New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-03-25
UNION PACIFIC IN 1891
RESULTS ANALiZED-LOSSES AND GAINS
CHANGE IN THE MANAGEMENT
BRIGHTER PROSPECTS,

full fiscal year OF the Union Pacific under the
present management furnishes an opportunity to
fudge fairly what has been DONE to compare what
is known as the Gould with the Adams admins
tration which preceded it, and to consider the pros
poets Of this great property for the future 1t is
q railroad in which the public has always had
special interest, the fact that il was built by
means of government loan furnishing the basis
for vague sort OF notion in the mind of the
average voter that he Is in way an owner in
IT, 1t Is nearly five Years since Congress investi-
gated it the last time at cost of 81 90, 600 TO the
Government and as much more to the company
besides the expense of printing nine volumes-about
5000 pages-of testimony. II is almost time for
the champions of the oppressed poor to begin
having fun with il again. The Government debt
natures III about five years, and during that time
there will be abundant opportunities for cnterpris
ing persons OF unusual moral tone in the Street"
10 kndle some newspaper champion of the
poor into double leads and scare heads OH the
iniquties of its management. upon which Con-
cress having gone short of the stock start
other investigation. 1t is an open question
whether in the twcnty-four yeans since its compile
tion Congress has not had more fun with
it than anybody else even Jay Gould himself.
Everybody has had more fun than the
Boston gentlemen who held their stock while
1t was Topping around between 1870 and % with
q CELEBRITY and slippcrinesS that frequently gave
them a headache With the stock in the neigh
borhood of 45-6, however it is not safe short
sale and its iniquites will not be inquired into.
Should il go above 60, a great many friends oil
the oppressed would short it and with one voice
demand searching investigation. There are four
or five years of good fun in it yet for the cham
pons OF the downtrodden
Meantime what interests the public just now
IL Of tha partV no
results of the first year of the Gould management.
On the face of the December statement, which
covers the operations Of the year 1891. there APP
pears to he gain of 81 ,423, 553 apparently very
good showing The annual report for $50
showed that during that year the company came
short of it's fixed charges S275,036. 80 that II
there has been no change in fixed charges or the
returns from investments, there should be
surplus Of over ST. 90, 600 for the year, or nearly
two per cent on the capital. The precise amount
will not be known until the annual report is sub
United TO the stockholders next month. II is
circumstance of some significance In TINS connec-
ton that concurrently with this Handsome increase
in the net was decrease in the gross earnings OF
S53l47O So that the increase in net results
from the decrease in operating expenses OF
Sl955.O24 Great credit is claimed by the Gould
management for the economies by which this was
effected. To some extent 1t Is due But TWO or
three things are TO be taken into account in this
matter which might escape notice in superhclal
view
In the first place il is to be remarked that IN the
previous year according to the report of 1890,
issued after the present management came into con-
troll, there had been an increase Of 1851 1873 In
oneratina expenses over $50, and there had been
expended for betterments, improvements, and
enuipment IS 2s6. 900. There was splendid OPP
portunty for cutting down expenses For the
bctterments and equipment were all there
and have furnished facilities for carrying
q larger traffic than ever at much less cost
II. is understood that the expenditure
Tor betterments, equipments etc. during
1891 was practically nothing. There was no
new construction, purchases OF rails. no new
equipment, and as little money spent on the road
bed. stations equipment, etc, as possible inside
the danger point The expense ratio which, IN
the wear 1889 was reported as 6o.lS per cent ex-
elusive Of taxes, and, queerlv enough in the fol-
lowing wear stated for purpose OF comparison TO
he 81 so had been run up TO 6s.l6 in 1850 by the
cost of betterments and equipment, the purpose
Of which was reduce the pense ratio In future
below that Of $50. Under the present manage
ment it has failed 10 90 this II will be seen by
the December statement that the expense ratio for
1891 was over 6j per cent.
Tn view of The relations Of Mr.. Gould-who be-
yond any question controlled the management
and directed the operations OF the Union PACING
during the year-with other roads, and especially
with the Missouri Pacfc-in some sense COM
netitor-a further analysis of the financial results
o. 1891 may be interesting and perhaps suggest
Two H. was noticed that when Mr.. Gould re-
turned TO the Union Pacific on the day before
THANKSGIVING 1890, after an absence OF nearly
seven wears" with twice five thousand horse TO
thank the Count for his uncOurteous ride'-h
brought with him Mr.. S. III. III. Clark, Vice-Presl-
dent and General Manager Of the Missouri RACINE
who was Immediately installed in the same once
in the Union Pacific. He had held the position
under the former Gould regime. and was known 10
be devoted to Mr.. Could's interests. The sus-
picion awakened by this circumstance was allayed
to some extent by nebulous sort OF impression
that Mr. Gould really had comprehensive ana
far-reaching plan for harmonlzlng all the CLASH
ing railroad interests in the West and southwest
which would clear up the whole situation. ~
WAS believed also that he and his confreres had
,aken IN so much Union Pacific stock that he
could not afford to play tricks with the properly
or use il merely as a tributary to his Missouri
Pacific.
What Mr. Gould found in Union Pacific was
briefly this q very large floating debt, maturing
every day: the company borrowing money at hlgh
rates on call wherever it could get it, and the
securities which it offered as collateral, the mar
ket value of which two or three months before had
furnished safe aud ample margin for all the COM
panys necessities, diminishing daily at an alarming
rate The bulk of these were the issues OF the
subordinate systems tie Oregon short line and tie
Union Pacific, Denver and Gulf The ac-
cesson Of Mr.. Gould momentarily advanced Union
Pacific in the market. The cause of the advance
was attributed by cynical and uncharitable per-
sons to manpulatons not entirely independent OF
Messrs Gould and Sage. 1t is not improbable that
this was So That sort Of proceeding Is included
in the ordinary methods which pass current in
the street Nor is it improbable that Mr. Gould,
believing as he does in giving scattered owner
sbin, IN speculative properties embraced the OPP