The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-09-25
UNION PACIFIC DEBT.
Annual Report Of the Govern.
ment Directors.
Extsnsions 81 BeoA Consune ne Earn
ings-Nsv Territory Beisg Acquired
The Proper Rsadjustmsnt.


-Thc Proper Readjustmsnt
WASHINGTON CrrY, Sept. 24.-The annual
report Of the government directory Of the
Union Pacific railway was submitted To The
secretary Of the inferior today. It shows
that since last report the condition Of bnsi-
ness throughout the entire Union Pacific
system has improved. While the increase
of gross earnings during the year 1850 over
1883 was only $s74.657. tho increase during
the six months ending with June of the
present year over the same period Of 1889
Was $3o9.5U. The Oregon Railway q Nav
igatiOn Company and the roads formerly in
the Denver, Texas 4 Fort Worth system
we're not. however, included in 1883. The
surplus earnings of all the lines operated
and leased during the first six months OF
TINS year were 5000, 5N, an increase OF
$222, 648 over the same time last year; the
number of miles, 8.034, against Alb the
same time last year. The Oregon Short
Line and Utah Northern railway shows an
increase in earnings. but its surplus earn
ings are reduced.
The Oregon Railway and Navigation
Company shows . falling OF in the gross
earnings, they being reduced from 81. 967. :
lOS TO u, SGT, 1854 for the same period this
year. while the expense OF operating was
increased to the amount Of $427 .534. The
Denver 4 Boulder Valley also shows . de-
crease.
The falling of in the gross earnings of
the Oregon Railway and Navigation Com
pany Is attributed BY the directors to q
partial failure OF the crops in Washington
and Oregon last year. Information has
been received that crops this year are
coed.
The report says: The continued growth
in population and advancement in bust
ness tributary to the Union Pacific from
Nebraska to Washington make expenses
necessary for increase and improvement
of facilities The directors are meeting the
demands q soon as cireumstances viii per-
NIT The IMPROVEMENTS every year re-
quire the expenditure Of large proportion
of the surplus earnings. In the opinions
OF the directors the management IL pursue
ing wise course in its endeavors to meet
the demands of its patrons. Money is being
expended in extensions, ETC., and the
future will, they think, prove the wisdom
of this course. The report speaks at some
length on improvements, iron bridges,
steel rails, the new general shops at Chey-
enne, and the development Of new coal
mines. which have not sonIy solved the
great problem of supplying coal for the
system, but promise 70 b. source Of great
income. The traffic arrangement with
the Chicago & Northwestern is approved.
1t is expected that consolidation in the
Northwest during 1890 will give the
Union Pacific access to and control Of
large territory from which il has heretofore
been excluded.
In view of the necessary improvements
already IN hand, and the urgent calls on
the company upon tie part of its patrons
for extension, it has been deemed best by
the directors to postpone for the present
the establishment Of the second sinking
fnnd proposed year ago. The directors be-
lieve the cost of the improvements made in
the meantime will enhance the value of the
property subject to the liens OF the govern
ment, 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 1. 1880. princi-
pal and interest. was $5O, 9O2, 765. This.
with the accruing interest, falls due in the
years 1895 and 1888. The directors say the
amount cannot be met at the time specified
without doing injustice to hundreds of
thousands of people directly and indirectly
concerned in the welfare of the system. In
order to meet its payments the cbmpany's
lines would have to be brought to .
standstill, subjecting the people who
have settled along it 10 serious
and perhaps irreparxbfe-less. while the
territory which naturally belongs to II
would inevitably have to be surrendered To
its more enterprising competitors. To a
large extent the welfare of the people of
the West. who depend upon it as the chan.
mel of intercourse with the markets of the
world, is liable to be affected favorablv or
unfavorably by the attitude of the govern
ment in connection with the readiustment
of the Indebtedness the Union Pacific il
compelled to carry. The report gives fig.
ures regarding the mineral output.
and the territory tributary to the
system, for the benefit of tourists, etc. 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 is best for the GOV.
eminent and best for the Union Pacific
railway. Every dollar that can be spared
terment of the road, and it will be acting
in reason, for the yearly increase in popu.
lation and business of its section requires
facilities. consequently there
is no such thing as resting upon its
oars. All the accommodations for
freight and passenger ssafiic will
be increased. The present management is
an honest and wise one. 1t offers in return
for ap extension of time for the payment