St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-04-22
UNION PACIFIC REPORT.
The Company Trying to Prevent
an Increase of Its Government
nnht

BosToN. April 21.-The annual report
OF the directors of the Union Pacific
Railway company for the year ending
Dec. 81, 1888, is received. The first
part of the report reviews at
some length the relations between the
government and the company. with a
resume of the nonaction taken by con-
gress on the Cultivate bill. The report
continues: The results of the closing
months of last year with the present
outlook for the current year would not
| Justify your directors in resum-
ing the payment of dividends. Dur
ing last year. owing mainly to
deficient crops in Kansas and Nebraska,
which adversely affected roads operat-
ing III those states. the surplus revenue
of the Union Pacific proper q, S24 OF
niles fell below the average, and
amounted 10 $3.50, S14.35, as COM
pared with $3.50, 5000. for the
year Immediately preceding. This
eQualled 4.12 per cent On the cOmpany's
stock. During the year, however. the
company was from time to time called
upon to advance money to meet
deficiencies incurred on account of
leases and the inability of certain
auxiliary lines, in which it owned
lutcIeSt. u IUett lU6iE
liked charges. Deducting these adj
| yanceS from increases the net surplus
| increase of the whole Union Pacific
system during last year was S1.593.-
$500. compared with S2.945.310.19 in
! 1887. a comparative falling off of 81. OSS,-
I $500 in the case of the Union Pacific
| proper Q.S24.01 niles and falling off of
| 1851. $3.50 in the aggregate Union
! Pacific system (6.6S1.20 miles, net
| surplus revenue of the system. equal to
2.6l per cent on the capital stock of the
Union Pacific railway proper. The di-
| rectOrs state in order TO guard against
an increase of Indebtedness of the com
pany to the United States, which now
amounts TO s55ee $4,000. they have de-
/ cided to set apart each quarter
from the surplus revenue of the COM
| pany or its Investment account, as the
| case may be, beginning with the second
| quarter of the current year. a sum of
| money OF amount of securities sufficient
| to prevent further increase of the
! government debt and pay over
| such money or deliver securi-
| ties to the American Loan and Trust
| company of this city. to be held by it as
an additional sinking fund through
! which provision shall be made for the
debt due from the company to the gov
-CiIillcut at lidttIIIA- ne IHteEeSJ pdItt
| by the government on account of the
bonds paid in aid of the construction
of railroads now included in the
| Union Pacific system, excluding the
| Central branch, will amount for the cur
rent year to S2,012.3S072. The sum of
Sl65,000 has, therefore. been set aside
by a vote of your directors out of the
| moneys now in the company'S treasury,
and will be paid over to the American
Loan and Trust company at the
close of the quarter, to be held
and invested by the company under
the deed of trust, as sinking fund, it
beng computed that this sum would
| equal the amount of interest paid by the
government during that quarter, less
the payments made, also during that
quarter. into the treasury of the United
States by the company, under all the
existing provisions of the law. together
with the accumulation during the same
period Of the Thurman act sinking
fund, also held in the treasury.