The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-12-01
It's Debts, Resources. Present Condition and
Future Prospects-Re Recommendation as to
Action by the National Government
Report that Senator Edmunds Desires
Reconciliation with MI. Blaine
Minister DENLY and His Relations to HOosie.
Democracy How the Minister to Mexico
Conducts His Semi-Annual Drunks.
THE UNION Pacific.
Report of the Government Directors of This
Great Railway Property.


Report of the Government Directors of This
Great Railway Property.
WASHINGTON, Nov. 30.-Tne annual report
of the Board of Government Directors of the
Union Pacific railway was made public to-day
by the Secretary of the Interior. During the
nine months ending Sept. 80, 1885, the income
of the lines forming the Union Pacific system
amounted to $S. 118,02O, while the expenditures
were S., ,429, 092. During the corresponding
nine months in 1885 the income amounted to
$1,000, 008, while the expenditures were S., 797,
1885, United States requirements for the nine
months in 1886, placed against the surplus,
we're $500 900, ard for the nine months
in 1885 were $7S6,9s9 so that the
balance of surplus in the first
nine months Of 1886, less United
States requirements amounted to $21SS927,
against $475, ,2S2 during the corresponding period
of 1885. comparative statement of the funded
aud other debts of the entire system, covering
period of twenty one months, shows rapid i'm
provement, the directors say, in the financial
position of the company. From this statement
the following figures are taken: On Dec 81,
1884, the funded debt of the system in the hands
of the public amounted to $l44. 649,047; bonds of
the company in its treasury $3467. .4S7; floating
debt, So 237. GOT; total debt, $15l, ,354 231. De-
Quoting 500, 256. 800 land-grant assets there re-
manned at that date a debt in excess of land
assets amounting to $l22, ,O97, 1892 On Dec. 81.
1885, the statement shows the debt in
excess of land grant assets-at that date placed
at $780, 652 959-to have been $1lS. 14i 894, and on
Sept 80, 1886, the total funded debt is $l47 987-
450, with cash resources amounting to So, 772,-
904, and land-grant assets amounting to $40. .943-
981, thus leaving the debt Of the company in ex-
cess of land grant assets on the latter date $l15
27o $50, or about ST. 25O, 600 less than on Dec 81
1886
The directors say in their report that it must
be borne in mind that the Union Pacific rail-
way has completely changed in its character and
its sources of revenue within the last few years
1t was built as a transcontnental line, and ex-
pected to deriye its support principally from
transcontinental business but that bust
ness has recently been SO divided By the
completion of competing lines Of
which there are now six, that it furnishes but
but II per cent. Of the roads revenue. Like all
other great railroads of the West, the Union Pa
cifc must, in future. look almost entirely to the
development cf it's local business for its principal
revenue. 1t must occupy and develop promptly
the territory naturally tributary to its trunk
line. or see this taken possession of by rival
lines, and be left without business enough to
support it's main stems Its rival lines are alert,
rch and enterprsing. and are untrammeled in
their ability to raise funds, give guarantees and
to construct, buy or lease other roads. 1t will
be- therefore, to the best interest of the govern
ment, the directors in this connection add. and
greatly promote the growth and development Of,
the territory served by the Union Pacific, to have
the government place this road in an equally
favorable position number of additional
lines should be undertaken at an early day, in
order to reserve to the main line its due proper
ton Of territory.
The directors, in discussing the various propo-
sitions that have been made for the settlement
of the Indebtedness to the government, say that
since submitting their last report, in January
1885, the condition of the lines has changed only
for the better. Floating debts have been entire
ly paid off, the bonded debt reduced, aud about
100 miles of new and valuable feeders have been
built The property, as a whole, is of great and
increasing value. Criticisms upon the value Of
any of its branch lines. considered as independ-
ent roads, are misleading; and it should also be
borne in mind, they say, that in few years the
falling due of 6, and per cent. bonds in very
large amounts will afford opportunities
to effect very important savings of
interest by the issue of new bonds
at much lower rates. Should the governments
in any event have to assume the ownership of
the road, it could easily take up all outstanding
bonds with 3 percent government bonds, which
would reduce the fixed charges more than one
half. 1t seems, therefore. to the government
directors, beyond ali reasonable question, that
the security which the government will have for,
its debt is abundantly sufficient They there
fore recommend the passage Of the bill now
pending in Congress- unanimously reported by
the House committee on Pacific railways which
provides for the final adjustment of the debt in
seventy years, by the payment of $780,, 00Oa
year. in semi-annual payments.
In closing their report the board Of directors
express trust in the purposes and mark ed abili-i
ties Of the present managers Of the company.
Whatever the former management was, or what
gave rise to lack of confidence and friendliness
toward it, they think it high time in the inter
est of right understanding by the government,
so important to the right handling of its large
interest in the company, to draw the line at the
present management and at the present owner
ship of the property. It's management now is
honest, economical, able, aud these facts, they
say entitle il to DO regarded and dealt with with
out prejudice or disfavor.