Daily globe., 1883-02-21

WASHINGTON, Feb. 2O.-The government
directors of the Union Pacific Railway
company namely, G. G. Hovens, Issac H.
Bromley. W. Parish and Colgate Hoyt,
transmitted to the secretary of the interior
this afternoon their report for 1882. 1t
begins with long statement of the diff
culties experienced by the directors in
gaining information requisite for the in
telligent and faithful discharge of their
duties. But when the information was
gained the government directors say:
eve were agreeably surprised to find
from what we could learn
that the management of the road had been
prudent and wise in its affairs, and honest
ly and ably administered, its condition
and the prospects are good with nothing
to be gained from coneealment or evasion,
and nothing to be feared from publicity"
Upon tho same subject, later, the directors
say: "We repeat thsre is, in our iudg-
ment, no evidence of Wilful
violation, but only neglect
to comply with the requirements of law,
under a possible misapprehsnsion of the
official functions of the government direc-
tors. The report then proceeds to detail
the examination of the condition of the
road. The commissioner of railroads
makes the liabilities $219,965, 742; assets,
$226, $50; surplus, $585,638. 1t is claim
ed by the company that this statement
does them injustice by conveying upon
its face false impression
concerning the floating debt, in that it
does not state the proper offsets. Their
own statement of the floating debt is as
follows FLOATING debt as per report of
the commissioner of railroads for June 30,
1882, S1O,754, ,S91, to which should be added
the interest on first mortgage bonds, Cin-
Guiding July 1, 1882, coupens), $1,229,385;
interest on other funded debts, (inclUding
July /, 1882, coupons), $213,939; divi
dends unpaid, (including July 1,
1882. diyidends), $1,123,171; called
bonds not presented for payment, $47 900.
Total, $2,613,696. Gross amount of float
ing or unfunded debts, $13,368.587;
against which the resources of the compa-
ny, excluding investment accounts and
bonds and stocks of other panies ap-
plicable thereto, were as follows: Cash.
S1,57O,029; accounts receivable, $2,27S,-
404; company stocks and bonds owned by
com pany, S2,25O,94O; sinking funds
in hands of trustees, $117,558;
less applicable to funded
debts, $7,055,S47,; bills receivable
S67 ,564; due from other companies per
account traffic balance, S415,531; fuel,
material and stores on hand, $3,963, ,345.
Total, S1O,592,S15. Floating debt June
80, 1882, $277, SIT. The above statement,
they claim, contains the items of property
constituting the floating debt of the com.
pany on the date named, with such re-
sources and only such as are considered
the proper offsets to the same. 1t does not
include the so-called ''investnents' in
stocks and bonds of other
roads, which amounted to $55,195, $50, |
and from which the company derived the
net revenue of $1,173,532 during the past
year. From comparisons on statements
it appears that the commissioner of rail
roads is making no allowance for offsets,
and places the floating debt at $10.754,891;
while the company's officers are making
what they consider proper Offsets. exclu-
sive of so called Investments" place it at
$2,785,772. The discrepancy arises partly
from differences of opinion as to what
properly constitutes the Offset to
the floating debt, and partly
from differences in bookkeeping and in
the method of tabulation. The company's
statement, however, contains several items
not included in that of the commissioner of
railways, to wit: Interest on first mort
gage bonds and other funded debts; divi-
dends unpaid and called bonds not pre-
sented for payment, amounting in all to
$2,613,696. The difference of one day in
the date of the two statements
one being June 80, and
the other July L, accounts for the omission
of these items from the commissioners
statement, they falling due on the 1st of
July. The floating debt on the 1st of July.
1882, was, accordingly, $13,368,267 if we
omit from it the items claimed by the
company to be proper offsets to floating
debts. The company's stock and bonds,
owned by the company, amount to
S2,250,940; and its fuel, material
and stores on hand S3,963, ,345,
it will be found that the floating debt of
the company is $S,990,058. The floating
debt, Nov. 80, as submitted by the com
pany's officers, is $3,091,160. We feel we
should be remiss in our duty did we not
express our disapproyal of the company's
| officers IN allowing SO large Hoat1ng
debt to accumulate. The company
has not only large surplus of
earnings, but securities Of great value.
We are decidedly of the opinion that these
securities should have been sold in advance
of the requirements of the company
rather than that the company should be
exposed to the financial danger incurred
by borrowing on call and otherwise nearly
| $10,000O00. The saving of the small
fraction in price or rate of interest to
compensate for the risk involved by such
apolicy although it is undoubtedly true that
these securities have largely advanced
n value since their respective issues. The
government directors ask that in future
they be invited to the meetings of the
board of directors whereat dividends are
! to ha daclarad They daclara the road