New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-09-25
r, J. Horner & Go,
UNION PACIFIC'S GOOD YEAR.
REPORT OF THE GOVERNMENT DIRECTORS.
ECONOMY GIVES INCREASED NET EARNINGS
THE COLLATERAL NOTE TRUST.

ECONOMY GIVES INCREASED NET EARNlN"o-
THE COLLATERAL NOTE TRUST.
Washington, Sept. 24.-Thc annual report OF the
Government directors Of the Union Pacific Ralway
has been received by the secretary Of the INTERIOR
All things considered, the condition OF the property Oh
the company Is stated to be In the highest degree saus
factory. Its business has been conducted with the
strictest economy It's expenses. even on an In
creased volume Of business, largely reduced Not"i'h-
standing this reduction the physical condition OF inc
road and equipment has been fully maintained, ana
even improved Much expenditure has been made dur
ing the year the beterment OF tracks by baahtlng
lengthenlng ont of curvaures. renewal Of ties, re-
newa of rails etc. The general business Of the conf
pany, both in gross and net, has improved. From
local causes operative in the Northwest the oregon
lines have suffered a considerable loss OF earnings but
the large and general improvement upon all OF the other
portions Of the system has than compensated for
it, and promises gratifying Increase OF earnings Tor
the whole system for the current year.
Thaaboad deprecaes the practical abandonment OF
the rods In construction two years ago IN oregon and
Utah, and expresses the opinion that they were wisely
projected and would have been Of substantial value
the general system. and to the communities In which
they are located The recent decision Of Mr.. Justice
Field affirming the right Of the Northern Pacific Com
pany To decline haul the Of the Union Pacific
over its lines in Oregon and Washington, II Sustained
on final hearing. will. the board declares. make the
completion OF the Puget Sound road a necessity.
Under the express covenants Of the trust no extern
sons have been made no leases guarantees OF any
kind have been assumed bonds issued extended or
indorsed upon any part OF the system since Scptem-
bcr 1901. While this provision Snccessariy puts
complete stop all development OF the property. how
ever necessary desirable. It's wm under prevail
ing conditions. the report says. m1st be admitted
For the Union Pacific proper. the earnings and eS-
penses for the six months ended June 30. lSc2, are
stated to have been follows: Earnings. So,9O9.-
npO. q = A ~ nrrlnc :
Is an increase in earnings for the year Of S2'22'2'
and a decrease in expenses of S1oo,374. making
net increase in surplus for the year Of T4io,o4'
For the entire system the earnings were Sl0,07s2'3
and the expenses $l3.404, J04 This is an increase
in earnings for the year OF So4OoOo, ana decrease
In expenses Of Sl59,435.
Unofficial and incomplete returns for the months of
July and August indicate continued gain in gross
earnings, and improvement on TIE oregon 1nes'
and 1t is regarded probable that the net results
for the present year will show substantial gain over
the las. Referring 10 their report OF last year. the
board says that the scheme adopted for the funding
Of the floating debt into three year collateral notes
was entirely successful In It's immediate purpose OF
relieving the company for the time For the pres
ent, the company has no floating debt, and Is amply
able to meet its and sinking fund charges from
It's earnings. But the early maturity OF the collateral
notes, the debt due the United States and the first
mortgage bonds present grave situation to be pro
vided for in the near future.
AS TO the collateral note trust, the board is in
formed that OF the amount Of notes authorized there
was issued sic OOO and that OF the asscs pledged
with the trustees sales have been made In the year
which has elapsed the amount Of SJ4SOOO which has
been applied pro tanO 10 the purchase OF notes leav
ing balance now outstanding OF S1s1s1 900, having
less than two years to run. That slch n SMALL
amount only should have been retired In year sug
gcsts 10 the board that there must be some strong
reason why the committee have not accomplished
more fully the purposes In view in the creation OF the
trust, which by It's terms contemplated liquidation
OF the notes as rapidly rs may be and within the
period. Continuing, the board says
We think the fact may we'll b., stated. for II Is
a fact apparent 10 the slightest observation OF the
course of tbs trust. well OF the conditions pre-
ceding IL for year more. that no satisfactory
negotiation OF the assets, however valuable they may
be- can he successfully conducted In the face OF the
uncertainties OF the near future growing out OF the
relations OF the company to the Government.
Ne therefore feel compelled ngain urge that the
present state OF uncertainty should be brought to an
end 1t Is disastrous to the security, 10 the company
and TO the general public. Upon a fair and Just
aDgernent for the extension OF tie debt due the
not be amply secured and finally paid In ful. but the
chances for securing this result not improved
through non-actiOn or by allowing the credit Of the
company to. be hOpelessly broken or even seriously
is reac he'd the more certainly will the Govern
ment be secured and the ability OF the company to
paw be firmly established.
The report is signed by George Y. Leighton. Rufus
r. Bullock and Joseph W. Paddock. Directors Spauld
ing and Plummer absent from New York, and II
was not thought necessary TO delay the report until
their return.