Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1890-09-25

W AShlNOION, LIZ NA1
nual report of the Government Directors OF
the Union Pacific Railway was submitted
to the Secretary of the Interior to-day. 1t
shows that since the last report the con-
dition Of business throughout the entire
Union Pacific system has increased. While
the increase of gross earnings during tue
wear 1889 over 1888 was only 1914 $50 the
Increase during the same months ending IN
June of the present year over the same
period OF 1889 was SO, 295, 027.
The Oregon Railway and Navigation
Company and the roads formerly in the
Denver and Texas and the Fort Worth sys-
tenn, included in the system OF 1870, were
not, however, included in 1889:
The surplus earnings OF all the lines
operated and leased during the first six
months of this year were $7,051, 434 an in
crease of 1929, 046 over the same time last
year.
The number of miles operated was S,034,
against I $40 for the same time last year,
and the expenses of operation were Sl4,
664, 500 against $11 ,591 ,521 in 1889, an in
crease of $3,07297S. Taxes are not in
cluded.
The Oregon Short Line and Utah North
ern Railrca IS show an increase in earnings,
but its surplus earnings are reduced from
ST ,204, $50 for six months ended June 30,
1889, to 81, 129 992 for the same period this
wear. The Oregon Railroad and Navigation
Company shows a falling off in gross earn
ings, they being reduced from 81 1851 1913 to
81 ,S66 3G4 for the same period this year,
while the expense of operating was in
creased to the amount of $27 ,534 The
Denver and Boulder Valley road also
shows a decrease The falling off in the
gross earnings of the Oregon Navigation
Company is in part attributed by the Di-
rectors to partial failure of the crops of
Washington aud Oregon last year. 1nfor-
nation is received that crops this year are
coed.
The report says that the continued
growth of population and advancement in
the business of the country tributary to the
Union Pacific from Nebraska to Washing
ton, makes the expenditure of very large
portion of the earnings lmperatively neces-
sary 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 IFS patrons as rapidly as the
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 all
reasonable demands of its patrons. The
money being expended in the extension
and betterment of the system is safely in
vested, and the returns 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, the develop
ment of coal mines, etc. These mines, the
report says have not. only solved great
problem in affording fuel for the system,
but promise a surplus yield, which will be
source of income.
The traffic arrangement with the Chicago
and Northwestern is approved. 1t is ex-
pected that consolidation of several lines
in Colorado during 1889 will give the Union
Pacific access to and control of large
amount of traffic from it which have here
tofore 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 year ago. The Directors be-
ieye the cost of improvement made in the
meantime greatly enhances the value of
SAC tJlOpS4s oQEJcCt " IICbo vi lu6 Wv
eminent, while they exceed in money
value the full amount which would have
been paid into the proposed sinking fund.
The lo.al debt of the United States on
January l, 1890, principal and interest, was
SO, 902, 765. This, with the accruing in
terest, fails due in the years 1S95-99. The
Director say the debt cannot be met at the
time specified without doing 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 companies
lines would have to be brought to a stand
still, subjecting the people who have set
tied along the system TO serious and per-
haps irreparable loss, while the territory
which naturally belonged to it would in
evitaoly nave to be surrendered to its more
enterpfising competitor.
To large extent, the welfare of the peo-
pie of the West who depend upon the sys-
TEN as the main channel of intercourse
with the markets of the world is liable to
be affected fav6rably or unfavorably by the
attitude of the Government in connection
with the REIMBURSEMENT of the indebted
ness The lighter the burden the Union
Pacific managem snt is compelled to carry,
the easier viii il be for the management to
meet the constant 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 industry
as a single item, and says it is but fore
taste OF what the future is certain to bring
forth.
The best interests of the people of the
great West should be considered paramount
10 all others III the settlement of the ques
ton. What is best for them must, in the
long run, be best for the Government anC
best for the Union Pacific Railroad Com.
pany. These people are demanding no.
only that the present frst-class character
of the Unicn Pacific shall be maintained
but that every dollar that possibly can bt
spared from its earnings shall be used il
the settlement and extension of the road
and they are acting within reason for {
yearly increase in population. The bust
ness of their section requires extraordinary
facilities, consequently there is no such
thing as resting upon its oars possible fol
the Union Pacific until it shall have giver
the millions destined to spread over tn,
plains and mountains of the West ant
Northwest, all accommodations for freigh
and passenger traffic to which they will bt
entitled.
We are convinced, say the Directors, tina
the present management OF the company /!
an honest and wise one. 1t offers in re
turn for an extension of time for the pay
ment of its debt and lower rate of inter
est, a mortgage on its entire properly
which would increase its security to tn,
Government 10 an amount above that helC
at present of $34, SOC, 900, as shown in Sena
tor Fryes report. This proposal from tn.
company is incorporated in the Frye bill
now b. fore the Senate, measure which
the Direc tors believe. if passed, would re
move c. NJ oletely the embarrassment unde
which the Union Pacific suffers at present
Further, il will insure to the Government
the ultimate repayment of every dolla
which il has advanced to the company, ant
relieve the people who rely upon tn
Union Pacific for accommodation from al
anxiety as to the future of the road. Th
nroyision in the bill which makes III
Goyerument an ordinary creditor an
leaves the debtor company free-handed I
conduc, its business without interference
is the Directors believe, a wise one.
NAVY YARD EMPLOYEES.
The Forces Cannot BE Increased Unti
After Election.
WASHINGTON, September 24th.-The Sec
retary of the Navy has addressed lette
-. ron, andsnt of each of the nav