The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1890-09-25
The Government Directors An.
nual Report Submitted.
IT is FAVORABLE TO THE ROAD.
The Present Policy is Wise One-Trying to
Meet the Needs of the West-The
Frye Bill.

Pacific system, has improved While tie
increase OF gross earnings during the year
1889 over 1888 was only $50 the in
crease during the six months ending June
so of the present year. over the same
period OF 1885, was s3,295,027
The Oregon Railway 81 Navigation COM
plny and the roads formerly in the Denver,
Texas y Fort Worth system, included In
the system of 1890, were not, l.owever. in
Guided i'll 1889. The surplus earnings OF all
the lines operated AMI leased during the
nfst SIX moates Of this year were So U51 :
43f an increase of S,22,U4S over the same
time last year. Tue numoer of miles OBJ
Grated was Sob, against 7,S49 the same
time Last year, and the expense of operat-
Ing was Sl4, t44 800, against s11 ,59l, 52l in
l2o9, an 1ncreast Of S3,0i2, 97S, taxes not in
Guided.
The Oregon Short Line 81 Utah Northern
railway shows an increase in its earnings;
but lis surplus earnings are reduced from
II, Us, 400 for The SIX months ended June
30, 1889, to 81, l299S2 for the same period
this year.
The Oregon Railway s. Navigation com
pany shows falling off in its gross earn
lngs, they being reduced from 81 ,967, los to
81 ,e66,34 for the same period this year,
while the expenses of operating was in
creased to the amount of 1927 ,534 Tine
Denver q Boulder Valley road also shows
decrease.
The falling off in the gross earnings of
the Oregon Railway & Navigation COM
pany is in part attributed by the directors
to the partial failure of the crops in
Washington and Oregon last year. lnfor-
nation is received that the crops this year
are good.
The report says the continued growth of
n0nnlnf1nn .,n6 10 adtro, =,
business OF the country tributary to the
Union Pacific from Nebraska to Washing
ton, makes the expenditure of very
large portion of the earnings i'm
peratlvely necessary for an in
crease and Improvement of facilities.
So far as the directors have been able to
see, the company is meeting the reasonable
demands OF its patrons as rapidly as it's
means and circumstances will permit
These improvements every year require
the expenditure of larger proportion of
the surplus earnings. In the opinion of the
directors, the management Is pursuing a
wise course in its endeavor to meet the
reasonable demands of it's patrons. the
money being expended On the advancement
and betterment of the system, is safely in
vested and the returns of the future will.
they think, prove the wisdom of this course.
Inc report speaks at some length of the
improvements being made in the way of
extensions, steel rails, iron bridges, new
general shops at Cheyenne, development of
coal mines, ETC. These mines, the report
says, have not only solved great problem
in a1fording fuel for the system. but
promise a surplus yield which will be
source of income. The traffic arrangement
with the Chicago & Northwestern is ap-
proved. 1t is expected that the consolida-
ton OF the general lines in Colorado during
1889 will give the Union Pacific access to.
and control of, large amount of traffic
from which it has heretofore been excluded.
In view of necessary improvements
already In hand and the urgent calls upon
tue company on the part of its patrons for
extensions, it has been deemed best BY the
directors to postpone for the present the es-
adjustment of second sinking fund pro-
posed year ago. The directors believe
that the cost OF the improvements made in
the meantime greatly enhance the value of
the property subject to the liens of the gov
eminent while they exceed 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 l., 1890, principal
and interest, was $40, 902, 765 This. with
the aecruing interest," falls due in the years
lS95-1S99
The directors say tie debt cannot be met
at the time specified without doing injustice
and indirectly concerned in the welfare of
the system. In order TO meet it the i'm
provement and extension 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 per-
maps irreparabie loss, while the
territory which naturally belongs to
1t would inevitably have to be
surrendered to Its more hourishing com
petitors. To large extent the welfare of
the people OF the west depends on the sys-
tenn, as the main channel of intercourse
with the markets of the world, and is liable
to be Affected favorable or unfayorably. nv
the attitude OF the government in connec
ton with the adjustment OF its indebtedness
The lighter the burded the Union Pacific
managementls compelled to carry, the easier
Will 1t he Tor that management to meet the
constant demands of the people for greater
and better accommodation
The report gives the figures regarding
the mineral output of the states and terri
tories tributary to the system. In
order to illustrate the magnitude
OF that industry it cites a single
item and says it is but 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 in settlement of the question.
w nat Is best for them must in the long
RIM, be best for the government and best
for 1.-The Union Pacific railroad company.
These people are demanding not only that
the present first 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 BET
terment and extension of the road and they
are acting within reason, for the yearly in
crease in the population and business of
their section requires extraordinary faciii-
ties. Consequently there is no such a
thing as resting upon its oars for the Union
Pacitic until it has given the millions des
tined to spread over the plains and noun
talns OF the west and northwest accomoda
ton for the freight and passenger traffic
they will be entitled to.
I'VE are convinced, say the directors.
that the present management of the COM
pany is wise one. 1t offers, in return for
an extension of tune for the payment of it's
debt and lower rate of interest, mort
gage on its property which would increase
its security to the government to an
amount above that held at present of
s34, 100000, shown in Senator Frye's report.
This proposition from the company is in
corporated in the Frye bill now before the
Senate. measure which the directors be-
lleve, If passed, would remove completely
the embarrassment under which the Union
Pacltic suffers at present and further insure
10 the government ultlmete payment of
every dollar which it has advanced to the
company and relieve persons who are de-
pendent upon the Union Pacific for accom-
mediation from all anxiety as to the future
OF the road. The provision in the bill which
MAKES the government an ordinary cred
ltor and leaves the debtor company free