, 1884-09-18
A Creditable Showing For the
Union Pacific,
Which Has Safely Weathered
All Its Storms.
Speculations as to Secretary
Folger's Successor.
Union PACIFIC statement.

BosroN. September l7.-At the
quarterly meeting of the directors of the
Union Pacific railway this afternoon
President Adams presented a report Of
which the following is a summary: In
view Of the many unauthorized state
ments which have been put forth in
regard TO the financial outcome Of the
operations Of the Union Pacific system
during the past year it seems advisable at
this time to submit something authentic.
| have caused the following statement for
the year ending June 30. last, TO be pre-
pared. The period covered includes the
last half of the company's fiscal year of
1883, and the first half of 1884. This
period was one Of general railroad de-
preston, more especially felt by the
Union Pacific system, owing to the con-
Struction of competing roads and the
prevalence Of war rates. The twelve
months in question covered, therefore, as
unfavoAble a period as the Union Pacific
system is likely to pass through.
During this most exceptional period, after
paying every fixed charge. including the
requirements of the company's sinking
fund, and all liabilities to give a surplus
income Of the system applicable to divi-
dends amounted to q per cent upon
the company S capital-stock earnings, lex
Guiding st. Joseph & Westerly $26, $751;
4s4; expenses, Excluding St. Joseph 4
Western) sl6, 6s2,7 FOL; taxes, Excluding
St. Joseph & Westerly 1922, 552; surplus
earnings Of the entire system, $40, 452,
290. Income from investments outside
of the system, $6le, 6l7; expenditures,
1926, 2IS; which, deducted from the sur
plus earning and incomes, leaves So, 1885,
62s. Deduct United States requirements
and add the amount received from the
trustees under the Kansas Pacific %consoli-
dated mortgage on the interest account
and tho balance of So, l79, 7O4 applicable
to the dividends remains. The fixed
charges Of the Union Pacific system, in
Guiding an estimated allowance for taxes
and payments to the United States under
the provisions of the Thurman act, +"
amount to $793, 900 per month. During
July, therefore, the latest for which the
returns have been received) the net in
come 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 Summer months are
always much larger than the Winter.
Those of the second half of the year are
generally about 20 per cent more than
those of the first half.
The Oregon Short Line will be com
pleted to Huntington, the agreed point Of
connection with the Oregon Railway &
Navigation company road, by October
Is. By November / the connection will
be effected. There is every reason to be-
Geve this will Immediately result in q
large increase Of ~trafice both to the
Oregon Short Line and the Union Pacific,
The latter will thus be relieved of the
heavy financial burden which it has been
forced to carry much longer than wa.
anticipated.
The land sales have been larger thar
ever before, and, deducting cancellation,
the amount was 4, ls9, 400 acres for which
SIS, 273. 4s6 was received.
President Adams thinks that the ex.
penditures on account of the Nevada
Central railway should be stopped. L
such payments were defaulted no injur
could occur to the Union Pacific beyonC
the possible loss of property, which is o
no apparent service to it.
The resignation Of Second Vice Presi
dent and General Manager s. H.. Il
Clark, and its acceptance by the executive
committee, is finally touched upon. witt
a recommendation hat Mr.. Clark be EN-
ployed in some less onerous position.