New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-03-25

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matter of bookkeeping, it having been discovered,
somewhat ~ the surprise OF Mr. Gould it Is SAID.
that by the terms of the articles OF consolidation
the Union Pacific is obliged 10 allow such rates
In the division Of traffic cesary TO enable
the Denver and Gulf TO meet its fixed charges
Since this discovery corrections have been made
whereby the Denver and Gulf has been awarded
some 100000 extra on joint traffic.
This then is what careful analysis of tie results
of the first year Of ,he Gould management-so far
as they have been made public-shows. lhcy
seem somewhat suggestive 1t is not inposs be
that they have been brought abcut by purely nat
ural causes that there has teen no manipulation
of rates. unnatural diversion of traffic no queer
bookkeeping, nothing but Straightforward honest
nagement of the property in the interest Of
its own stockholders. Even If that be all true,
the fact remains patent and unmistakeable, that
the public does not believe it. And this Is a case
in which the prime factor far as the future
of this great property is concerned Is
what the public believe. Public con
fdence is absolutely essential in order to float IFS
securities and put it in a position to pay
it's debts, earn something Oh It's stocks
and be something besides tie football
of the Street" That confidence is lacking
Other causes contribute to this lack of con-
fdence. Stockholders have not failed to notice
the Oregan lines the Union Pacific lines in Kansas
and Nebraska under Mr.. Carks management have
hardly held their own in the respect of earnings.
in presence of the largest crops ever known, and
with all their competitors swelling their gross
earnings with each succeeding month. his, too.
when the large expenditures for equipment IN
! $50 had put the whole system in the best
possible condition for handling an enormous
traffic
II did not escape their observation that during
the very trying period in the summer OF s9l
when the plan Of providing for the hoatlng dcot
by the issue of the three ycars-colateral-trust
notes was under consideration, both Mr.. Gould
and Mr. Sage exhibited considerable reluctance at
taking their proportion of the notes and came
near defeating the plan by the conditions on which
they insisted 1t is known to stockholders that
Messrs Gould and Sage have disposed OF
all their notes, and that their present
holdings Of Union Pacific stock only nominal
The fact that their property is under the direct
management and absolute control Of a who
has only nominal interest in it is not especially
inspiring to stockholders When it is added that
that man is the largest owner In competitive sys-
tenn; that his general manager Of the latter.
always his unQuestionng subordinate and con
fdential agent. is general manager of their prop
erty as we'll; that this person with the response
bility of managing two OF the largest railroad
systems in the world j. chiefly employed in per
sonal attendance upon the private car Of his chief
when that functonary travels for health pleas
ure there would seem to be food for reflection in
the mind OF a thoughtful stakeholder. Nor is
there much that is reassuring in the circumstance
that the man in whom large trust is rcposed
is Mr.. JAY Gould.
In its physical aspects its connections, its posi-
blities, the vast range OF soils and climates ~
traverses between the Missouri River and the
Pacific Ocean and from the Gulf Of Mexico 10
Puget Sound, and the variety and volume of the
traffic tributary to it, the Union Pacific is the
finest railroad property in the world In Kansas. !
Nebraska and Colorado it has at least equal adj
vantages with the other great systems; II has
superior facilities for handling the traffic OF
Wyoming. Utah, Idaho and Eastern Oregon; ~
divides with the Northern Pacific the business of
Western Oregon and Washington; it has in It's
Central Pacific connection the best line ~ Cali
fornia: it has through line from the Gulf OF
Mexico TO Puget sound whereby it can give 10
the traffic Of that vast nermountain country
the advantages Of the nearest tdcwater com
munication; and it has along lis main line coal
deposits OF such quality and extent that with
proper mana cement the road could be made profit
able simply as the great coacarrler of that whole
section And on the 1893 miles Of this system
on the LIST Of January, 1901, the entire load OF
funded and floating debt by the report Of that
year was but S2s ,658 per mile The admnstra-
ton of Mr. Adams was not considered sue
cess but it certainly deserves the credit OF having
reduced the companys Indebtedness regularly each
year so that from $33.sl1 per mile in 1884 1t had
fallen 10 S2s.6js at the end Of his presidency
The gross earnings OF this company in 1890 were
s44.53s,2Ol in 1901 as has been said they were
o. In
pointed out by the increased earnings Of the Oregon
system and the decrease in expenses which followed
naturally the large unusual expenditures for better
ments and equipment In $50, the company earned
last year about 100000 on total business of
over $i4 100000
There is nothing in this statement n inspire
confidence. Stockholders onethird Of the stock
being held in London and Berlin-have been un-
pleasantly aware OF it for some time. Within
few DAYS steps have been taken toward eifectlng
a radical change in the management. Co-operat- |
ing with the stockholders is the bankers syndicate
of which Mr. Picrpopt Morgan is the head, through
whose means the floating debt was provided for
last summer by means Of the collateral trust and
the issue of the three years notes. AT the annual
meeting in April the directors who elected in
the Gould interest in November, 1890, |
will either decline reelection be |
dropped Mr.. Sidney Dillon, who has labored
during the past year with indefatigaDlc industry
for the welfare Of the company, admOnished by |
his recent illness Of the necessity Of withdrawing
from the active duties and large responsibilities
Of the presidents office, will decline reelection
and will be succeeded by Frederic L. Ames.
This is the most important step that has been |
taken by the Union Pacific for many years. Mr.
Ames il the largest stakeholder in the company, |
having inherited his interest from his father, the
first Oliver Ames to whom and his brother oakcs /
the successful completion of the enterprise IN 1861
was chiefly due. From the immediate financial
noint Of view he brings to this position the credit
and reputation of the weathiest man IN New
England But he does much more than this; ne |
brrOs TO the executive Office, through acqualht-
.eo with the companY's affairs: familiarity with |