Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1884-01-30
RAILROAD COMPETITION.
what the Government Directors have TO
Sow About the union Pacific Road.

x,-,,a4 tho Government Directors Have to
Saw About the Union Pacific Road.
Nrw YORK. January 24.-The annual
report of the government directors OF
the Union Pacific Railway Company,
transmitted yesterday to the secretary
of the interior, is voluminous docu-
ment, containing nearly one hundred
pages of printed matter:
referring to the charge that heretofore the
management of the road were reluctant TO
furnish information regarding the cohducI Oh
its affairs the directors state that during the
past year they have found no such unWllllng-
ness manifested. 1t had been insisted by the
government directors that theu repre-
Sentative in the executive commit
tee should have ample notice OF all
meetings of the committee ana tull
knowledge of all its transactions. The report
goes on to say: Except In single instance
our wishes in this regard were fully compiled
with, and even in this one we are not pre-
pared to say that it was seriously attempted TO
withhold from our representative knowledge
of the pending transaction or 10 con
summate it without consulting MN.
The instance referred to was In the
nronosed ratification of the tripartite alliance
with the Chicago and Rock Island and Chicago,
Milwaukee and st. Paul Railroad Companies,
concerning through business. This was by Tar
the most important transaction or the year.
The competition Onthrough traffic to which the
company was subjected by rival roads
which practically paralleled the main
line OF the Union Pacific from
Omaha to Ogden, cutting rates to rum
Gus figures between those points. while Ovid
ing under pooling arrangement with the Iowa
roads, the profitable traffic between Omaha
and Chicago, forced the Union Pacific to enter
into an alliance, both offensive and
defensive with such other roads as
would practically extend its lines to
Chicago and give it fighting chances against its
rivals Negotiations leading up to this were
intrusted to General Manager Clark and fully
set forth in the report at the quarterly meet
ing of the directors December II, 1888. No
business was transacted as no quorum was
present. All the government directors, how
ever. united in the following resolution:
Voted that we protest against the ratification of
the proposed contract with the Rock Island and St.
Paul roads until it is submitted to and approved by
the board Of directors of the Union Pacific Railway
Company. (Signed,) ISAAC II. BROMLEY,
The report continues: "There is no reason
to believe that in this transaction the execu-
tive committee had any intention to usurp the
functions of the full board. By vote of the
board the committee are clothed with full power
to perform this and similar acts and they were
only following presidents. The proceeding
seemed, however, to be Of such Importance as
to require greater deliberation and more for
NAL action and the steps above described were
accordingly taken.
1.-THE Tripartite agreement of December 5,
1888, was taken up and its terms generally
stated, by which the roads mutually agreed to
share IN the through traffic upon basis of
fixed percentages. The contract came up for
ratification before the full board at meeting
on December Goth, and no opposition was
offered from any quarter. The government di-
rectors having inquired into the legality of its
provisions in a letter addressed to Judge J. E..
Dillon solicitor of the company, and being in
formed that it in no way violated the charter
of the company, they consented to its ratltica-
ton. Subsequently by unanimous vote of the
directors, the general manager was instructed
to take all proper measures to induce other
roads converging at Council Bluffs, to-
wit Northwestern, Chicago, Burlington end
Quincy. Wabash, st. Louis and Pacific and
Sioux City and Pacific, to come into the ar
rangement upon the same or similar terms. AT
the date Of the submission of the reports it is
not known what action these roads Will finally
decide upon. but it seems obvious that union
of all roads interested upon such basis as
the one proposed would be much more advan-
tageous to all and to their general welfare than
acontlnuance of ulnous competition. Arallroad
war in which rates are cut below point where
freights can be carried at profit is destruc-
tive to the business interests of community
no less than to the corporations immediately
concerned. Steady and fixed rates, even
though high. are much more conducive to a
unsettled and fiuctuating rates, however low,
brought about by competition between rail
roads.
It is confidently hoped that the contract will
be accepted as a basis for a permanent ar
rangement between all the roads concerned,
and that under its provisions the roads will dc
profitable business, while the communities
along the lines Will derive permanent benefit
therefrOm.
1.-THE funded debt of the company, after de-
Quoting bonds held in trust and bonds in the
sinking fund, June 80, 1882, was So, sos. 054
and June 80, 1888, S83, 947, $50, showing an in
crease of 81, 439, 926. The investment account
shows the amount of stocks, bonds and Other
securities held as investments to be S59, 933 ,480
face value, from which the company derived
an income during the year of s., 1868 anc
from other investment accounts were received
$109, 1893, making a total of 81, 281, 756. TIL
floating debt statement shows the total deb
under the Uuited States railroad commission
er's view, June 80. 1882, to have been SO, 754,
892 and June 80, 1888, sc, 199. 249. Under tn
cOmpany's view June 80, 1882, it was $13, 1868, So
and June 80, 1888, So. 844, 491. The total re
sources in 1882 were $40, 593, 615 and in 1885,
$9,6S8, 946. The floating debt, under the com
pany's view, was reduced 81, 524, 097, while off
sets under the same view diminished it Onl
S903, $685. The net reduction was So, 620, 226
This reduction, the directors say, was effecte
by pursuing the policy recommended IN thej
last report.