New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-03-15
BANKING AND FINANCIAL.
UNION PACIFIC LAND GRANT BONDS.
49,. A. ~

o y,
NEW YORK March IA, 1871
The undersigned offer for sale at the current mar
ket prices for account of the parties who have pur
chased them, the balance of the Land Grant Bonds
recently held by the Union Pacific Railroad Com
pany.
The Union Pacific Railroad. running west from
Omaha, has now been in operation as through line,
in connection with the Central Pacific Railroad, for
twenty months 1t is i'll complete order, both In
track and equipment, and its earnings have aver
aged at the rate of eight million dollars per annum.
The following statement of the position Of the Com
pany is from the address made by Col. Thomas A.
Scott, upon his assuming Its Presidency In Boston,
March s. 1871:
"ln taking charge of this important public high
way as it's President in obedience to the unanimous
call Of it's shareholders and the action of your board
beg leave to state that so far my experience of
over thirty years in railway life can be made useful
to the board and the shareholding interest it shall
be freely given and trust the practical results may
in the future be found satisfactory. AS condition
precedent to accepting the position made the fol-
lowing requirements: First, that all unsettled con-
tracts for the construction and equipment Of the
road should be adjusted and paid. Second, that all
the floating debt Of the company should be provided
for natures by the actual sale Of assets on hand
applicable TO that purpose Both these conditions
having Dcen COHlpucu VIII, anu "a Satisfactorily
balance in cash and assets remaining in the treasury
to provide for contingent wants, accept the posi-
ton. and will endeavor to give it such time and
attention as may be needful in connection with the
board and It's officers, to insure proper manage
meit of the affairs Of the company.
In order that we may understand in brief form
the present condition of the company, L have made
tho following summary from the official records as
presented TO Inc by the heads of departments
Land OBSERVATION-DISCLOSURES per cent currency.
S1O4O00O.
Land Sales.-2020OO acres; proceeds $1,SO6,5CG
average price per acre. 50 &C.
ON account of these sales the company has
received ana redeemed d-gTant bonds TO the
For the remainder the company holds land-notes
maturing IN one two, and three years, with
aeoruiAS interest,". o6650
Total l,3l265O
"The condition of the land department may there
fore be stated thus:
Bonds. 100000
Principal reduced by bonds redeemed ...... s73s,OCO
Land Notes On hand ACKNOWLEDGEMENTS 6I6,65O
Showing an absolute reduction Of .. ... N,9165O
The company Is entitled, under the grants
from Government after deduCting total
lands prompted before passage Of the
From which deduct amount heretofore
292ss3 acres.
Leaving on hand as an acres.
which, at average value of two dollars per acre.
being twenty per cent below the minimum Govern
ment price for adjoining lands owned by it, should
yield the gross Of S9357l 234. So much thereof
may be required to be applied to the payment on
redemption of the land grant bonds and the balance
will 80 into the treasury received from time to
time, for the benefit of the stockholders, after the
bonds all redeemed the deed of trust requires
the trustees to use the entire proceeds from the sale
of lands in the purchase and cancellation Of land
grant bonds The average sales amount TO about
$4,000 per month.
From present indications 10 would
able tn estimate the gross receipts OF the com
ing year at minimum OF. <9,0OOO
with Cost OF maintaining and operating the line
on this increased earning OF not exceeding say i,COo
Leaving as net receipts 10 be applied 10 interest
and dividend, II so directed by the Board
elusive or the operations Of the land depart
The completion of the bridge across the Missouri
River at Omaha within the present year, and for
which the means have been provided by the sale of
bridge bonds as specially authorized by an act of
Congress, will greatly facilitate the movement of
traffic and relieve the public from the serious delay
and annoyance incident to transfer by ferry Tho
operations of the line for the first 20 months of It's
existence as completed road show net earnings