The New York herald., 1879-12-18
THE UNION PACIFIC RAILROAD.
Annual Report OF the Gov
ernment Directors.
THO ROAD BED And ROLLING STOCK
General Outlines of the Busi-
ness Discussed.
RECEIPTS AND EXPENDITURES.

The government directors of the Union Pacihc
Railroad Company have submitted to the Secretary
OF the Interior their report for the 1879. which
contains interesting aud detailed account Of their
annual inspection including road bed rolling stock.
workshops. rolling mill. accounts. &c. In prefacing
the report the directors say =
From the lst day of July. 1861. when the act of
Congress was passed Incorporating the Union Pacific
Railroad Company. up TO the 7th day of May. 1878,
when the Pacific Railroad Funding bill became
law, there had been continual conflict between the
company and the United States government The
point in dispute has been in what way. ut what
times and in what sums the debt to the
government should be paid The Funding
bin settles these questions and declares that
the company shall pay $S00000 annually
to the government in addition to one-half
the earnings on government account. sum
per cent OF net earnings, all to establish o sinking
fund with which to pay. Mt its maturity. this whole
indebtedness.
The road bed is mentioned being in greatly i'm
proved condition. The track Is referred to as fol-
lows:-
The policy Of the company in the renewal Of its
track with steel rails has been changed Last year
an annual renewal Of one-tenth was thought sde-
quate. Our report then rendered criticised the lat
ter policy. Fifteen thousand five hundred and
twenty-six tons OF steel rails have been laid on the
western half of the road and Ala tons are to be
laid before the 1st day Of January next. making
10000 tons in all. equal to about two hundred and
twentyeie ht miles OF track the present year. This
will give 5l1 miles OF steel rails of good quality in
the main track. or about half the line. =
than in any year before. Twenty thousand tons
more Of steel rails have been purchased con-
racted for at the date Of this report and will be laid
this year. The road will then have about seven
hundred and thirty nine miles of single track steel
rails atout three-fourths of it's length The eastern
tors have had authority to test the quality Of
these steel rails.
THE ROLLING STOCK.
The rolling stock Is spoken Of az in good condi-
baggage and sleeping cars and 3.21e freight cars.
The increase of freight business especially during
the latter part Of 1879. has made it necessary to
have more cars. Over 100 new stock cars have
been ordered. and now building in part
at the shops Of the company at Omaha
also 100 new freight cars and $50 box
cars. The books also show that ten new en-
gines all ten-wheeers, Of uniform pattern made ut
Taunton. Mass, have been put ON the road since
January /. Thirty more new engines of the best
kind have been contracted for at the low prices
last year. and will be running. II bought at
present prices these would cost probably $4,000
more. Seventy-two engiLes have spark arresters.
These are marked addition to the comfort Of trav-
ellers.
GENERAL IMPROVEMENT
The company are making great improvements and
additions the water supply not only at
tions. but also ut other points. Great improve
ments spoken Of as having been made in q num-
ber of the station houses during the year. In this
connection the report says
The new depot at Council Bluffs deserves special
notice. All east and west bound passengers change
cars 1T this station. The rooms for reception and
for Offices large and convenient. The upper
stories are used for hotel purposes and afford q
revenue Six lines Of roads ind = station here COM
mon to all. The Chicago. Rock Island and Pacific
the Northwest; the Chicago. Burlington and
Quincy; the Sioux City and Pacific the Kansas City
cc all contribute to the support OF this station by
the payment OF annual rental to the Union Pacific.
road one of them. at Omaha, having . capacity to
feed aud water 1000 head of cattle daily; ana the
other. at Council Bluffs. with capacity to iced and
water 900 daily.
1t is thought by the directors that more attention
should be given the of cattle transi both
for the sake Of humanity and to preserve the quality
of the beef until 1t reaches o market
EXPRESS BUSINESS.
The company does all express business on the
main line and the feeding other lines directly
controlled by it. Every employe becomes express
agent without expense. The profits from this bust
ness are now $4,000 monthly. The entire
cost of managing the express business o
the Union Pacific Railroad does not ex
ceed twelve per cent Of its express re-
coipts. millions Of dollars" the report say s.
(which should form part OF the income Of rail
roads drawn of by express companies" and
'.where contracts between express companies and
railroads still in force and can be terminated
only on notice steps should be taken to terminate
kind railroads should by purchase control all ex
press business them.
LANDS DISPOSED OF.
During the year ending November 1. 1879. the com
pany has sold 220.7S1 9l-100 acres Of land for
s936.ss3 70. Emigration to lands along the line Of
the road is very large and in Of last years
Agents in Sweden and Norway and elsewhere
abroad. who have been sent out by the company to
give correct information to persons desiring to emf
CRATE.
After careful consideration tho directors do not
recommend any change which would give all the
lands side of the road to tho company and
leave the government all the other side. Such q
course would create endless confusion. Titles are
settled and locations have been made under the pres
ent arrangement. besides either the government
or the road would almost certainly suffer injury by
a distribution As now divided good lands and bad
lands are shared about alike. The company arc
making great efforts to secure immigration and to
those who wish to examine or purchase they offer
great Inducements in the way OF cheap transporta-
ton, low prices and liberal terms OF pay mcnt.
FINANCIAL CONDITION.
Tho road Is in a prosperous condition and
promises this year to show gross earnings OF over
SIS, 100000. with operating expenses reduced to
about forty-two per cent of earnings. But OF the
not earnings IL can. III our opinion. pay Its bond
holders their interest and comply with the directions
OF the Funding b which sets apart twenty Ave per
cent of Its net earnings ana stu leaves the stock
holders aud half per cent Quarterly dvi-
dcnds of one and half per cent are already made.
BRANCHES OF THE MAIN LINE.
The policy of the company has been to foster it's
branches until they become sclfsustaining. This
is good policy, since. for example, on through
traffic with points on the Utah and Northern u
gives the Union Pacific haul over the entire line.
Large shipments that formerly went via the Mis-
River to Fort Benton. and were distributed by
wagon trans portaon from that point distrib-
uted from the terminal station of the Utah and
Northern. The company leased in March last the
Colorado Central Railroad for term OF nifty years
and guaranteed that thirtyve per cent Of the gross
earnings should DO applied upon the securities OF
the road. This leaves sixty-hve per cent to equip
main lines and operate the road. '
1t has been suggested ia Wow of the contingency OF
the branch feeding lines becoming connected with
other main lines OF railway and thus diverng their
business from the Union Pacific. IL may be good
policy for the government to invest the sinking
fund in hrst mortgage bonds of tho branch lines
bearing seven per cent interest, IL satisfactorily
guaranteed by the Union Pacific. and thus secure to
the attor the business of said lines until the debt to