The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-05-01
Plans Of the Union Pacific Railway
Outlined at the Annual Meet
ing in Boston.
The Boycott Of the Alton Appar-
ently Has the Effect of In
creasing It's Receipts.
What a Railways Investigation OF Mon
tana's Prospects Develops-Millions
for improvements.

me Union EuCflC lSHuoA AVo AA~o -
port yesterday and it is not so u~nfavorable
az was expected, the deficit for whole sys-
tenn being only $275,0O0. This loss, Presi-
dent Dillon says, is due to a large increase
in the operating expenses, in part account
ed for by the fact that n larger amount OF
freight was moved at lower rates IN lS9O
than in 1889. The mileage OF the Union
Psciic system was increased January 1880,
bv the addition of a number of lines bring
ING it up to 3,O75. The earnings were $l2,-
3S39, 600, a decrease of $1,34s,OOO; total in
come Sl3, 4oO, 900, a decrease of $9S0,OO;
total expenditures $13,696.0O 0 increase
1890. 600. Net decrease in the Union "a
cifo's funded debt for the year was $S,l22,-
600; balance to the credit of the income ac-
count Dec. 81, 1890, So 74,0oo, against ST.
IA. 600 the previous year. The net floating
debt is Sc, s75, 1000, an increase OF $2,3s5,oW
over the year before.
At the meeting it was voted to approve the
c%ompany's acquisition of $13. 250,O0 O Union
Pacific. Denver & Gulf Railroad company
stock, ST. $50. 600 of the consolidated mort
gage bonds of this company, S3,265,ouO OF
the Oregon Short Line and the Utah North
ern five per cent. bonds and the collateral
trust bonds of the same company for 3D.
7b9. 600 and minor securities. The stock
holders then voted to approve all the dl-
~rectors' acts and to annul andssdeclare ultra
wires the famous Rock Island and st. Paul
bridge contract with the Union Pacific,
which it was declared had never been sub
mitted to the board of directors OF the
COMPANY or to the government directors.
The guarantee of $13.000,0O0 Oregon
Short Line and Utah Northern five pei cent
bonds was approved. 1t was voted to au-
thorize the directors to make use of the
treasury assests for collatera! trust bonds,
to pay the company's floating debts, etc.
The only change in the Union Pacific
board was the election of S. H. H. Clark in
place of Holcomb, whom he succeeded as
general manager. President Dillon says:
"For the collateral trust bonds the mort
gage is not In shape vt. and nothing can
be said about it." Another Union. Pacific
director says" '''The bond plan has not
Leen matured. We simply ask the author
ity so the board could act during the year,
if necessary. Gould has not promised to
take any of the bonds. The mortgage will
probably be for $25,0 O0,N CO, secured by. a
general mortgage upon the main line and a
particular mortgage upon our treasury
bonds"
The following officers were elected: Pres
ident, Sidney Dillon; vice-president, S. n.
H, Clark; second vice president, q. Nj.
Lane; comptroller, Oliver w. Mink: treas
urer, G. Harris: secretary. Alexander Mil
Ter. In adjourning the meeting, President
Dillon said: During the few years bave
left to stay in the world, l hope to see the
Union Pacific prosper and if with my feeble
voice and health ] can make it, it Will.
During the past wear something has beer
the matter. | coat say exactly what. With
dry weather and poor crops the road has
been like a man cut in halves. and one has
been trying to do the work of two. l think
with the present outlook for large crops,
the road will show large earnings this year
Jay Gould. in an interview. said the pro
posed new collateral trust five per cent,
mortgage will be limited to $75,OUO,O 600 bul
not more than ten millions will be issued
now. The Union Pacific credit is improv'
ing rapidly and we ought to realize nine
millions cash from these bonds. We can
not under the law mortgage the main line
to Omaha, but the new bonds will cover the
Kansas Pacific main line to Kansas City
as we'll rs the Kansas Pacific system ant
Denver Pacific. 1t will ultimately become
a first mortgage on the Karsas Pacific mair
line. 1t will also be secured by the Unior
Pacific, Denver and Gulf consolidated fiv'
per cent. bonds; by the Oregon Short Linz
and Utah Northern consolidated five pc
cents, and collateral trust five per cent
bonds, as we'll as other bonds in our assets
OF course I shall take some of the bonds
l do not know of a better security"