Los Angeles herald., 1890-09-25
THE UNION PACIFIC.
The Business of the Entire
System Improved.
Money Expended In Extensions
Safely Invested.
Future Extensions Dependent on the
Governments Action.
The Government Directors Strongly Urge
the Lengthening OF the Period
The Government Directors Strongly Urge
the Lengthening OF the Period
of Indebtedness.
Associated Press Dispatches. |

report OF the government directors of
the Union Pacific railway was submit
ted to the secretary of the interior today
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 gross
earnings during the year 1889 over 1888,
was only $S74,659 the increase during
the same months ending with June of
the present year, over the same period
of 1889, owas $3,295,O2 The Oregon
Railway and Navigation company and
the roads formerly in the Denver and
Texas and Fort Worth system, includ-
ed in the system OF 1890, were not, how
ever, included in 1889. The surplus
earnings of all lines operated and leased
during the first six months of this year,
were $6,O51 ,434, an increase of $222, ,O46
over the same time last wear. The
number of miles operated was SO34,
against 7S49, the same time last year,
and the expense of operating was $14,-
$500, against $11 ,591 ,521 in 1889, an
increase OF $3,072,9 taxes not included.
The Oregon Short Line and Utah
Northern railroad shows an increase in
earnings, but its surplus earnings are
reduced from 81, ,204 $50 for the six
months ended June 80, 1889, to 81 ,129,-
9S2 for the same period this year. The
Oregon Railway and Navigation COM
pany shows falling off in gross earnings,
they being reduced from 1867, 1893 to
81, ,S66,364 for the same period this year,
While the expense of operating was
increased to the amount of $427 ,534. The
Denver and Boulder Valley road also
shows decrease. The falling off in the
gross earnings of the Oregon Navigation
company is in part attributed by the
directors to the partial failure of crops
OF Washington and Oregon last year.
Information is received that crops this
year are good.
The report says the continued growth
OF population and advancement in bust
ness OF the country tributary to the I'm
ion Pacific from Nebraska to Washing
ton makes the expenditure of a very large
portion of the earnings imperativeIv
necessary for the increase and improve
ment of facilities. So far as the di-
rectors have been able to see, the COM
panv is meeting the reasonable demands
OF its patrons as rapidly as its 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
wise course in its endeavor to meet the
reasonable demands OF it's 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 some length of
improvements being made in the way of
extensions, steel rails. iron bridges, new
general shops at Cheyenne, devlopment
OF coal mines. etc. These mines, the
report says, have not only solved the
great problem of affording fuel for the
system, but promise surplus yield
which will be source of income.
The traffic arrangement with the
Chicago and Northwestern is approved.
1t is expected that the consolidation of
several lines in Colorado during 1889,
will give the Union Pacific access to
and control of large amount OF traffic
from it heretofore excluded.
In view of necessary Improvements
already in hand, and urgent calls upon
the company on the part of it's patrons
for extensions, it has been deemed best
by the directors to postpone for the
present the establishment of the second
sinking fund proposed year ago. The
directors believe the improvements made
in the meantime greatly enhance the
value OF the property subject to liens of
the government, while they exceed in
money value the full amount which
would be paid into the proposed sinking
fund.
The total debt of the. Union Pacific on
January l, 1890, principal and interest,
was 0,902, ,765. This, with the accru-
ing interest, falls due on the years 1895
to 1899. The directors say the debt can
not be met at the time specified without
doing injustice to hundreds of thousands
of people directly and indirectly con-
cerned in the welfare of the system. In
order tomeet it, the improvements and
extensions of the company's lines would
have to be brought to standstill sub
jecting the people who have settled along
the system to serious and perhaps ire
parable loss, while the territory which
naturally belonged to it would inevitably
have to be surrendered to its more enter
prising competitors.
To a large extent the welfare OF the
people of the west who depend upon the
system as the main channel of inter-
course with the markets of the world,
is liable to'be affected favorably or un-
favorably by the attitude of the 'goverre
ment in connection with the read djustment
of the Indebtedness. The lighter the
burden the Union Pacific management
is compelled to carry, the easier it will
be for the management to meet the con-
stant demands OF the people for greater
and better accommodation.
The report gives figures regarding the
mineral output of the states and terri
tories tributary to the system, in order
to illustrate the magnitude of that in
dustry as single item, and says it
is but a foretaste of what the future is
sure to bring forth.
The best interests OF the people OF the
Great West, says the report, should be
considered paramount to all others to
the settlement of the question. What
is best for them must, in the long run,
be best for the government and best
for the Union Pacific railway company.