The sun. [volume] (New York [N.Y.]) 1833-1916, 1891-09-25
NEWS OF THE RAILROADS.
wHAr GOVERNMENT DIRECTORS SAT
AMOUR UNION PACIfTC'y TROUBLES.

AMOUR UNION PACIkTC'S TROUBLES.
The stock or Tributary IsWes shousa Not
Have Been Hypotheeated TO Gsar..tee
the Floating Debt-I shouia Pc Free iron
the Limitations Imposed Upoa H.
WASHINGTON. Sept. 24.-Goorge E. Leighton.
John +. Piummer. Jesse Spalding. Rufus B.
Bullock. and Joseph W. Paddock. the Govern
mcnt directors of the Union Pacific. have filed
with the Secretary Of the Interior their annual
report. Hero are some OF the points:
Though the operations Of the Union Pacific
Railway system for the year 1850 resulted In
decrease Of the net earnings to tho amount OF
81. 417,fA}2. the physical condition OF the prop
crty has bcen fairly we'll maintained. and tho
equipment has been largely increased. The
flrst ak months Of 1891 also show decrease
in net earnings. but in the latter months there
has been tendency to improvement. es-
pccially upon the Oregon lines and there Is
good reason to anticipate a better result for
the year.
THE causes Of this dimnution in the net
earnings were mostly OF u general character.
common to all the railways OF the West. and
arose chiefly from the exceedingly low rates.
The fact that tho increase OF about three and
ono half millions In gross earnings was effect
cd at an increased expense In cost OF operating
and maintenance Of about five millions renders
the conclusion inevitable that after making
full allowance for all local and exceptional re-
Guircments for increased expenditures largo
portion ofthe business OF tho year was secured
at rates involving absolute loss. However much
the States and Territories reached by the sys-
ing t" such results, the ultimate effect upon
tho financial stability 81 the corporation.
1.-THE event NJ the year has been the hnan-
cia embarrassment OF the company on ac-
count Il its inability To- carry its large floating
debit @n be1 ting Erfss Wns ss "na a
,Ss s%SSs; sss% Ss: st ~ o.
suit Of expenditures and advances in the con-
struct"n Of branch and t5[ihntary lines .E or
pose Of control. and was fully Represented
by sccpr rites in its treasury; But under tho
sas anaS the dspnss N ssm the on
dobt Of such magnitude. however well repre-
scented or secured. is always to he derlored as
from great monetary. disturbances. and must
be carried loans
with the security, offered
bake Paas IN n SAYING that the
dc Ss pa ths
Fse sG t@s Tshs .noas Gen
sny S 5sH 4, Ss9 Ss
Of every Stat s ana TsrIitory through shish il
mission wnafa have been nS Sountarys assent to
the bankruptcy Of the system. However much
thu peGS St p &h
the terms and conditions upon which, some
have been acquired might he open to discus JUS
q the Government. through that policy. has
has been enhanced"
The report then recites the incidents leading
G tho she aEa
directors reluctantly concurred in the scheme.
pr r 81
TO hypotheSate the stocks 81 the coal proper
there ties AND R M @f ss no n bH rtss
on account Of the high standing of the com
mittee but. In degree. It hazards the intesI-
auired time. might lead 70 it,. dsintecration
and loss OF its most valuable tributaries. They
The conditions prevailing at this time en-
the ns s9 70 mad" ny
fnowlsae. p The Union PaeIne Halfway AVS.
lions now imposed BY law: i l. vital " essen;
s these s ie0N" Ga ssfS
itself in fair competition with other
systems not SO hampered and restricted. The
Hallway in its relations with auxiliary or tribu
tary roads. is one Of expediants rendered neces-
sary by the limitations Of va rious statutes hav-
ing in view the security 81 the Government
lien; But the complex and involved methods
arising from branch-guaranteed collateral
trust and endorsed bonds has cost tho com.
pany a vast amount Of money fairly stated in
millions which = might have been i1 largo Dc.
own direct obligation. secured BY direct mort
seiye that the government Is in any, way bene-
Of Its own lien would be in the least impaired
by their removal Their only effect seems to
be to add to the burden Of the company in
ordinary financial ADMINISTRATION. and to that
mands upon it.
sound public policy should. in our. juds-
ment prompt the Government as a creditor 70
make such provision as to time end date Of
est to be paid. as may be within the ability Of
the company to meet. and Just and eQuit.
able under all the circumstances: but
az free and untrammelled as other, lines 70 de.
velop and extend it's system. The ability Of
the company to discharge it's obligations to
ns sda de be
Viii " and
Of tho system. and an extension OF the security
% th h either directly or indirectly
The nearly concurrent maturity. In the near
future. Of the underlying first mortgage bonds.
Of the debt to tho Government, and OF the coll
SlOO.OOOmo. is fact not to be overlooked or
disreRar,led. It presents possible conditions
which Wise foresight should amply provide
FOR. and in abundant season."
DITISIoN OF TRAFFIC 4 FAILURE