National Republican. (Washington City (D.C.)) 1872-1888, 1884-01-25
THE UNION PACIFIC.
Annual Report Of the Government Directors
Of This Railway.
Its Operations and Financial Condition
Status OF Its Land Grants,

one hundred pages of printed matter. After
referring to the charge made that heretofore
the management OF tho road has been re-
luctant to furnish information regarding tho
| Conduct of It's affairs. the directors state that
| during the past year they have found no such
unwillingness manifested. The report refers
| to what is known as the "tripartite" alliance
and statcs that in every instance their wish to
! have ample notice of meetings and OF pro-
| posed operations was complied with, except in
| the case of proposed ratification of this alli-
| anCe with tho Chicago and Rock Island and
| Chicago, Milwaukee and st. Paul railroad
companies concerning through business.
! This was by far the most important transac-
tion of the year. At the quarterly meeting
of directors of Dec. 12, 1883, no business was
transacted, as there was not quorum pres
| eut. All the government directors, however,
united in tho following resolution: "Voted
that we protest against the ratification of the
proposed contract with the Rock Island and.
| st. Paul roads until IL has been submitted to
aud approved by the board of directors of the
Union Pacific railroad company"
| The report says: There is no reason to
believe in this transaction that the executive
committee had any intention to usurp tho
/ functions of the full board The proceedings
/ seemed, however, to be of such importance as
TO require greater deliberation and more
formal action, and the steps above described
were accordingly taken,
The contract came up for ratification be.
fore the full board at the meeting of Dec. 20,
| 1883, aud no opposition was offered to il from
| any quarter, the government directors having
inquired into the legality of its provisions in
| "A letter addressed to Judge J. f. Dillon. the
solicitor of the company, and being informed
| that 1t in no way violated the charter of the
company, they consented to its ratification"
"a railroad war;" says the report, in
| which rates are cut below the point where
I frgi ba cd Mt ia la-
! structive to the business interests of the
community, no less than to the corporations
Immediately concerned. Steady and fixed
rates, even though they are high, arc much
more conducive to healthy and prosper US
condition than the unsettled and huctuating
rates, however low which are brought about
by the competition of railroads. 1t is conf
IDENTIFY hoped that the contract will be ac-
cepted as the basis of u permanent arrange
ment between all the roads concerned and
that under it the roads will do profitable
business while the communities along their
lines will derive permanent benefit there
from"
The funded debt of the company, after de.
ducting bonds held in trust and bonds in the
sinking fund on June 30, 1852, was S52 50S-
0j3.75, and on June 80, 1883, SS39i7,9sO.
showing an increase of $1,i39,92625. The
| investment account shows the amount of
stocks, bonds, and other securities held as in
vestments TO be S50933, ,4Sls4 Al ~. 1@.eir face
value from which the company derived an
income during the gear of s., III ,062. .sJ, and
from other Investment accounts there were
received SlOg79350, making a total of S2,2S1,-
| 1j63j. Yfhe floating debt statement shows
that the total debt under the United States
railroad commissioners view, on June 80,
Y 1852 was S10,754 S91,S7, and on juno 30, 1883,
| S6,l00,24o.6S. Under the company's view, on
| June 80, 1882, it Was $13,36s 5S7.91, on June
80, 1883, Ss,S4i, ,490.76 The total resources in
| s.I u - an
The reduction in the floating debt, the direc-
tors say, has been effected by pursuing the
| policy recommended in their last report
The policy of strengthening tho road by
extending aid to all branch roads to be
operated as feeding lines, and constituting
single system, has been pursued. Some of
these roads which were operated at a loss in
1882 show large profits during the past year.
The increase in earnings of all the trunk
roads is gradual but constant and gives great
promise for the future. The surplus earnings
and expenses Of the road and operated lines
for the ten months ending Oct. 81. 1883,
chow total OF 1881 6579i. This shows
decrease in the total surplus earnings during
the corresponding time last year of S695, ,4S0.
Owing to the improved condition of tho road
bed and equipment, the decrease in the run
ming expenses has been much larger proper
tonately than the falling off in the earnings.
The number Of miles OF roads operated was
4,340.
The original land grant to the Union Pa
cifc embraced, as near as may be estimated,
about 1l,200,OOO acres. The grants to the
Kansas Pacific and Denver Pacific embraced
nbont 7,004,000 acres, making o total Of 49,
100000 acres to the consolidated companies
OF tho original grant to the Union Pacific
S,S77,S92 acres remain unsold, aud of the
grant to the Kansas and Denver Pacific COM
. panes 5236,725 acres remain. There have
been sold and disposed of in the round mum;
Der of the whole land grant about 100000
acres for the sum of about $15 55O000O The
methods of sale are for cash, with q
l discount OF 10 per cent. on five OF ten years
time, in installmentso of one-dfth or one-tepth,
with annual in terest at the rate of per cent.
on deferred payments. OF the original issue
of so 400 900 worth of bonds, II is nderstood
that some $5,S00,000 have been Cancelled by
of the company's unsold lands is Sl7,500,000
without recommending any specific plan
the directors do not hesitate to say that, in
their judgment, some definite plan should be
adopted whereby the interests Of the govern
} ment and the company should be mutually
subserved, and provision made for such fair
and suitable division of the remaining lands
as shall best promote theS speedy sale
: and utilization. The net proceeds of the
sale Of lands in the Union Pacific grant was
$9,273,3 321 up to June 30, 1883, and of the
! Kansas Pacific and Denver Pacific grants
$5,007,s s6s. During the first six months OF
1888 the increase in the number of acres sold
over the number sold during corresponding
period in 1882 was l97051, and the increase
in amount received for sales was $603, 532.
, The report includes communication from
President Dillon, which deals with the va.
rious matters now before the courts that re-
late to the Union Pacific company 1t refers
TO n contemplated suit in the court of claims
to obtain construction of the Thurman act
and to tho pending suits by and against the
Credit Mobelier.
Tho only suits mentioned in which the
integrity of the cOmpany's franchise is di-
rectly assailod are in the nature of quo war
rauto proceedings brought by the state of
| Kansas
"Ihe bonds issued in aid of tho Union
> Pacific aud Kansas Pacific roads, secured by
second mortgage, fall due in 1895. They
amount in principal and unpaid interest to
nearly S50000,000 Unless some provision is
made to refund this debt upon satisfactory
basis, il is to be feared that the company will
not be able to meet its obligations, and th at
disastrous complications may result. To
avoid this it has been suggested that an
actuarial computation of the net amount of
those debts, principal and interest, at a ,er-
tain day, say July /, 1884, be made, and that
this sum be divided into 100 equal parts, the
company to issue 120 interest-bearing bonds,
payable one each six months, uuCil the whole
debt is extinguished."
| In concluding the directors explain the
cause of tho extraordinary length of their
raDnrt and ranaat THAR ax nf cnn-