Los Angeles daily herald., 1888-01-08
Pacific Ra,Ircu Dis.

some TWO weeks ago tno Associated
Press cent cut, in manifold" by
mail, full cories of reports made by
the Pacific Railroad Commission,
With the request that these be with
held from publication until released
BY "wire" on their being prerented
10 Congress. These sheets were re-
ceived OF this Office and SO held. But
some Of the San Francisco journals,
betraying the trust repcsed IN them,
gave the reports to the public as
soon as received. II was regarded by
the papers SO publishing the reports
asan "enterprise Of live journalism. y
II was, in fact, about as reprehensible
q breach OF trast as could we'll be i'm
Agined.
A brief synopsis OF these reports
has already b, Ell given in these col
ums. and to-day We give what COR
tAips the most in po' 'ant part If the
full repirt--the Leg slaton asked
from Cong gress by The Commission IS
necessary to eg late the d. BITS due
the Government from tha railroads
The maj ajorty report referred to
shove States that the original sub
sides applied t. the Union Pacific
from IN lha to five mics westerly Of
Otden, and on the Kansas Pacific,
from Kansas City westerly, a di--
tame OF 393.94 mites TIE Union
Pacific has. more mileage in it's
branches than in its main line, some
of these branches do not pay expenses,
but In the .ggregate they add largely
to the net earnings of the road. The
balance favor OF these branches is
$2,ls3,soi.s4. These branches are
AL Of great b nefit to the sections they
tap. h- report says:
The net earnings of the system for
the pas two years (by which is now
meant their gross earnings less their
operating expenditures and tolI-)
have averaged $9,80OO0O, of which
SUM S,20 1000 should be credited TO
the parent line, and 81 ,600, 900 to the
branch system.
The actual value of the system,
based both IN the tot construction,
on the increased value of terminal
faciliies and right OF way, and also
On close and critical examination of
the earning powers of the main line
may he approximately stated at $780,
oOO, 900.
II would be impracticahle to esti-
mae the value of This property shon
0f its branches and OF most OF its i'm
portant terminals. The total funded
debt of the Union Pacific Railway
Companyon December 81, 1886, ex-
elusive OF the obligations to the United
States, il p aced at $6l, 1863. .l27. 80, Of
which, s3S, ,532 900 was prior to the
Bnitcd s ates statutory lien. The
balance of this debt, $4S .437, ,127. 80,
is then described. 1t is stated thai
the Union Pacific Railway Company
has issued $4s GOO 900 bonds on its
main line. which ara subsequent to
the lien Of the United States $35 1884,
80 the eof being covered by aeeuri.
ties other than that of the main line
itself, such as the land grant and sink.
I 1ngfdnd bonds, etc. and from this it
Il apppars that a mortgage executed
4 To-day to the United States would be-
snhjact to the burden of about $13r
800 900. in addition to the first mort
'agaHe and the debt due to the United
E8tster.
n Tho Union Pacific Railroad owes
he government $27,236,5 Kan
IS Pacific Railro i'd, IS, 500, 900;
- Union Pacific Railroad. interest
necrued to November | 1887, but not
ne, e32 OBS, ,343 So; the Kansas
hciic Railroad, interest accrued to
ovemher ], 1887, but not due.
|k}7. .766, ,1l3 o.; total, $7,,346, ,968. .62.
Ehe amount in United States bonds
md interest account for both COM
aanics is SIS .440, ,S0l 81; the amount
= sinkingiund account TO November
1887. il $7,734, ,OS4 80; total.
8,l74, 80 26--so that the present
llanee Of obligations is $50,l71,-
Tnis amount should not be con-
mnded with the present value of the
sebt. for the reason that the United
fntes IL under the obligation OF con-
huing the pay ment Of 6 er cent. on
"a outstanding sub idizrd bonds nm
their maturity. and the company
liable to refund such payment at
}o maturity Of tie bonds. The
incipal Of debt of the Un,on Pacific
>sl Kansas Pacific is $33, $3.50 5I2; {;
~ leo per cent. interest, $50, ,371,-
"a 60 makesthe total debt at matn
n cp3 $40 633 so. Deduct amount
fcreiiit Of both companies in bond
~ interest account, November I,
"a, 415. $40 .S9I o. leaves balance
<aatnri'y Of bonds s7s, 1853, ,741 6S I
b average dato Of maturity Of tie
Hot both companies il July 10,
The approximate present value
78 860. 741.66 discounted at three