Daily Los Angeles herald., 1884-09-18
The Woolen Mill Interest.
THE UNION PACIFIC.
Account or Earnings For the Last
Fiscal Year.


BosroN, Sept. l7.-At the quarterly
meeting Of the Directors of the Union
Pacific Railroad this afternoon, Presi-
dent Adams presented report, OF which
the following is a summary;
To The Directors Of he Union Pacific
Railroad.
In view of the many unauthorized
statements which have been put forth in
regard to the financial outcome of opera
tions of the Union Pacific Railroad sys.
tenn during the past year, it seems ad-
visable at this time to submit something
authentic. l have caused the following
statement, for the year ending June Both
last, to be prepared. The period GOV.
cred includes the last half OF the fiscal
year 1883 and the first half of 1884.
This period was one of general railroad
depression, more especially felt by the
Union Pacific system owing to the con-
struction of competing roads and the
prevalence of war rates during the
Twelve months in question. During this
most exceptional period, after paying
every fixed charge, including the re-
quirement of the company's sink
ing funds and all liabilities, the
earnings were sufficient to give
Surplus income to the system and the ap-
plioable dividends amount to 5.22 per
cent upon the company's capital stock.
The earnings excluding Saint Joseph
and Westerly were $26. .957. asa; ex
penses Excluding Saint Joseph and
Westerly $l5, ,6S2. .70l; taxes Excluding
Saint Joseph and Westerly 1922, 553.
Surplus earnings, entire System, $l0,-
452, 230; income from investments out
side of the system, S6l9,6l7; expend-
itures, 81, ,276, ,2lS, which deducted from
surplus earnings and incomes leaves
50. 795, 5,62S. Deduct United States re-
quirements and add the amount received
from Trustees under the Kansas Pacific
consolidated mortgage on interest &C.
count and balance of 50, l79, 70f ap.
plicable to dividends remains. The
liked charges of the Union Pacific sys
tem, including the estimated allowance
for taxes and payments TO the United
States, under the provisions of the
Thurman act amount to S799,000 per
month. During July, therefore (the
latest for which returns have been
received) the net income Of the Com
pany over and above all fixed charges
was at the rate of more than twelve per
cent. per annum Of the Company's capi
tai stock. 1t is proper to add that the
earnings OF the summer months are al
ways much larger than the winter.
Those Of the second half OF the year are
generally about twenty per cent. more
than those Of the first half.
The Oregon Short Line will be CON-
pleted TO Huntington, the agreed point
with the Oregon Railway and Naviga-
ton Compsay's road by October 10Th,
and by November lst connection will be
effected. There is every reason to be-
lieye that this will Immediately result in
n large increase Of traffic, both on the
Oregon Short Lipeapdthe Union Pacific.
The latter will thus be relieved OF the
heavy financial burden which it has
been forced to carry much longer than
was anticipated.
The land sales hayo been larger than
ever before after deducting the
cancellation of 4, l89, 400 acres
OF land for which 5,273,4s was re.
ceived. President Adams thinks that
expenditures on account OF the Nevada
Central Railway should be stopped. II
such payments were defaulted no injury
could occur to the Union Pacific beyond
possible loss OF property which was OF
no apparent service to Il.
The resignation Of the second Vice.
president and the general manager s.