remainder. In making the recovery mentioned, two of the robbers were killed. It would have been well for the company had it pursued the same course with the s'eeping-cars on the road that it did with the express department. But, instead of doing so, it contracted this interest away at a very early day in its history. The Pullman sleepers were put upon the road under said contract. The terms of the contract were most favorable to Mr. Pullman. He furnishes the cars, conductors, and porters. The railroad company keeps the cars in repair. The total amount expended by the company for repairs under the contract from time the cars were placed on the road to the present time is $444,595.21. During the last year the amount expended on reconstruction and repairs was $14,764.32. It would have been far better for the company had it placed its own sleepers on the road, and run the same to its own profit. The present management is anxious to be rid of said contract, and certainly will not renew it, as it is now plain to be seen what a grave mistake was made by entering into it at all. The contract will expire October 1, 1882. As stated in former reports of the government directors, the company is operating its own coal-mines. The coal produced during the year was 264,779 tons, at a cost of $1.29 per ton on cars. Of the amount produced the company used 183,337 tons, and sold for general use 81,442 tons. The land granted to the company is mortgaged to secure the payment of the land-grant bonds. Number of acres sold, 1,341,779.30; amount due company on contracts, $3,049,134.53. Principal received, $2,618,293.71; interest, $442,681.79; total, 83,060,775.50. Acres sold during last year, 67,971.53; average price per acre, $2.92. In view of the grasshopper-scourge which has afflicted Nebraska for several years past, the number of acres of land sold by the company during the last year is a gratifying surprise, and now that the scourge seems to have passed away, and immigration is again pouring into the State, the sales in the future must increase rapidly. The amount of land-grant bonds originally issued was. Amount retired from sales of land....... $10, 400, 000 00 7,374,000 00 3,026, 000 00 Undoubtedly the land-grant will retire the land-grant bonds, and leave a large surplus over for the extinguishment of other indebtedness of the company. The number and class of employés of the company is as follows, viz: This statement does not include coal-miners, nor men connected with the Laramie Rolling-Mill, but only railroad employés proper. In their report of last year the government directors criticised the action of the company in reducing the track-force, and said: "There has been too great reduction of the section-gangs, which should be increased by from one to three men to the gang on the greater part of the line. In reducing the track-force, the company has but followed the policy adopted by most railroad companies since the panic of 1873 and the unfriendly legislation of several of the States. There has been a general effort to economize all round, which is well enough in most respects, but in the one indicated is a mistake." The foregoing statement shows that the company has heeded this criticism, and placed 1,250 section and track men on its line of 1,038 miles, or more than a man to the mile. The floating debt of the company June 30, 1877, was as follows, viz: The company hold other assets, which, after eliminating from its state |