New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-12-25


of interest.
1t was essential to the success Of this plan that
the Oregon system should show handsome net
earnings and be put on a dlvidend-payin basis,
and that the Gulf system should prove its capacity
to earn something over fixed charges in the first
year Of it's existence as a consolidation. Ana
this depended upon the operating department en-
tirely: upon the vice president and general man
ager al Omaha in the first instance then upon the
three general managers of the Mountain, Pacific
and Gulf divisions All of these were practical
railroad men. brought I'D 10 the business not a
college graduate among them. The causes OF the
failure being under consideration, the Denver ana
Gulf nav be left out, as that system more than
answered all expectations It's net earnings Tor
ten months show an increase Of over 80 per cent
upon the same months Of the previous year. lis
fixed charges as reported by the Stock Exchange
Committee when the new stock was listed. VIII
be after this wear $1,444,0OO; for 1890 they are
81 . 90 $50 and the net earnings for ten months
are 81 5l 662. Its ratio of operating expense is
about 6S per cent. which is good proof OF
economical management II will earn for the
current wear IN the neighborhood Of per cent on
its stock lis general manager Mr.. Meek, was
not originally a Union Pacific man. lie was
chosen by General Dodge to manage the Denver,
Texas and Fort WORTH and was made general
manager Of the new system at the time OF the
consolidation Had the Oregon end OF the line
been half as we'll managed the Guf DIVISION
the Adams administration would have pulled
through in spite of crop failures and snow block
AIDES.
In pursuance of the plan above indicated it was
understood by the operating department at Omaha
at the beginning OF the present year that the
most strenuous efforts should be put forth 10
make a good showing for the Oregon lines. 1t
was important in a general sense TO build up this
system and make il permanently profitable, but
il was especially important at this time TO have
encouraging monthly statements III order 10 suS-
tain tbc price i'm the market of the collateral trust
bonds based upon the Oregon Railway and Navl-
cation stock lately purchased, the company being
a borrower of money on these bonds as collateral.
Ani at the he1nnin- Ct tie year Mr.. Adams was
very sanguinc of the success OF his plans IN TINS
direction. The Short Line system OF itself showed
for 1889 a surplus of over 81 100000 above It's
own proper fixed charges. or nearly per cent
on the stock: but S136,00o of this was absorbed
in the deficit of the Navigation Company on It's
rental There was plausible explanation for this
in the falling of Of traffic from Eastern Oregon
urc had been due to lack Of snowfall. and in
January. 1890, that danger was certainly passed
The one thing they had enough of was snow. II
was confidently believed that with good crops in
Eastern Oregon insured by the snowfall. the
NAVIGATION Company would earn It's rental. and
short Line would have per cent surplus 10
divide to lis stockholders
The outlook was rosy But the monthly state
ments of the Navigation Company from the time
the Union Pacific had taken possession under the
lease had. for anybody who tuned them over a
little a sort Of musty smell, sug2csting the n
mark of the sailor who miStook iish-ball for a
biscuit that there was something dead in II.
Attention was called by n stakeholder 10 the fact
that while the crop failure OF 1859 might be
represented by the decrease OF S3d3000 IN thc
gross. there was an increase OF nearly 100000
in operating expenses that could not be- accounted
for: also 10 the suggestive circumstance that in
creased expenses had been a constantly recurring
feature in the statements. and he intimated that
the only explanation for This state Of things was
gross msmanagcment somewhere.
The acquisition Of the Navigation Company nv
the Union Pacific, including a tumble Of lawsuits
and iniunctions and a confusion Of people and
things in which presidents and vice presidents and
brokers and lawyers went bobbne around IN the
most amusing collisions and coniunct0ns on a
stage that spread from Carlsbad. GERMANY. 10
Portland, OTcgOn-thcsc Things had all taken
place and affairs had resumed settled aspect
in January, 1880, and now everything depended
on the business Of the Oregon system being con
Quoted economically and proitably. and brough,
to a dividend paying basis.