St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-09-25
Government Directors Of the
Union Pacific Make Their
Annual Report.
The Increase in Earnings of
the System Three Millions
in Six Months.
It's Total Debt to the Govern
ment Something Over
Fifty Millions.
Heavy Draft Upon the Funds
for improvements in Va
piOuS Places.

WASHINGTON. Sept. 24.-The annual
report of the government directors of
the Union Pacific railway was submit
ted to the secretary of the interior to-
day. 1t shows that since the last report
the condition of business throughout
the entire Union Pacific system has i'm
proved. While the increase of the gross
earnings during the year 1889 over 1888
was only 1874, ,659. the increase during
the six months ending June 80 of the
present year over the same period of
1889 was So, ,295, ,O27. The Oregon Rail-
way and Navigation company, and the
roads formerly in the Den yer, Texas 81
Fort Worth system, included in the syS-
tenn of 1890, were not, however, included
i'll 1889. The surplusearnings of all the
lines operated and leased during the
first six months of this year were $6,051,-
434, an increase of s222,04 over the
same time last year. The number of
miles operated was S,034, against ,S49
the same time last year, and the eX-
pense of operating was S14, ,664, 500, as
against S11, ,59l, l,521 in 1889, an increase of
So, or, ,97S, taxes not included. The Ore
gon Short Line and Utah Northern
railway
Shows an Increase
in the earnings, but its surplus earn
ingS are reduced from 81, ,204, $50 for the
six months ended June so, 1889, to 81, 139,-
9s2 for the same period this year. The
Oregon Railway and Navigation compa-
ny shows falling off in gross earnings.
they being reduced from S1,967, 10S to
81. .S66, 1864 for the same period this year,
while the expense of operating was in
creased to the amount of $421,534. The
Denver & Boulder Valley road also
shows a decrease. A falling off in
the gross earnings of the Oregon
Railway &c Navigation company is in
part attributed by the directors to par
tial failure of the crops IN Washington
and Oregon lastyear. Information is re-
ceived that the crops this year are good.
The report tsaysthat the continued growth
of population and the advancement
in bus mess of the country tributary
to the Union Pacific system from Ne
braska to Washington makes the ex-
penditure of q very large portion of the
earnings imperativeIy necessary for the
Increase and improvement OF facilities.
AS far as the directors have been able
to see, the company is meeting the rea-
Sonable demands of the patrons as
rapidly as the means and circumstances
will permit. These improvements every
year require an expenditure of the
larger proportion of the surplus earn
ings. In the opinion of the directors.
the management is pursuing wise
course in its endeavor to meet the rea-
Sonable demands of its patrons. The
money being expended in the extension
and betterment OF the system is
Safely Invested,
and the returns of the future will, they
think, prove the wisdom of this course.
The report speaks at length of the i'm
provements being made in the away Of
extensions, steel rails. iron bridges,new
general shops at Cheyenne. the develop
ment of coal mines, etc. These mines,
the report says. have not only solved
the great problem in affording fuel for
the system, but promise surplus yield
which will be source of income. The
traffic arrangement with the Chicago &
Northwestern is approved. 1t is expect
ed that the consolidation of several lines
in Colorado, consummated during 1889,
will give tho Union Pacific access to
and control of large amount of traffic
from which it heretofore has been eX-
cluded. In view of the necessary i'm
provementS already in hand and the
urgent calls upon the company on the
part of its patrons for extensions, it has
been deemed best by the directors to
postpone for the present the establish
ment of second sinking fund proposed
year ago. The directors believe the
cost of the improvement made in the
meantime greatly enhances the value OF
the property subject to liens of the gov
value the full amount which would have
been paid into the proposed sinking
fund. The total debt Of the Union Pa
cific to the government on. Jan. L, 1890,
Principal and Interest,
was $50. ,765. This. with the accru-
ing interest, falls due in the years 1885
1899. The directors say the debt cannot
be met at the time specified without
doing injustice to the hundreds of thou
sands of people directly and Indirectly
concerned in the welfare of the system.
In order to meet it, the improvements
and extensions of the company'S lines
would have to be brought to stand
still, subjecting the people who have
settled along the system to serious and
perhaps irreparable loss, while the ter
ritory which naturally belongs TO it
would inevitably have to be surrendered
to its more enterpriSing competitors.
TO large extent the welfare of the
people of the West who depend upon
the system as the main channel
of intercourse with the markets
of the world is liable to
be affected favorably or unfavorably by
the attitude of the government in con-
nectiOn with the readjuStment of the
indebtedness. The lighter the burden
of the Union Pacific management the
easier it will be for that management to
meet the constant demands of the peo-
pie for greater and better accommoda-
tion. The report gives figures regard
ing the mineral output of the states
and territories tributary to the. system
in order to illustrate the magnitude of
it is but a foretaste of what the future
is certain to bring forth. The
best interests of the people Of the great
West should be considered paramount
to all others in the settlement of the
question. What is best for them. must
be in the long run best for the govern
ment and best for the Union Pacific
Railway company. These people are
demanding only that the present.
Ffrst-Class Character
of the Union Pacific shall be MAIN
tanned, but that every dollar that
can possibly be spared from its
earnings shall be used in the better
ment and extension of the road. And
they are acting within reason, for the
yearly increase in population and busi-