, 1884-01-25
The Tripartite Agreement Ex-
planned at Length.
Assets and Liabilities Shown
by the Statement.
A Good Showing Made by Its
Managers,
Union Pacihc's Annual Report.

report VI tn6 government directors Oh
the Union Pacific railway was trans
mitted yesterday to the secretary of the
interior, referring to the fact that the
management had heretofore been re.
luctant to furnish information In re.
gard to the condition of its affairs.
The directors state that they found nc
such unwillingness the past year, ex-
cept in a single instance, and hat of the
character known as the 'tripartite al
lance" which was the only attempt at
secrecy shown. The directors declare
that this wal by far the most impor-
tant transaction of the year. The CON-
petition on through traffic to which the
company has been subjected by rival
roads, which, practically paralleled the
main line of the Union Pacific from
Omaha to Ogden, cutting rates to the
Unions figures between these points,
while dividing, under pool arrange
meHt with 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 practically
extend its lines to Chicago and give it
a fighting chance against its rivals.
The directors at first voted not to
ratlfy the contract until the terms were
made known. The terms of the tri-
partite agreement were generally stated
December s, 1888, by which the roads
mutually agreed to share through traffic
on a basis of fixed percentages. The
directors voted to ratify on December
90, being advised that In no way con-
6icted with the charter of the COM
pany, and the general manager was in
structed to take all proper measures to
induce all roads converging at Omaha
to come into the agreement upon the
same or similar terms as the first two
roads named. The directors, up to the
date of their report, had not been ad-
vised of the action Of the other roads,
but expressed a hope that an agree
ment would be reached between all the
western roads to prevent cutting of
rates and a general Generalization of
values.
The funded debt of the company,
after deducting the bonds held in trust
and bonds in sinking fund, June 30th,
1882, was Ss2, sos, O54, and June Both,
1888, $50, 947, $50 showing an in
crease of 81, 439. 92e. The investment
account shows the amount of stocks,
bonds and other securities held as in
yestments to be $50, 933, 4sO, face val
ne, from which the company derived an
income during the year of S2,171, 1853,
and from other Investments and &C.
counts we're received 500, 1893, making
a total of $2,2s1, 756. The floating
debt statement shows a total debt, un-
der usual road commerce view, June
Both, 1882, of so, 1882 :; and June
Both, 1888, $3.50, 249. Under the
company's view, June Both, 1882, was
S13, 1868, 599 June Both, 1888, SO, s44,-
49l. Total in 1882, were
$40, 5s2, s15 in 1888, 1858, 946. The
floating debt under company's view was
reduced "a, 524, o97 /; while offsets un-
der same view diminished only $685.
$50. Net reduction $500, 22s. This
revision, the directors say, was affected
by pursuing a policy recommended in
their last report.
The policy of strengthening the road
by extending aid to all branch roads, to
be operated as feeding lines and consti-
tuting a single system, has been pur-
sued. Some of these roads which
were operated at a loss in 1882 show
large profits for the past pear. The in
crease in the earnings of all trunk roads
has Teen gradual but constant, and
gives great promise for the future. The
Oregon Short Line. which is intended
to connect with the Oregon Railway
and Navigation company, has been
considerably extended during the past
year.
The agreement with Willard, which
~ a. WIN bho SlCkOb
Navigation company to build a connec-
ton with the Short Line route, is given
in the report, and there is no doubt the
contract will be carried out.
The earnings and expenses of the
road and operated lines for the ter
months ended October 81, 1888, were
as follows:
Earnings Union Pacific rail-
way .S17 ,434, 90
All other branches. ....... 1887, 15t
10
Expenses of Union Pacific
railway o,o4f,Sz
All other branches. ....... 4,405,47
Total. ................s 13 $780, 80
Surplus earnings Union Pa
cihc railway. ............$ 9,0s9, %
All other branches. ....... 2,30l, 81