New-York tribune., 1874-12-15
THE NATIONAL INVESTMENT.
Union PACIFIC RAILROAD PROSPECTS,

UNION PACIFIC RAILROAD PROSPECTS,
REPORT OF THE GOVERNMENT DIRECTORS TO SEC
RErARY DEIANo-A PREDICTION THAT "As
NATIONAL INVESTMENT THE ROAD WILL PAY
THE GOVERNMENT TO BE A GAMER BY TIE
SAVINGS EFFECTED ITS EXPENSES ALONE
TuE NEED OF A LOCALIZED MANAGEMENT FOR
THE ROAD.
SIR: In the month of August last, the Gov
ernmcnt Directors of the Union Pacific Railroad made
their annual inspection Of the entire line OF the said
road and submit ths report of the results of their
visitation. The entire line afforded evidence of steady
and substantial Improvement, and OF the competency
and fahnuess OF the General superntendents Depart
mcnt OF the service The head OF said Department and
bic several assistants do most carefully and satisfac
torily discharge the powers and duties devolved on
them, and fully impressed with the belief that
vested in the General superintendent
TIE Company would derive advantages therefrom.
In report Dec. 1873, called attention TO
certain difficulties relating the lands granted by the
United States 10 the Company These difficulties arose
from order ISSUED by predecessor in 1869, sus-
pending issuance of patents for the lands TO the
Company and involved the entire question OF the power
OF States aud Territories in which the lands lie to tax
them for local purposes This question was carried into
Congress during the last session. and variety OF meas
ures were proposed TO render the uDpatented lands
Eahc 10 such taxation. Some of the measures we're
harsh in terms, and would have been mschievous IN
operation n enacted by bringing into the land system
OF the Government exceptional and unusual principles
and rules aud rendering titles TO vast bodies Of land
complicated aud uncertain. Happily the for such
scton the lands of the Union Pacific Road has
removed by the recent orders of the President
directing patents be issued to this Company for its
hands.
LAND PATENTS TO BE ISSUED TO THE RAILROAD.
This order understand, vas based on a report TO
The President by special Commission appointed during
past Autumn The purpose Of the Commission, as we
nfor ned ascertain whether or not the Union
Pacific Railroad completed as required by law, ana
especially determine If certain improvements and ex-
pendiurcs recommended by the Special Commission OF
"emuent citizens" their report OF Oct 30 1862 had
been made. The Commission of 1869 had recommended
thar certain "defciences" enumerated In their report
be cure 10 be supplied by the Company in order TO
pu ts road IN the condition OF completed road within
the meaning OF the several acts OF Congress relating
thereto. Toe estimated cost Of said deficiencies from
Omaha to Promontory $l5s6.lOO To secure the ex
pcDdiure of this amount recommended by the said
COmuiss0n patents to the lands Of the Company were
written TIe report of the recent Commission, we are
informed. states that the Company has complied with
requirements OF the Government under the report
Of 1863. and the report having been approved, the
patents ordered TO be issued TO the Company
TIE execution of this order Will settle the difficulties
surrounding the question OF local heretofore
audcd perfect the titles of many purchasers OF the
Compauy's lands. quiet the apprehensons Of a multi
iudc of settlers thereon accelerate sales and tend TO
more RAPID retirement OF the lanu-grdnt bonu-
EARNINGS AND EXPENSES OF THE ROAD.
Thc sros slas the road Tor the year eidng ,oo n
70 ib ,e.r nlile Jule 30 96359S5 90
o,,',, Sr,s for h ending 5oiS7l $5ii54Q9 .
Les .ap il'eIe., aud prnaP-l........... 226ll Os
r., TOT 4 @ js: So i.45:::. eaSs25Ss sss7 55555 g
Ke coc or H., ,c taag June 80 iS7l..... 5I5d970 30
Io DE ,c ending jane 30 ls73.......... 4e3j 6g5 50
lue Of 1874 over IS1G. @%IZ'o 4b
I. VeW All he fell
Of ;he country following the panic of pem
ber 1873 the results presented by the earnings OF the
road are gratifying.
The net earnings for the year ending June SO 1874
being S5I67O o. by deductng the interest on the first
Mortgage bonds (Which the Company claim should be
doLc) ana premium gold at 10 per cent s1,79642 we
That tine amount which the Government, for the
year would be entitled five per cent is s365932o 99
per this amount is Sl67e6G A For the year
ending August 81 1874 the Company sold on its granted
lands 269 2o acres, at price per acre OF
s. s,, making total amount Of sales OF S3l64i SO, OF
winch S2l274 rs was paid in cash, the balance OF
tl.l3C g Dcng evidenced by time contracts" The
amount OF cash secured during the period as ad
vance contracts S2ll9 70 and there
paid by Bond Department for collection of land
grant bonds and interest accrued same, $6SG9 &C.
Tie original issue OF land-srant bonds SO400O0O;
August o. lS74 had been retired 4i50O; balance
OF lauGaut bonds outstanding S99j50OO total number
OF acres sod August 81 1874 1O9Ol0 9GOO total pro
ceeds OF sales tnat date (cdsh and time cOnracts,
Ssl3Jl3 g. TAis statement would indicate that the
aicutuia aud grazing lands situated IN the State OF
Nebraska and included in the grant to the Company,
will be sufficient retire the landgrant bonds without
re-ard TO the remainder of the grant This does not n
elu any the coal lands belonging to the Company,
Dor those yielding Iron-bo,h classes being Of great
va uv. constituting part of the grant.
D.ung the pas year the Company has issued per
ce. fuJdiug bonds The of sO.54l 800. The
lai part of these bonds wit sOG228o0 have been
used IL retiring the 10 cent income bonds The n-
tome bonds ssued amounted to s9355,tOO OF income
bonds there is yet outstanding Sj86,OO0
Tie exchange OF funding bonds for income were made
a. SIX t. five that is to say SIX of the former were
gwen foi ave % the latter. We did not con
seat basis OF exchange, rega dcd aud do
Ell 70 gard, the funding bond the best securythe
incomes beng more or less than notes OF the Com
laIy Tie income bonds natured in September last
snd which they could be exchanged for the
SINKING fuuG bonds established to insure prompt
sxcGa1gc aud prevent emb rrassnent TO the Com
p4uy We tnlnk exchange might have been effected
At = lees rate ; tut this a matter Of judgment In
Whcn We were overruleI. The present market value
oI tLe sIukns fund bonds shows that correct
a. 1t Is about equal to that which the incomes com
handed
. LOCALIZED MANAGEMENT DEMANDED FOR TIE
ROAD.
We do not hesitate the opinion expressed
tormCr reports OF the Government Directors that the
Union Pacific Railroad. with localized business man
Agement with proper aud sufficient power, be made
all Of tho liabilities which rest upon IT, including
every dollar which the Government has invested in it,
Our tu0y Of the road Of ts aby to develop business
an through which IL passes and III regions
tributary line, ana Of the possible large increase
traffic, both domestic ana foreign
only cOuhruIs IN the belief that the road can he
MADE 10 III the fullest SUN that lite obligations may