, 1890-09-25
Annual Report of the Gov
ernment Directors.
IMPROVEMENTS MUST CONTINUE
The Needs of the Northwest
Reasons for Leniency Con-
oerning the Debt.

out the entire Union Pacific system has
improved. While the increase in the
gross earnings during the year 1850 over
1883 was only SS7i,650, the increase
during the six months ending in June
of the present year over the same period
of 1883 was S3, 295. 027 The Oregon Rail.
way & Navigation Company and the
roads formerly in the Denver, Texas IL
Fort Worth system, included In the sys-
tenn OF 1890, were not, however, included
in that of 1880.
The surplus earnings of all the lines
operated and leased during the first six
months this year were SG,0jl i3i, an In
crease of 1929, 2,04s over the same time
last year. Tho number of miles operated
was S,034, against 7sJ0 for the same
time last year, ana the expense of ope-
rating was sli, 1894, 800, against Sl1, SOL,
52l in 1880, an increase of S3,o79,07
taxes not included.
The Oregon Short Line & Utah North.
crn Railway shows an increase in earn
ings, but its surplus earnings are re-
duced from si,204, $50 for the six
months ended June 30, 1889, to 81, 100,
9S2 for the same period this year.
The Oregon Railway & Navigation
Company shows falling oil in gross
earnings, they being reduced from ST.
087 l0S to 81 sss, 36i for the same period
this year while the expense of operating
was increased by the amount of 1927, 53i.
The Denver Il Boulder valley road
also shows decrease.
The falling OIL IN the gross earnings
of the Oregon Railway Il Navigation
Company is partially attributed by the
directors to the partial failure of the
crops In Washington and Oregon last
year. Information is received that crops
this year are good.
The report says that the continued
growth in population and advancement
in business of the country tributary TO
the Union Pacific from Nebraska to
Washington makes the expenditure of a
very large portion OF tho earnings i'm
peratively necessary for the increase and
provement of the facilities. So far as
the directors have been able TO see the
company is meeting the reasonable de-
mands of its patrons as rapidly as its
means and circumstances will permit.
These improvements every year require
the expenditure of large proportion of
the surplus earnings. In the opinion of
the directors the management is pursu-
ing a wise course in its endoavor to meet
the reasonable demands OF IT'S patrons.
The money being expended in the ex-
tension and betterment of tho sy stem Is
safely invested, and the returns of the
future will, they think, prove the wis
dom 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 development of coal mines, etc.
These mines, the report says, have not
only solved a great problem in afford
ing fuel for the system. but promise
surplus yield which will be n source of
income. The traffic arrangement with
the Chicago & Northwestern is ap-
proved.
1t is expected that the consolidation
of the several lines in Colorado during
1850 will give the Union Pacific access
to and control of large amount of
traffic from which 1t has heretofore
been excluded.
In view Of the necessary improve
ments 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 that the cost
of the Improvements made in the mean
time will greatly enhance the value of
the property. subject to the liens of the
government while they will exceed in
L. N,,h a.. A.
would have beenipaid into the proposed
sinking fund.
The total debt of the Union Pacific to
the government on January /, 1900
principal and interest, was $50, 902, 765.
This with the accruing interest, falls
due in the years ls95-ls99. The direct
ors say that the debt can not
be met at the time specified with
! out doing injustice to the hundreds
of thousands of people directly
and indirectly concerned in the welfare
of the system. In order to meet ITS i'm
prov ements and extensions the com
pany's line would have TO be brought to
II standstill. subjecting the people who
have settled along the system to serious
and perhapslirreparable loss, while tie
territory which naturally belongs to IL
to its more enterprisi1g competitors to a
large extent. The welfare OF the people
OF the West who depend upon the sys-
| tenn 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 read justment OF the
Indebtedness. The lighter the burden
the Union Pacific management is com
| PEELED to carry the easier will IL be for
| the management to meet the constant
demands of the people for greater and
better accommodations.
The report gives figures regarding
the mineral output OF the states
and territories tributary to the
the magnitude of that industry as a
single item, and says It is but a fore
taste of what the future is certain to
bring forth.
The best interests of the people of the
the great West should be considered
paramount to all others in the settle
ment 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. These peo.
pie are demanding not only that the
present first class character of the Union
Pacific shall be maintained, but that
every dollar that can possibly
be spared from its earnings shall be used
in the betterment and extension OF the
road, and they are acting within reason,
for the yearly increase in population and
business of their section requires extIa-
ordinary facilities. Consequently, there
IL no such thing as resting upon its oars
| possible for the Union until II shall have
| given the millions destined to spread
over the plains and mountains OF the
West and Northwest all the accommoda-