The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1884-09-18
THE UNION PACIFIC.
President Adams Gives Some Facts
and Figures.
Net Income Above all Fixed Charges,
5:22 Per Cent. in q Bad Year
other Information
Railway Items. Es

BosToN, Mass, Sept 1S-At the quarterly
meeting of the directors of the Union Pacific
railroad Wednesday afternoon, President
Adams presented report, Of which the fol
lowing is a summary:
To THE DIRECTORS OF THE UNION PACIFIC
RAILROAD COMPANY - GENTLEMEN: In
view of the many unauthorized
statements which have been
put forth, both publicly and pri-
vately, in regard to the financial outcome
of the operations of the Union Pacific sys-
tenn during the past year, it seems advisable
at this time to submit something authentic
have accordingly caused the following
statement for the year ending June 80 last
cluies the last half of the company's fiscal
year in 1888, and the first half in 1854.
This period was one of general rail
road depression. The depression was
more especially felt by the Union Pacific sys-
tenn, owing to the construction of competing
roads and the prevalence of a war of rates,
The influence of these new constructions and
the complication which grew out of them
have not yet ceased to be felt The twelve
months in question covered, therefore, as I'M
favorable a period as the Union Pacific sys-
TEN is likely to pass through It will, never,
theless, be observed, that during this
most exceptional period, after paying every
fixed Oh arge, including the requirements of
the company's sinking funds, and all liabili-
ties to the government, the surplus income
OF the system applicable to dividends
amounted to 52 per cent upon the COM
pany's capital stock. The earnings (exclud
expenses excluding st. Joe & Western), S15,
6S2, 70l; taxes Excluding st. joe & Westerly,
SS22, 552; surplus earnings of entire system,
$40, 452, 800; income from investments outside
the system, S6l96l7; expenditures, S7,276,-
2lS, which, deducted from the surplus earn
ings and incomes leaves SO, rs, CPS De-
duct United States requirements and add
amount received from trustees under Kan
sas Pacific consolidated mortgage on
interest account, and balance Of
So, l19, 704, applicable to dividends remains
The fixed charges of the Union Pacific sys-
tenn, including an estimated allowance
for taxes and payments to the United
States under the provisions of the
Thurman act" amount to S79S, 900 per
month. During July, therefore, the lst-
est for which returns have been received, the
net income of the company over and above
all fixed charges was at the rate of more
than II per cent. per annum on the COM
pany's capital stock. 1t is proper to add
that the earnings Of the summer months are
always much larger than in winter Those
of the second half year are generally about
20 per cent. more than those Of the first half
The Oregon short line will be completed to
Huntington, the agreed point of connection
with the Oregon Railway & Navigation
company's road, by Oct Is, and by Nov.
connection will be effected. There is every
reason to believe this will Immediately re-
suit in largo increase of traffic both
by the Oregon short line and tho Union
Pacific The latter will be relieved of a
heavy financial burden which it has teen
| forced to carry much longer than it was an
| ticipated.
The land sales have been larger than ever
| before, and deducting cancellation, amount
to 4, lS9, 400 acres. for which SIS, 2?3, 4S6 was
| received.
| President Adams thinks that the expendi.
lures on account of the Nevada Central rail
way should be stopped. If such payment.
were defaulted no injury could accrue to the
Union Pacific beyond the possible loss Of
property which is of no apparent service
| to it.