New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-01-10
RAILWAY INTERESTS.
A REPORT ON THE UNION PACIFIC.

WASHINGTON, Jan. 9.-The annual report OF
the Government Directors OF the Union Pacific Railway
Company submitted 10 the Secretary Of the Interior
today 1t is understood to have been drawn by Mr.
MeFrman, OF Iowa, Secretary to the Board and is signed
by all the members The directors criticize with consider
able severity the former management OF the road more
especially in the practices and policies OF the company
pertaining to the controversies with tho Government
those respecting the conduct Of the traffic department.
and those relating to Of tho features of its nan
cial management" The new management
Ia credited with making ian honest Of.
fort to eradicate evils heretofore existing"
This effort they regard promising substantial and
fectous results the execution of presently declared
plans and policies OF the administration in
way interiered with prevented" Stress Is laid upon
the Importance Of placing the responsible executive
management OF the road in the person OF the general
manager This has not been the heretofore and
there has been consequently conflict OF opinion between
the directory and the local management The Govern
ment Directors express the opinion that the Directory
have not been familiar with the requirements OF
the road and the scope OF It's interests They conf
dent that the Union Pacific directors immersed as they
have been In their private affairs, have not
sufficiently, in practical manner, acquainted
themselves with the interests in their keeping.
The present management is employing and applying
every device in the way of economy that scrup
ulous care suggest ingenuity invent. The mme-
date and temporary result of this has up
time very gratifying. 1t has had very perceptibe
effect the ratio of earnings to expenses.
The appropriately Of the road in the communities
ersed by 1t is made the subject of considerable comment
The directors say that with the change in the
presidency and management OF tho road have de
sire and expressed determination rectify this cond
ton and disabuse the public mind" 1t is without the
knowledge OF the Government Directors that the pres
dent and general manager recognize the necessity pop
uarizng the road so far they may though the obsa
Giles in the way Numerous
WILD DISTRIBUTION or THE STOCK.
An examination OF the stock holdings OF the Union
olfc develops very interesting and under present
circumstances. important features. Ii demonstrates
what may be generally understood, that it would be
quite public misfortune II the holders OF small lots
should by the permanently reduced value of the stock
DE discouraged and induced TO withdraw their invest
The capital stock is divided into COS shares
OF 100 each. The Boston stock ledger which, In 1875,
contained the names Of only % holders. representing
G712l shares now contains 5l45 names, representing
shareholder was FOG now it is A shares or the %
about l4o in each $50 OF those who hold stock today
we're not holders IN 1873 not one in $50
were owners OF stock in 1875" There are now 7,7i3
holders OF the stock In 1875 there scarcely
amounts. Now $3.50 OF this total OF 77I3 persons
held shares or less, 3il9 hold between 10 and 100
shares. 1913 hold between 100 and $50 shares 65 hold
between 2jl and 500, and 1876 hold than 800 each
These comprise women 0nainly in New England. 2.3l6
holding Ol6 shares trustees and guardians 327 hold
ing 9.G72 shares and banks hodng collateral 500
| shares. The NevIork Stock Ledger shows more
nearly approximate condition than generally supposed,
at least frequently asserted. OF the 375502 shares
registered in NewYork. President Adams upon careful
computation expresses the opinion that no more than
l2s SOB are held on speculative account careful
shares are held by small investors 12 036 by large
vestors, whose holdings have not greatly varied. and
Of The entire capital Of os s5 shares now ontsanI1s
12-sG3 only are held on what Is known as Wall street
account The large proportion OF the shares held
by investors VAS acquired at more than 500 and
O., tha
is assuming enormous proportions. Nearly every
ceivabo question connected with the transportation
problem coming to be involved IN this sue betw ,hs
company ana the Government. During the period Of
prosperity OF tho road which Is described az some length
IN the report the bonded aud floating debt inccas-
20 he rnmisifion of lateral lines or nntiI
the aXiIAufn Of the companys bonded stock and nOat
ng indebtedness reached IN the present fiscal year.
reached June 30. 1851, the enormous OF Si3l no.
O2O The assets 10 meet this We're CassSl I92V70 COM
pany's stocks aud bonds. S2O123j3; sinking fund in
hands of tristscs $4,000 and bills and accounts
ceiyablc - 9l3fl9, making net debt Of S690O,l77.
traon this nct debt was reduced mp 10 September 30
by 81 7636~, or 10 50 $4,000. This is result over
which The administration Is disposed TO congratulate
itself. In Of the commercial conditions and the
complications which spring from chance OF administra-
The rate OF decrease OF TINS debt was about $780,
during each Of the months Of October and Novem-
bcr It's reduction was contamination 90 which the
new mana cement specifically and strenuousiy addressed
ITSELF large proportion Of tue items which serve 10
swell the floating debt OF expenses Incurred In new
construction and advances on mat account inc al
yauccs 10 other roads IN process Of completion and
- .i7 ugJ The company holds a majority OF the stock
and bonds Of nearly all its branch lines.
SINKING FUND RECOMMENDATIONS.
The company respectfully protests that tho invest
ment OF such sinking fund for the benefit OF the Gov
eminent or credtors has been accumulated is
inst 20 IT, The fund is not invested the full
measure of It's ability II tends, therefore, in prac
teal degree 20 relieve the debt OF the stag
gcrng proportions IL VIII nave assumed "hen
the time arrives Tor It's paJiheht IL INC present
policy percentage upon net earnings and the invest
inent the in sinking fund is To he pursued,
additional measures must be adopted Inc sue
ce,sl working Of the policy presuppOses two things:
s proportion OF the net earnings and the investment or
that amount TO accumulate with reasonable
rpdity But the government to be reimbursed out
az ho earnings the Government Directors venture the
suggestion that in fact department OF the Govern
may be- until some competent Commission or Govern
ment Directory is empowered by law TO supervise con
and operations OF the company. Aside from
this being mpraotcabe, there Is grave doubt whether
the results would then be satisfactory espe' tally the
Government and public. This far the reason that COW
dtons. which this year might prompt and enable the
might render such concession physiral ana financial
ut the Government Directors by assured
that tins the view 10 be taken OF this matter The
financial condition "a matter which should be considered
of more Importance than the immediate recovery fits
Jebn is thai tie control management and operation OF
this road should lie in honest rs well as competent
hands IL should Of all railways in the country be
ocsroIod i'm tho interests OF the public The suggestion
thot seems from careful and intelligent possible,
survey of this natter the most feasible pan Is one that
settles, or would settle the most speedily and perma-
neny this wnOle question and Obyiate all the difficulties
which suri onnd IT, t is that instead OF the present re-
quirere OF tho Government OF certain percentage OF
net earnings nxed sum be agreed upon. which the com
pany would DO compelled to pay at stated intervals,
toward the interest and principal OF its debt to the Gov
crnment il the supreme Court has decided that
the company not be compelled To pay either the
nrncpa or rterest before the maturity OF the bonds,
hut docs not seem possible that the company con-
reasonable terms are imposed upon IL. In liking such
stated srIn the Iaw-Inaking power resolve upon
ust and INTELLIGENT figure with or without consultation
with the company keopng in view the financial condi-
tion and abilities OF the company and having due regard
the communities ami commerce that
Will he Affected This plan would necessarily effect the
Immediate and complete suppression OF all present con-
"A "a a. An