The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-10-02
UNION PACIFIC DEBT.
Annual Report Of the Govern
ment Directors.
THE LINES ARE PROSPEROUS.
Extsnsious Of Road Consume the EARN
inss-New Territory Being Acquired
THE Proper Rsadjustmsnt.


WAsHINaror CRY, Sept. 24.-Thc annual
report Of the government directory Of the
Union Pacinc railway was submitted 70 the
secretary Of the interior today. It shows
that since last report the condition Of BUSH
ness throughout the entire Union Pacific
system has improved While the increase
Of gross earnings during the year 1859 over
1883 was only $s74, 657, the increase during
the six months ending with June Of the
present year over the same period Of 1889
was $529.507. The Oregon Railway q Nav
ieati0n Company and the roads formerly in
the Denver, Texas 4 Fort Worth system
were not, however. included in 1859. The
surplus earnings of I'll the lines operated
and leased during the first six months of
this year were $6.051 304, 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 Utan 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 ,867-
l06 TO 3. $50. 364 Nr the same period this
year, while the expense of operating was
increased 70 the amount Of $427.6S4. 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
partial failure Of the crops in Washington
and Oregon last year. Information has
been received that crops this year are
good.
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 as soon az circumstances will per-
NIT. The Improvements every year re-
quire the expenditure Of. . large proportion
of the surDlus earnings In the opinions
of the directors the management is pursu-
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 only solved tho
great problem of supplying coal for the
system, bit promise to be . source of great
income. Tho traffic arrangement with
the Chicago d Northwestern il approved.
It is expected that consolidation in the
Northwest during 1890 will give the
Union Pacific access to and control Of .
large territory from which it has heretofore
been excluded.
In view Of the necessary improvements
already in hand, and the urgent calls on
the company upon the part of its patrons
for extension, it has been deemed best by
the directors to postpone for tho present
the establishment of the second sinking
fnrd 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 l. 1880, princi-
pal and interest, was $5O,9O2, 765. This,
with the accruing interest, falls due in the
years 1896 and 1889 The directors say the
amount cannot be met at the time specified
WituVue uOlHB AuJuouCo W uuuOI0OS Oh
thousands of people directly and indirectly
concerned in the welfare of the system. In
order to meet its payments the company's
lines would have to be brought to .
standstill, subjecting the people who
have settled along it TO serious
and perhaps irreparable loss, while the
territory which naturally belongs to II
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 it a. the chan.
mel of intercourse with the markets Of the
world. is liable to be affected favorably or
unfavorably by the attitude of the govern
ment in connection with the readjustment
of the indebtedness the Union Pacific is
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
al others in the settlement Of the question.
What is best for them is best for the gov.
eminent and best for the Union Pacific
from the earnings should be used in bet
in reason, for the yearly increase in popu-