The morning call., 1890-09-25
THE UNION PACIFIC.
Annual Report to the Govern
ment Of Its Affairs.
Extensive Improvements Absorb Nearly All
The Surplus Earnings.
The Directors Advocate the Passage Of the
Frye Bill Extending The Time for
Settling It's Indebtedness.


the Secretary OF the Interior to-day. 1t
shows that since the last report the condi-
tion of business throughout the entire
Union Pacific system has improved. While
the Increase in the gross earnings during
the year 1883 over 1883 was only S74, $50, the
increase during the six months ending June
30th of the present year over the same period
of 1889 was S3, ,295, OPT. The Oregon Railway
and Navigation Company and the soads
formerly in the Denver, Texas and Fort
Worth system, which are ircIuded in the
system of 1890, were not. however, included
in 1889. The surplus earnings of all the
lines operated ard leased during the first six
months of this year were S6,051. .434, an in
crease u 500, 04S over the same time last
year.
MILES OPERATED.
The number of miles operated was S034,
against 7S49 for the same time last year,
and the expense of operating them was
S14, 500 against S11, ,591, ,521 in 1889, an in
crease of S3,O92,97s, taxes not included.
The Oregon Short Line and the Utah North
ern Railway showan increase in earnings,
but their surplus earnings are reduced from
81, ,203, $50 for the six months ended June 30,
1889, to SLIPS, ,9S2 for the same period this
year. The Oregon Railway and Navigation
Company shows falling off in its gross
earnings, they being reduced from 81, ,967, 10S
TO S1,S66,364 for the same period this year,
while the expense of operating the road was
increased TO the amount of S427,534.
OTHER BRANCHES.
The Denver and Boulder Valley Road also
shows decrease. The failing off in the
gross earnings of the Oregon Railway and
Navigation Company is in part attributed by
the Directors to the partial failure of crops in
Washington and Oregon last year. Informa-
tion is received that crops this year are
good.
The report says: The continued growth
of population and the advancement of busi-
ness in the country tributary to the Union
Pacific from Nebraska to Washington make
the expenditure of very large portion Of
the earnings imperatvely necessary for the
increase and improvement OF facilities. AS
far as the Directors have been able to see,
the company is meeting the reasonable Ge-
mands of Its patrons as rap idly as its means
and circumstances WIN permit. These im-
provements every year require the expendi-
ture of larger proportion of the surplus
earnings.
EXTENSIVE IMPROVEMENTS.
In the opinion of the Directors, the man.
agement is pursuing wise course in its
endeayor to meet the reasonable demands of
its patrons, as the money being expended in
the extension and settlement of the system
is safely invested and returns of the future
will, they think, prove the wisdom of its
course. The report speaks at some length
If ba ipipr kop do in,
way of extensions, steel rails, iron bridges,
new general shops at Cheyenne, develop
ment of coal mines. etc. These mines, the
report says. have not only solved a great
problem in affordng fuel for the system, but
promise surplus which will be source of
income.
THE NORTHWESTERN AGREEMENT.
Traffic arrangement with the Chicago and
Northwestern is approved. 1t is expected
that the consolidation of several lines in
Colorado during 1899 will give the Union
Pacific access to and control of n large
amount of traffic from which it has hereto
fore been excluded In view of the neceS-
sary improvements 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 establishment of a sec
ond Sinking Fund proposed year ago.
lub DIItClNlS UtilcNt Tic CUSt VI luDIUNp-
ments made in the meantime greatly en-
hances the value of the property subject to
the liens of the Government while they ex-
ceed in money value the full amount which
would have been paid into the proposed Sink
ing Fund.
THE CoMPANY's INDEBTEDNESS.
The total debt of the Union Pacific on
January /, 1890, principal and interest, was
S50,902, 76J. This, with the accruiDg in
terest, falls due in the years 1895 and 1899.
The Directors say the debt cannot be met at
the time specified without doing an injustice
to hundreds of thousands of people directly
and indirectly concerned in the welfare of
the system. In order TO meet it the I'M
provement and extension of the conf
pany's lines would have to be brought
to a standstill,, subje ting the people
who have settled along the system
to serious and perhaps irreparable
loss, While the territory which naturally be-
longs tn 1t would inevitably have to be sur
rendered to its more enterprlsiug competi-
tors. To large extent the welfare of the
people of the West, who depend upon this
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 connection
with the readJuStment Of the Indebtedness.
The lighter the burden the Union Pacific
management is compelled to carry, the
easier will it be for the management to meet
the constant demands of the people for
greater ana better accommodations.
A PLEA FOR THE PEOPLE.
The report gives figures regarding the
mineral output of the States and Terrltor-
les tributary to the system in order to illus
trate the magnitude of that industry as 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 others In the settlement of the ques-
tipn WbnI iS host for them muSf in the
long run, be the best for the Government
and best for the Union Pacific Railway,
these people demanding not only that the
present tirst-clas5 character of the Union
Pacific shall be mani iained but that every
dollar that can possibly be spared from its
earnings shall be used in the bet.erment and
extension of the road. And they are act
ing within reason, for the yearly increase in
population and business Of their section re-
Quires extraordinary facilities, consequently
there is no such thing as resting upon Its
oars possible for the Union Pacific until 1t
shall have given the millions destined to
spread over the plains and mountains OF the
West and Northwest all the acc0mmoda-
tionS for freight and passenger traffic they
will be entitled to.
WISE MANAGEMENT.
1--WE are convinced" say the Directors,
"that the present management OF the COM
pany is an honest and wise one. 1t offers, IN
return foran extension OF time for the pay
ment of its debt, and a 0werra of interest,
q mortgage ON its entire property, which
would increase its security to the Govern
ment, to the amount above that held at
present, of S34, 500, 600, MS shown in Senator
Frey's report"
This prOrOsal from the company Is incOr-
porated in the Frye bill now before the Sem
ate, measure which the Directors believe,
| If passed, would remove completely the enl-
barrassment under which the Union Pacific
suffers at present, further insure to the Gov
r,lftn IN r~nx. kof
dollar den which It has advanced to the COMPANY co &
and relieve the people who rely upon the
| Union Pacific for accommodation from all
anxiety as TO the future Of the road. The