, 1890-09-25
THE UNION PACIFIC.
Annual Report of the Govern
ment Directors.
Great Increase in the Earn,
ings of 1890 Over 1889.
Business Throughout the Sys.
TEN Improving.

NV - ~ IL
report Of the government directors of the
Union Pacific railroad was submitted to
the secretary of the interior today. 1t
shows that since the last report the condi
ton Of business throughout the entire
Union Pacific system has improved.
While the increase of gross earnings dur
ing the year Of 1889 over 1883 was only
ss74,6 $50. the increase during the six
months ending June of the present year
over the same period OF 1889 was 50, $685.
OPT. The Oregon Railway & Navigation
COMPANY and the roads formerly in the
Denver, Texas x Ft. Worth system are
included in the system of 1890, but we're
not, however, included in 1889. The cur
plus earnings OF all lines operated and
leased during the first six months OF this
year we're 50. 05l .434, an increase OF 1922
O4S over the same time last year. The
number of miles operated was S.O34
against 7, $40 during the same time last
year, and the expense of operating was
Sl4. 664, 500 against 81 SOL. 52I in 1889,
an increase OF $3.072. 97S. Taxes are not
included.
The Oregon Short Line and Utah
Northern railway shows an increase in
earnings, but its surplus earnings are re-
duced from 81, 204, $50 for the six months
ended June 30. 1889, to 81, log, O82 for
the same period of this year. The Ore
gon Railway & Navigation ompany
shows a falling off in gross earnings. they
being reduced from 81, 967, I0S to 81, $685.
1854 for the same period of this year, while
the expense of operating was increased
to the amount of $427, 534. The Denver
l. Boulder Valley road also shows a de-
crease. The falling off In the gross
earnings of the Oregon Railway l. Navi-
CATION company ~ in part attributed by
the directors to the partial failure of the
crops 10 Washington and Oregon last
year. Information is received that the
crops this year are good.
The report says the continued growth
of population and the advancement in
business of the country tributary to the
Union Pacific from Nebraska to Washing
ton makes the expenditure of a large por-
ton ofthe earnings imperatively necessary
for the increase and improvement OF
facilities. As far as the directors have
been able TO see the company IS meeting
the reasonable demands of its patrons as
Ihllul1 uo ~ uCduH duu NEUTRALITY-SUSPICIOUS.
will permit. These improvements every
year require the expenditure of a larger
proportion of the surplus earnings. 10
the opinion of the directors the manage
ment is pursuing a wise course in its en-
deavor to meet the reasonable demands OF
its patrons. The money being expended
on the advancement and betterment of
the system is safely invested and the re-
turns of the future will, they think, prove
the wisdom of this course.
The report speaks at some length of
the improvements being made in the way
OF extensions, steel rails, iron bridges,
new general shops at Cheyenne. develop.
ment OF the coal mines. etc. These mines,
the report says, have not only solved a
great problem in affording fuel for the
system. but promise a SURPLUS yield,
which will be a source of income. The
traffic arrangement with the Chicago x
Northwestern is approved. 1t is expected
that the consolidation of the several lines
in Colorado during 1889 will give the
Union Pacific access TO and control of a
large amount Of traffic from which it has
heretofore been excluded.
In view of the necessary 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 the
second sinking fund proposed a year ago.
The directors believe the cost of the i'm
provements made 10 the meantime greatly
enhance the value Of the property sub
ject to liens OF the government, while
they exceed in money value tho full
amount which would have been paid into
tho nrnpnSat aiakfnu frnA
The total debt of the Union Pacific to
the government on January /. 1890,
principal and interest. was $50. 902. 1865
This, with the accruiug interest which
falls due in the wears 1889 and 1899 the
directors say caunot 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
Improvement and extension of the com
plny's lines would have to be brought to
a standstill, subjecting the people who
have settled along the line to serious and
perhaps irrepairable loss, while the terri
tory which naturally belongs to it 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 the system as
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 readiustment of the indebted
ness. The lighter the burden the Union
Pacific management is compelled to carry
the easier will it be for the management
10 meet the constant demands of the PEG
Die for greater and better accommodation.
The report gives figures regarding the
mineral output OF the states and %territor-
les tributary to the sy stem in order to il
lustrate the magnitude of that industry,
and says it is but a foretaste of what the
future is certain to bring forth.
The best Interests of the people of the
great West should be considered para
mount to all others in the settlement of
the question. What is best for them
must in the long run be best for the gov.
eminent, and best for the Union Pacific
Railroad company. These people are de-
handing not only that the present first
class character OF the Union Pacific shall
De maintained, but that every dollar that
can possibly be spared from its earnings
shall be used in the betterment and ex-
tension of the road. and they are acting
within reason, Tor the yearly increase in
roPuiasiou ana business OF their section
requires extraordinary facilities. Conse-
quentiy there is no such thing as resting
upon Its oars possible for the Union Paci.
nc until 1t shall have given the millions
destined to spread over the plains and
mountains Of the West and Northwest
the accommodation for freight and pass
enger traffic they will be entitled 10.
=, we are convinced. say the directors,
that tie present of the com
psny Is an honest and wise one. Ii
Oners In return for an nrtensinn nf L.