The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1890-09-25
union PACIFIC COMPANY
Exhaustive Annual Report Of ,he Govern
ment Directors.
Extension of Time for Payment Of
Its Debt to the Government
and a Lower Rate OF Inter-
est Recommended.


Union Pacific railway was submitted To
the secretary Of the interior to-day. II
shows that since the last report the condi-
ton OF business throughout the entire
Union Pacific system has improved. while
the increase in gross earnings during the
year 1889 over 1883 was only sS7i,65O; the
increase during the six months ending
June 30 OF the present year over the same
period Of 1889 was 3,2a5,027.
The Oregon Railway and Navigation
company and roads formerly in the Dem
yer, Texas 4 Fort Worth system, included
i'm the system of 1850, were not, however.
included in 1850. The surplus earnings OF
all lines operated and leased during the
first six months of this year were sG05, ,43i,
an increase of S222 0i8 over the same time
last year. The number of miles operated
was S,03i, against 7,Si6 the same time last
year. The expense of operating was Si4,-
6ei, 500, against Sll,59l,62l in 1859, an in
crease of Ss,072,97s. taxes not included.
The Oregon Short Line and Utah
Northern railway show an Increase in
earnings, but their surplus earnings are
reduced from 81, ,2Oi. .i50 for the six months
ended June ~, 1859, 10 Sl,l29, ,9s2 for the
same period this year, Oregon Railway
4 Navigation company shows q falling oil
in gross earnings, they being reduced
from 81 ,967, los To 81 ,St6,364 for the same
period this year, while the expense of OPP
Grating was increased Si27 ,5A.
The Denver d Boulder Valley road also
shows decrease. The falling of In the
gross earnings Of the Oregon Railway a
Navigation companyis is partially attributed
by the directors To partial failure of
crops in Washington and Oregon last
year. Information is received that the
crops this year are good.
The report says the continued growth OF
population and advancement in business
of the country tributary TO the Union Pa
ciilc, from Nebraska To Washington,
makes the expenditure of very large
portion Of the earnings imparatively nec-
essary for the increase and improvement
OF facilities.
So far as the directors have been able 10
see, the company is meeting reasonable
demands OF It's patrons as rapidly as its
means and circumstances will permit.
These improvements every year require
the expenditure of large proportion of sur
plus earnings. In the opinion of the di-
rectors the management is pursuing
wise course In its endeavor To meet rea-
sonable demands of its patrons. The
money being expended in construction
and better0ent of It's system is safely in-
vested and the returns Of the future will,
they think, prove the wisdom of this
course.
The report speaks al some length Of the
improvements being made ia the way of
extensions, steel rails, iron bridges, new
general shops at Cheyenne, development
OF coal mines, etc. The mines. tue report
ha a.f anlu saluaI It.p nj t.r,,l.l..,,
in aiTording fuel for the system. but
promise surplus yield which will be
source of income. The traffic arrange
ment with the Chicago a Northwestern is
approved. IL Is expected that the con-
solidation of several lines in Colorado
during 1889 will give the Union Pacific
access to and control of "a large amount
of traffic from which il has heretofore
been excluded.
In view Of the necessary improvements
already in hand, and urgent calls upon
the company on the part of its patrons
for extensions, il has been deemed best
by the directors to postpone for the pres
ent the establishment OF a second sinking
fund, proposed year ago. The directors
believe the cost of improvements made in
the meantime will greatly enhance the
value of the property, subject TO the liens
OF the government, while they will ex-
ceed in money value the full amount
which would have been paid into the
proposed sinking fund.
The total debt of the Union Pacific to
the government on January |, 1890, prin-
cipal and interest was S50,9O2, ,765. This,
with accruing interest, falls due in the
years 1895 and 1893. The directors say
the debt cannot be met at
the time specified without doing an
injustice to hundreds OF thousands OF peo-
Pile, directly aud indirectly concerned in
the welfare of the system. In order TO
meet IL, improvements and extensions Of
the company's lines would have To be
brought 10 a standstill, subjecting the peo-
Pile who have settled along the system 10
serious and perhaps irreparable loss, while
territory which naturally belongs TO il
would inevitably have 10 be surrendered
10 its more enterprising competitors. To
large extent, the welfare Of the people
OF the West (who depend upon the sys-
tenn as the main channel OF intercourse
with the markets Of the world is liable 10
be affected favorably or unfayorably by
the attitude OF the government in connec-
ton with the readjustment Of the com
pany's Indebtedness. The lighter the
burden the Union Pacific management is
compelled TO carry, the easier will IL be
for the management To meet the constant
VI hb' B'obi' i'i kiNAN'a "h'
better accommodations.
The report gives figures regarding the
mineral output Of states aud territories
tributary 10 the system, in order To illus
trato the magnitude of that industry as a
single item, aud says il is but foretaste
Of what the future is certain to bring
forth.
The best interests OF the people Of the
the great West should be considered par
amount TO all others. What is best for
them must in the long run be- the best for
the government and the best for the
Union Pacific Railway company. These
people are demanding not only
that the present flrstclass char
ayter Of the Union Pacific shall
! be maintained. but that every dollar
that can possibly be spared from its earn
ings shall be used in the bcttcrment and
extension Of the road, and they are acting
| within reason, for the yearly increase III
| population aud business Of their section
| requires extraordinary facilities. Conse-
| quently there is no such thing possible
as resting upon its oars for the Union
| Pacific until IL shall have given the mill
| ions destined TO spread over the plains
aud mountains Of the west and northwest
every accommodation for freight aud
| tr. flo tlay will ha autittpI In.