Los Angeles daily herald., 1889-04-22
THE UNION PACIFIC.
Its Financial Statement fol
the Past Year.
NO DIVIDEND TOBE DECLARED
The Method Proposed for Staving
Off an Increase of Its Debt
to Uncle Sam.
Associated Press Dispatches to the HERALD.

Associated Press Dispatches to the HERALD.
BosToN, April 21.-The annual report
of the directors of the Union Pacific Rail
way Company for the year ending De
cember 81, 1888, has been received. The
first part of the report reviews at some
length the relations between the Govern.
ment and the company, with resume
of the non-action taken by Congress on
the Cultivate bill. The report con
tinues: "The results of the closing
months of last year with the present out
look for the current year would not justify
your directors in resuming the payment
of dividends. During the last year,
owing mainly to deficient crops in Kan
sas and Nebraska, which adversely af.
fected all the roads operating in those
| states, the surplus revenue of the Union
| Pacific proper III, 1870 miles) fell below
| the average and amounted to $2,510, ,814,
| as compared with So, 500 ,507 for the year
Immediately preceding. This equalled
-12 per cent. on the company's stock
During the year. however, the company
was, from time to time, called upon to
Cured on account of leases and the
inability of certain auxiliary lines,
in which it owned proprietory
interests, to meet their fixed
charges. Deducting the advances from
the increase, the net surplus increase of
the whole Union Pacific system was,
ending last year, 1888, 1856, compared
with $2,945 $40 in 1887, comp arative
falling off of 81 ,O88, ,693 So in the case of
the Union Pacific proper q 1924 OIL miles)
and falling off OF 81 1851 1888 in the
aggregate OF the Union Pacific system
enue of the system is equal to 2, 81 per
Pacific Railway proper.
The directors state that in order t.
guard against an increase OF the indebt-
edness of the company to the United
States, which now amounts to $50, 900 900,
they have decided to set apart each quar-
ter, 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, sum of
money or deliver securities to the Loan
and Trust Company of this city, to be
held by it as an additional sink
lug lunu, through WHICH PROVISION
shall be made for the debt due from
the company to the Government on ac-
count of bonds advanced in aid of the
construction of the railroads now included
in the Union Pacific system, excluding
the central branch, which will amount
for the current yesr to $2.012, $40. The
sum of $165, 900 has therefore been set
aside by vote of your directors out of
the moneys now in the company's treas
ury and will be paid over the American
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 in
terest paid by the Government during
that quarter, less payments made, during
that quarter into the Treasury of the
United States by the Company under all
the existing provisions of law, together
with the accumulation during the eame
period of the Thurman Act sinking fund
also held in the Treasury,