Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1886-02-04
WASHINGTON NEWS,
The Report of the Government Directors
OF the Union Pacific X. X. Co.

WASHINGTON, Feb. 5.
The report of the government: directors OF
the Union Pacific Railroad Co, was received
by Secretary Lamar this afternoon The re.
port SAYS: salient feature in the relations
of the Union Pscifc TO the government is
that the road is a debtor to the governmen,
TO very large amount, the debt being Sc
cured only by second mortgage upon por.
tion OF the property of the company. Under
these circumstances there has grown up an
uneasiness on the part of Congress lest the
debt TO the United States might be faally
lost and legislation has been had 10 prevent
that result. But the legislation had so far,
1t seems, been admitted on all sides, as to
have failed of It's object and to have brought
about state of affairs which calls for an
early action. For some wears every secre-
tary OF the treasury, every commissioner of
railroads and every board of government di-
rectors has reported to Congress that the
Thurman act. under the conditions changed
since It's passage, is yearly looking up in
comparative idleness, large sums OF money
TO mutual loss and injury of the debtor and
/ creditors. In consideration of the various
new measures that will doubtless be proposed
nothing can be more important than that the
government should have as clear an estimate
as possible of the real value of the property
upon which its debtor carries, and of his
ability to bear il.
The following statement exhibits the en-
tire mileage of the system, including its fin
| ished branches, on Sept 80, 1885, and its
total liabilities for bonds and stock IN the
hands of the public, and its floating debt
In the bonded debt is included S35, l40, 900
in U. s. subsidy bonds. issued in aid of the
Unien Pacific and central branch, and SIG
564 ,33l, the balance of the interest on the
same, less the sinking fund in the hands of
the governme mt The debt aud stock per
mile of the Union Pacific Railroad and
Omaha bridge, QS32 miles). bonds and
United States debts, is S70,2l3; floating
debt 81 800; stocks SS3, 1870; total, Sl0i, ,S93.
Branch. lines, 3S0S miles bonds and United
States debt S9.263 stocck, S3,402; total,
Sl2 600. Union Pacific system, j, l40 miles
bond and L. S. debt, So 1898; floating debt,
S553; stock, Sl4 900; total S45, ,546.
But against this Indebtedness the COMPANY
has other assets than the road itself, consist
ing principally of land and land assets and
stocks and bonds of its branch lines and of
other corporations.
To arrive now at what the average mile of
the system Is worth in earning power, and
what annual charge is imposed upon it by
the above obligations we will take the bisi-
ness for the twelve months ending Sept. 80,
1885, and show the earnings OF the whole
system, and disposition made of the debt, and
earning power.
Union Pacific system, $40 miles per mile,
gross debt. bonded floating and United States,
$50 993; land and land assets, $3.50; net
debt, S25, ,963; stock outstanding, $4,000:
gross earnings, S5,577; net earnings, 81, ,l2i;
income from Investments Sl37 total in
come, S2,272; fixed charges and sinking
fund, 81 ,6Ol; net income, S665 United
States requirement, S220; surplus, S4i9.
Referring to the branch lines of the road
the report says The directors cannot EN-
phasze too strongly the value to the Union
Pacific of its auxiliary or branch lines, in fact
without them the main line would today be
bankrupt property. But valuable as present
the auxiliary branch system may be, il is far
below the developement which it must have to
properly occupy the local territory tributary
to the road and which will certainly be oc-
cupied BY its rivals if neglected by the Union
Pacific Ii is of the greatest importance to
the road and to the government, as to its
creditors, that the Union Pacific should be as
free as any of its competitors to build or
acquire branch lines or valuable connection,
otherwise it must be at fatal disadvantage
in competition for territory and future bus
iness. Asmatters now stand the debt of the
road is growing larger from year to year.
The board commends the plan of equalized
payments (Which has been adopted by the
Senate Judiciary committee in framing the
80 year bill reported this session..