18

It will be observed that, while the foregoing shows from the actual business of the Road that granted to the Company on the Road constructed repaid in full in less than four years from annual saving Government, this saving continues thereafter perma and all the benefits and advantages of the Railroad a secured, and the fifty per cent. of the total receipts of th ernment are retained until all interest and principal is by the Company.

And these are not estimates, but the actual results first year's business of the Road.

The amount of bonds issued by the Government Company for the length of road on which the abovesavings resulted, were $3,218,893, as shown by the c cate of the Auditor of the Company, (page 35) B there is a slight discrepancy between this amount and stated by the Register of the United States Treasury i accompanying certificate, $3,353,909-the latter, whi the largest, has been assumed as correct for the pr purpose.

TREASURY DEPARTMENT,

REGISTER'S OFFICE, May 7, 1868.

I certify that the amount of interest declared payable during the year 1867 upon bonds issued by the United States to the Union Pacific Railway Company, Eastern Division, was two hundred and one thousand two hundred and thirtyfour dollars and fifty-five cents ($201,234.55,) equivalent to one years interest upon an average amount of $3,353,909.16 U. S. six per cent. registered bonds issued to said Company; and that the amount of said U. S. bonds issued to said Company in all, to the 30th day of June, 1867, inclusive,* was three million three hundred and sixty thousand dollars ($3,360,000.)

J. A. GRAHAM,

Assistant Register.

* Or average date of the year.

QUARTERMASTER GENERAL'S OFFICE,

WM. J. PALMER, Esq.,

WASHINGTON, D. C., June 6, 1868.

Treasurer Union Pacific Railroad Co., E. D.

*

Willards' Hotel, Washington, D. C.

SIR: Your communication of May 28th is received. In reply to your request that the Quartermaster General will certify from the records of this Department as to the comparative rates of railroad and wagon transportation on Route No. 2, by which the Road of your Company runs, and also as to the amount of transportation performed for the Government by your Company in 1867, you are respectfully informed that the records of this office supply the following information:

That the rates paid by Government for wagon transportation on said route in 1867, were as follows:

That during the same period, the average rate (based upon the Company's published tariff) paid by the Government for transportation over the Kansas Pacific Railroad, was:

Also that the rates at which Government has made its contracts for wagon transportation to New Mexico for 1868-9

The rates now being paid your Company by the Government are the same as for 1867; the average rate being ten and ninety-nine one-hundredths cents (10c.) per ton per mile.

*Route No. 2 is the constantly diminishing Road to New Mexico, which formerly began at the Missouri River; afterwards at Fort Riley; then at Fort Harker; subsequently at Fort Hays; and now, by the extension westward of this Railroad, is about to start from Fort Wallace, near the end of Government aid.