Statement showing the comparative cost of transporting Government Stores, Troops, and Mails, by Kansas Pacific Railroad, and by Wagons, for the year ending December 31, 1867, being the sworn statement of S. T. Smith, Auditor of Union Pacific Railway Company, Eastern Division.

Total number of tons freight carried, 22,853; number tons carried one mile, 3,500,420; average distance to ton, 153 miles; average rate per ton per mile, 10% cents.

The Government rate for wagon transportation for same period was as follows:

April to September, inclusive, six months, at $1.28 per hundred pounds per hundred miles.

October, November and December, three months, at $2.34 per hundred pounds per hundred miles;

Being an average rate of $1.63 per hundred pounds per hundred miles.

The above tonnage figured at this rate for the average distance, 153 miles, would cost the Government 32% cents

per ton per mile, or..............

The actual cost to the Government for transporting the above freight by railroad was 10% cents per ton per mile, or...................

Showing a saving in favor of rail transportation in that year of.........

$1,143,462 03

368,310_02

$775,152 01

The actual saving to Government in transporting troops. cannot be definitely arrived at; but taking into consideration the delay, cost of forage, subsistence, wear and tear

of public animals, and other expenses incident to marching, I think the saving to the Government may be safely stated at one-half the actual amount paid for rail transportation.*

The actual amount received for mail service

for the year ending December 31st, 1867,

was..

Average distance carried, 233 miles.
Average rate per mile, $149.53.

The contract amount to Barlow, Sanderson
& Co's Stage Line for mail service on this
route is $171,720 per annum for 774 miles,†
or an average rate of $221.86 per mile per
annum, at which rate mail service for 233
miles would cost the Government.....

$34,841 12

51,693 38

Exceeding the cost of rail transportation by

$16,852 26

The following recapitalation, based upon the foregoing statement, will more fully show the saving to the Government of rail over wagon transportation:

Showing a saving to the Government of nearly twice the whole cost of rail transportation for the year.

* Or the saving at one-third the cost of marching the troops.

†This should be seven hundred and seven miles, or an average rate of $243 per mile per annum, as shown by preceding certificate of Postmaster General, which increases this saving from $16,852.26 to over $21,000.

The average length of main line operated in 1867 was 2018 miles, making the liability to the Government, in U. S. Bonds, at $16,000 per mile, $3,218,893.

The interest on which, at six per cent. per annum, is......

$193,133 58 Deduct this from the total savings as shown.... 846,382 82

.....

And there is left from the savings... $653,249 24 A sum sufficient to discharge the bonds in less than five years. S. T. SMITH,

S. T. Smith being sworn, on his oath says, that he is the Auditor of the Union Pacific Railway Company, Eastern Division, and the facts set forth in the foregoing statement are true, to the best of his knowledge and belief.

(Signed,)

S. T. SMITH.

Sworn to, and subscribed before me, this 8th day of May,

The Auditor, Mr. S. T. Smith, has omitted to state that, of the amount, $511,908, of Government business done by this Railroad last year, only one-half (under the provisions of the Pacific Railroad Act) was paid to the Company; whereas, if the transportation had been done by wagon. trains, &c., the whole would have been paid in cash by the Government. This makes it necessary in order to ascertain the actual money saving to the Government last year due to the existence of this Railroad, (and of the contract between

the Government and the Company, based upon its aid,) to add $255,954,1% to the amount of saving shown by the Auditor.

The result is a total actual saving of cash expenditure to the Government for the year, of $1,102,336%, which would wipe out the interest and principal of the entire Government issue of bonds to this Road in less than four years.

ST. LOUIS, May 9, 1868.

Gen. WM. J. PALMER, Treasurer,

Washington:

DEAR SIR: Enclosed please find statement of tonnage of Government freight, and mileage of Government troops transported during 1867.

Respectfully,

S. T. SMITH, Auditor.

UNION PACIFIC RAILWAY, E. D.

U. S. Freight-Annual Statement of Tonnage for 1867.