Delaware gazette and state journal., 1884-01-31
THE UNION PACfFIC.
Report of the Government Directors
The Tripartire Agrecment-The
Financial Statement.

!
Report of the Government Directors
The Tripartife Agrecment-rhe
Financial Statement.
NEw YoRK, Jan. 24-The annual re
port OF the government directors of tie
Union Pacific Railroad Company was
transmitted yesterday to this Secretary of
the Interior. It is voluminous docu-
Tnent containing nearly 100 pages Of
| printed matter,
After referring 20 the charge made that
heretofore the management of the road
has bsen reluctant to furnish information
regarding the conduct of its stiairs, the
directors state that during the past year
they have found no such unwillinguess
manifested. II has been insisted by the
government directors that their repre-
sentative on the executive committee
should have ample notice of all meetings
of the committee and full knowledge of
all its transactions.
The report goes on to say Except in
a single instance our wishes in tins re-.
gard have been fully complied with, aud
even in this we are not prepared to say
that it was seriously attempted TO with.
2old fIom our representative in the com.
miltee knowledge OF the pending
transaction or to coDsummste il without
consulting him. The instance referred
10 was in the proposed ratification
of the 'Tripsrtite Alliance with the
| Chicago Il Rock Island and Chicago
Milwaukee & St. Paul Railroad Con
panies concerning through business
This was by tar the most im portsnt trans
action of the year. The ruinous competi-
tions on through traffic to which the
company had been subjected by rival roads
which practically parslleied the main line
Of the Union Pacific from Omaha to
Ogden, cutting Fates to ruinous
| figures bstweep these points,
while dividing under pooling
arrangement with the Iowa roads. The
profitable traffic between Omaha and
Chicago forced the Union Pacific to enter
into an alliance offensive and defensive
| with such other roads as would practi-
cally extend its lines to Chicago and give
1t fighting chance against its rivals.
| The negotiations leading up to this We're
entrusted to General Manager Clark and
are fully set forth in the report.
sat the quarterly meeting of directors
| OF December 18th, 1883, no business was
transacted as there was not a quorum
present. ALI the government directors,
however, united in the following resolu.
ton:
Voted that we protest against the ratifca-
| ton OF the proposed contract with the Rock
| Island and st. Paul roads until it has been
submitted to and approved by the board of
| directors of the Union Pacific Railway Com
pany. lSignedl ISAAC II. BROMLEY,
Secretary"
The report continues: "There Is no
reason to believe in this transaction that
| the executive committee had any iGten-
| tiOn TO usurp the functions Of the full
board. By the vote of the board, the
committees is clothed with full power to
perform this and similar acts aud they
we're only following precedents. The
proceeding seemed however, TO be of such
Importance as to require greater delibera-
tion and more formal action and the steps
above described were accordingly taken"
The tripartite agreement of December
5th, 1883, is here taken up and the
general terms stated by which the roads
mutually agreed 10 share in the through
traffic upon the basis of fixed per
csntsges. The contract came up Tor rat
ifoation before the full bosld st the
meeting OF December Both, 1888, and no
opposition WAS offered to 1T from any
quarter. The government directors
having inquired into the legality of Us
provisions in letter addressed to Judge
J. 4. Dillon, the solicitor OF the company,
and being informed that it in no way
violated the charter of the company they
consented to Its ratification.
subsequently by unanimous vote Of
tle directors, the general manager was
instructed to take all proper measures to
induce the other roads converging at
COnneil Bluffs, to wit: Tue Northwestern,
the Chicago, Burlington & Quincy
Wabash, st. Louis & Pacific, Sioux City
4 Pacific, to come into tho arrapgeme Mt
upon the same or similar terms. AT tie
date of the submission Of the report, II il
not known what action these roads will
finally decide upon, but it seerns obvious
that a union Of all the roads interested,
upon such basis as the one proposed,
would be- much more advantages to all
and to the general welfare, than COL
tiDuanGe OF the ruinou5 competition. A
railroad war, in which rates are cut be-
low the point where freights can be
carried at profit, is destructive TO the
business interesla of the commuaity, no
less than tLe corporations imme-
iia,ely concerned, Steady and
fixed even rates, even though
they are high, are much more conducive
10 healthy and prosperous business
condition than the unsettled and iluG
tuating rates, however low, which are
brought about by the competition Of rail
roads. 1t is confidently hoped that the
. contract will bs accepted as the basis of a
permanent arrangement between all the
roads concerned, and that under it the
roads will do a profitable business, while
the communities along their lines will
derivs permanent benefit theIeirom."
The funded debt of the company, atter
deducting bonds held III trust and bouds
in the sinking fund on June 30th, 1882
, was $S2 sos, ,053 10 aud June Both, 1858
, fS3,947 $50, showing an increase o
| IL ,439 1926 25. .
= The investment account shows the
, amount of atooks, bonds and other secur
tiles held as investment to ba $50 ,933,
a 4S0 40 at their face value, from whict
the company derived an income during
the year of 80, III 1862 s5 aud from Othei
Investment accounts there were recsivei
y 5l09, 1880, making total OF $22, Isl
u 756 35
The floating debt statement shows tina
the tue total debt under the Unitec
5 States railroad commissioner view oI
u June 30tb, 1882, was $40, 754 S9l 81, an,
g on June Goth, 1858, 81, 1893 ,24S. IS; uude
y the compspy's view on June Both, 1852
u it was 13,36S, ,5S7 81; on June Both, 1883
r 1884, ,49O rs.
q The Total resources in 1882 wer
o $40, 592 sl5 5s in 1883, 9,6SS 946 %
s The floating debt, under the company
e view, it will be- seen, has beea reduce'
8 "a 524 097. Is; while the offsets unde
L the same view have diminished onl.
!, 1908 $50 35; net reduction of 49, $40,
A 227.S0. This reduction, the director
J. say, has been effected by pursuing tn
8 policy recommended by their last report
=; .M The ship Canal.
a Congressman Hoblitzsll on Wedr 8 Ia
Il week addressed the House COMMITTEES o
y railways and canals upon the merits {
II theMaryland & Delaware ship canal as
means of chespsning transportation ftr