The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1889-04-23
THE UNION PACIFIC RAILWAY.
Statement of its Condition and Prospect for the
Current Year.

Boston, April 2O.-The annual report of
the directors of the Union Pacific railroad
company for the year ending December 81,
1855, is received.
The first part of the report reviews at
some length the relations between the gov
eminent and the company, with a resume of
noE-action taken by Congress on the Buth-
waite bill The report compares the result
of the closing months of last year with the
present. The outlook for the current year
will not justify the directors in presuming
the payments of dividends. During last
year. owing mainly to deficient crops in
Kansas and Nebraska, which severely af-
fected all roads operating in those states.
The surplus revenue of the Union Pacific
railway proper, ,7S90I miles, fell below the
average, and amounted to S2,5lO,Sl4 as com
pared with 80. 599, 507 for the year immedi-
ately proceeding. This equalled Alp per
cent. on the company's stock. During the
year, however, the company was from time
10 time called upon to advance money to
meet deficiencies OccasiOned on account Of
leases and the inability of certain auxiliary
lines, in which it owned property interests,
to meet their fixed charges. Deducting
these advances from the increases, the net
surplus increase of the whole Union Pacific
system during last year was s., 593,3 S6, com
pared with 3, 949, 40 in 1887, comparative
falling off Of Sl,0SS SOB, nearly 80 per cent,
in the face of the Union Pacific proper
d. S24 OF miles and a falling off of 81 ,357, 1888
in the aggregate of the Union Pacific sys-
TEN (6,6S1.49 miles). The net surplus
revenue of the system is equal to 2.Gl per
cent. on the capital stock OF the Union Pacl-
tic railway proper.
The directors state that in order to guard
against an increase of Indebtedness OF the
company which now amounts tOS5O, OOO,OOJ,
they have decided to set apart each quarter
from the surplus revenue of the company
on its investment account, as the case may
be, beginning with the second quarter OF
the current year, some money or deliver
securities to the American Loan and Trust
company of this city to be held by it as an
additional sinking fund through which pro
vision shall be made for the debt of the
company to the government on account OF
bonds advanced in the aid of its construc-
ton The railroad earnings now included
in the Union Pacific system, excluding the
Central Pacific. will amount, for the current
year, to 50, 102,31l. The sum OF SI65,3OO
has therefore been set aside by the vote of
the directors of the moneys now in the
company's treasury, and will be paid over
to the Loan and Trust company at the close
of the quarter, to be held and invested by
that company, under deed of trust, as
sinking fund it being computed that this
sum would equal the amount of interest
paid by the government during that quar-
ter, less the payment paid during the quar-
ter into the treasury of the United States
by the company under all existing provis-
ions of the law, together with the accumu-
lation dur ne the same period of the Thur
man act sinking fund, also held in the
treasury.