New-York tribune., 1891-04-30
THE UNION PACIFIC.
ANNUAL MEETING OF THE STOCKHOLDERS
IN BOSTON.
PRESIDENT DILLoN's REPORT NOT AS UNFAvoR-
ABLE AS ExpEoTED-EARN1Nes AND Ex.
rENsEs--THE PROPOSED NEW
M0RTCACE

ABLE AS ExPEcTED-EARNINGs AND Ex-
rENsEs-THE PROPOSED NEW
MORTGAGE.
Boston, April 2o.-The Union Pacific issued its
annual report to its stockholders to-day. 1t is not
upfavorabIe was expected the deficit for. the whole
Nstem being only S275 ,o36. This loss, President
Dillon says, "is due to the large increase in the
operating expenses Of the system. The increase in
operating expenses is in part accounted Tor by the
fact that a larger amount Of freight was moved at
lower rates In 1890 than in 1885, If the percentage Of
operating expenses gross earnings had been the
In 1890 in 1880 the system would have shown
surplus for the year OF $2479,976 after payment Of
all charges instead Of a deficit of 1875. .036.7
Figures for the UpiOn Pacific proper are based upon
the mileage last year. bat the mileage Of the
Union Pacific system increased January l. 1890
by the addition of the ST. Joseph and Grand Island
Kansas City and Omaha and the o. r. and n. rail
lines, and on April /. 1890 by the addition Of tho
Union Pacific, Denver and Gulf, Fort Worth and Den
yer City and Panhandle Railway lines. This brought
the mileage of the system up 10 1899 which gross
earnings S43,049.24s and net S12,o3s,os4 in
1890 against gross Of $50, 900 and net Of S13
e5e,o47 in 1885, The percentage of operating ex
penses to gross earnings II 81 against 655s The
operations Of the system given below, however, are
made up on the above mileage, plus 366 miles Of
Central Branch 175 miles Jointly owned, eighty
seven for Union Pacific, total Of AIS, and a grand
total Of s,075 miles Of rail lines.
Union Pacific proper 1921 miles)-Gross earnings
sooA3s 209 increase 1862 265o net earnings, 81 ,274
$50, decrease S1o11 800 surplus, $1,686602, de-
crease seo6,74s
Union Pacific system (s,O75 miles)-Gross earnings,
s536 POI increase SO 597 ,13s; net earnings, s12,
3a9,oe6. decrease s13s4 493 total income S13,420,
$50. decrease $930,745 total expenditures $13,695,
s67, increase S320,o55; deficit S275,037, against O
surplus Of $075, 1856 last year.
During the past year 1901 900 Kansas Pacific con-
sohdated bonds and 81 $4,000 Union Pacific sinking
fund eight have been paid from proceeds of land sales,
leaving outstanding S659O 900 sinking fund eights at
close Of year. The proceeds of land sales subject to
this mortgage will be sufficient eventually to retire all
the bonds and leave a surplus TO the company of
90 10000. The estimated value Of the lands sub
ject TO the Kansas Pacific and Denver Pacific
mortgages, contracts cash and interest to accrue, is
S16,966,419. The net decrease In the Union Pacific
Company's funded debt for the year So 121 200.
The balance TO credit of income account December 81,
1900, was $9,473,9s9, against 81, ,714,355 previous
year. The gross floating debt of the company
amounted to S21, 004. OF this, $10,162, ,234 was
bills payable, in which item there decrease Of
81, ,5o1, 600. The net floating debt $6,S74941
against S4 4s9563 December 81, 1885, increase of
S2,3553
The gross earnings per mile from the whole system
5515 against So 069 the previous year. and the
earnings 81 ,527, against 81 500 in the pre-
ceding year. Tho total tons of freight moved the
and carried one mile, $3.50, ,147 o13, against 2,O57
141 359; average rate per ton per mile was 1881.
cents against 1405 cents The average rate per pas
senger per mile 1856 cents against 2414 cents in
1850. The number of stockholders has been reduced
from 4,946 TO 4e90 Massachusetts, holds 25 per cent
of the stock, compared with 26 per cent year ago.
Foreign holdings increased from 17100o shares 10
100000 shares, and NewYork holdings decreased from
$4,000 to 2Is,OOO shares.
President Dillon called the Union Pacific stockhod
ers' meeting to order at 10 20 in the Ames Building,
and at 10 26 the polls declared opened for two
hours for the 100 stockholders present to choose fifteen
directors 1t was Immediately voted to approve the
company's acquisition of the S13 25O,000 Union Pa
cfc Denver and Gulf Railroad Company stock,
S7,190,000 consolidated mortgage bonds of this COM
pany, the s3 3265,oO0 Oregon Short Line and Utah
Northern per cent bonds and collateral trust bonds
Of the company, for S4,759,000 and minor secri
ties The stockholders then voted TO approve all the
directors acts and 10 annu and declare ultra wires the
famous Rock Island and st. Paul br fge contract with
the Union Pacific which, 1t was declared had never
been submitted to the Board of Directors of the com
pany or TO the Government directors. President Dill
lon declared this bridge contract unfair and never
properly inspected or passed uponu Mr.. Dillon also
said that Mr.. Gould, Mr.. Ames and himself would make
an inspection Of the road about May 10 or 20. "And
il there IS rotten limb there, / will cut it off, If
there are supeTnumeraries high wages we will cut
them off. There has been" he continued "a nat
uraI tendency the past few years to go up, up, up
Now must come down to the bottom have been
with this company from It's infancy and now want to
see il prosper"
The guarantee of S13 900 900 oregon Short Line and
Utah Northern 5 per cent bonds approved 1t
was voted TO authorize the directors to make Of the
treasury for collateral bond pay the
company's floating debt etc. No amount or special
assets were stated.
The only change in the Union Pacific Board was
the election of S. H. H. Clark in place of Mr.. HoI.
combe whom he succeeded as general manager.
A Union Pacific director said: The bond plan has
not been matured. We simply asked authority so that
the Board could act during the year necessary The
mortgage will probably be for $25, ,O00 and gen.
eral mortgage upon the main line and particular mort
gage upon our good treasury bonds"
Jay could said 10 a representative Of 1" The Boston
News Bureau" to-day 80 The proposed new collateral
trust per cent mortgage will be limited to $25,000,
OOO but not than $lO,00O,0OO will be issued at
present 1t may not be necessary to make any stock
bonus with the issue, the Union Pacific credit is i'm
proving 50 rapidly, but as yet nothing has been de-
termined about any stock issue. We ought to realize
100000 cash from these bonds. There can be
nothing better than the security we propose. We can
not under the law, mortgage the main line to Omaha
but the bonds Will cover the Kansas Pacific main
line 10 Kansas City as well the Kansas Pacific sys
TEN and the Denver Pacific which carries the Kansas
Pacific to Cheyenne. 1t will ultimately become first
mortgage upon the Kansas Pacific main line. There
outstanding SoI iVOO hdHSdS
mortgage bonds, due in 1880 and the sinking fund
now in the hands of the trustees together with the
Kansas Pacific lands, will, figure, amount at the
maturity Of the bonds to such sum as will not only
pay of these bonds, but leave a surplus OF $o,lI9-
600 The new mortgage will also cover the
bonds held by the Kansas Pacific trustees
They will also be secured by Union Pacific Denver
and Gulf consolidated per cent bonds, of which we
have 81 600 In the treasury by Oregon Short Line
and Utah Northern consolidated per cent bonds, OF
which we have IL s11 600 by Oregon Short Line and
Utah Northern collateral trust per cent bonds, OF
which tho Union Pacific treasury has 900, and
hy other bonds which set down In the report among
our S4 727 900 of bond assets These bonds will be
used as may be needed in the new collateral trust
MORTGAGE and shall also the new bonds issued
upon the Union Pacfc's coal properties OF course
shall take some OF the bonds. don't Know oeuer