commendable industry, intelligence, and thoroughness. A large amount of
testimony has been taken, and all the facts have been developed which
appear to be necessary for the consideration of the questions arising
from the condition of these aided railroads and their relations to the
Government.

The commissioners have, however, been unable to agree upon the manner in
which these railroads should be treated respecting their indebtedness to
the United States, or to unite upon the plan best calculated to secure
the payment of such indebtedness.

This disagreement has resulted in the preparation of two reports, both
of which are herewith submitted to the Congress.

These reports exhibit such transactions and schemes connected with the
construction of the aided roads and their management, and suggest the
invention of such devices on the part of those having them in charge,
for the apparent purpose of defeating any chance for the Government's
reimbursement, that any adjustment or plan of settlement should be
predicated upon the substantial interests of the Government rather than
any forbearance or generosity deserved by the companies.

The wide publication which has already been given to the substance of
the commissioners' reports obviates the necessity of detailing in this
communication the facts found upon the investigation.

The majority report, while condemning the methods adopted by those who
formerly had charge of the Union Pacific Railroad, declares that since
its present management was inaugurated, in 1884, its affairs have been
fairly and prudently conducted, and that the present administration "has
devoted itself honestly and intelligently to the herculean task of
rescuing the Union Pacific Railway from the insolvency which seriously
threatened it at the inception of its work;" that it "has devoted
itself, by rigid economy, by intelligent management, and by an
application of every dollar of the earning capacity of the system to its
improvement and betterment, to place that company on a sound and
enduring financial foundation."

The condition of the present management of the Union Pacific Company has
an important bearing upon its ability to comply with the terms of any
settlement of its indebtedness which may be offered by the Government.

The majority of the commission are in favor of an extension of the time
for the payment of the Government indebtedness of these companies, upon
certain conditions; but the