The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-10-14
Gross Revenues Fell Off 81, 10000
During the Past Month,
And So. 1+5, 900 i'm the First Eight Months
of the Year. Compared with the
Same Period of 1892.
special to the INDIANAPOLIS Journal.

erty owned, controlled or leased by it. Mr..
Anderson is one OF the government directors
of the Union Pacific railway, having been
appointed by President Cleveland. Mr.
Clark is the president and Mr.. Mick the
controller of the road. They were APP
pointed on an application signed by the adj
ministrators of the estate of f. l.. Ames
one of the heaviest stockholders. The &C
ton, it is said, was taken for the purpose
of forestalling any suits which might arise
in the present depressed condition of bust
ness, owing to the inability of the road
to meet obligations about TO become due.
1t was the general expressed opinion that
putting the road into the hands of receivers
was best for the road and also for all cred
itors, including the government. The prin-
cipal aim of the applicants to preserve
the road as one system, and thus maintain
Its greatest value instead of allowing it
to be disintegrated by suits here and there.
1t is alleged in the application that the
defendant Is indebted for labor and ma
terial, due Oct. /. 1893. amounting to
A5o0,0OO. or Whereabouts, on which, if not
paid or provided for. the said company is
liable to innumerabe suits, attachments and
Judgments; that the gross earnings of the
Union Pacific system from the operation
thereof and from other property for the
business year ending Dec. 81, 1892, amounted
to the sum of s45, OPS. 176. 40, and the revenue
from other sources to 1854 1889, making
total Of s46573, &c., that its operating
and transportation expenses, rentals, In
terest, sinking fund and other charges
paid during the same year amounted to
$4,000 ,5SS.32, leaving a surplus for said year
of $685. 757.04. res .
1t is shown that it appears from the re-
port of the Union Pacific Railway Com
pany that from Jan. to July i, $685. there
was a falling off in the gross revenue of
the company for said six months of the
preceding year of $685. 1883, and a falling
off Of the net revenues of.the company for
the period OF 1888, O59.66. The orators
further showed that for the months of July
and August, 1893, there was a further fall
ing off in the gross revenues of S1,OOO,OO
and falling off of the net revenues for
the said two months, as compared with the
same two months of the preceding year, of
about S1,400,000 Further, that there has
been further falling off of the gross rev.
enues of the system for the month of, Sep
TENDER, 1893, in about the sum of $1500,0O0
as compared with the month of September
of the preceding year. Further, that,
appears from a statement made by the
financial and accounting officers OF the
Union Pacific Railway Company and Of the
Union Pacific system, covering the opera
tons Of the system for the eight months
ending Aug. 81, 1893, falling off in gross
revenues Of the system for the eight months,
as compared with the same months of
the preceding year, of about So, 145,000. and
a falling off in net revenues of the system
for the same eight months, as compared
with the same period of the preceding year,
Of about the sum of $2,5SS,000
WHAT THE OFFICERS SAY
Pesident Clarke. who appointed one
Of the receivers of the road, in discussing
the situation this afternoon said 1.-THE bill
for the application for receiver was not
unexpected, as the careful student of rail-
road operations in the past few months
must necessarily conclude after a review
Of the startling decrease in gross and net
earnings which Western roads have suf-
fered With the possibility of default in
the payment of interest staring us in the
face, the only thing to be done TO keep the
property intact was to file a bill of COM
plant praying for receivers and ask the
court to intervene. The property will be
managed fer the best interests of all con-
cerned. Beyond this there is little to say,
the court now having taken the road under
Its protection
General Solicitor Thurston said: the unex-
pected and surprising falling off of business
on the system, the stagnation and depres-
sion throughout the TranSmissouri territory
convinced all the parties interested in the
preservation and integrity of the property
that IL would be impossible to meet the in
terest and other fixed charges soon coming
due. and that therefore the system would
De subject to different actions in different
jurisdictions, which might, and probably
would, result in the depreciation of the
property The present action virtually CON
tinues the management. giving 1t the ad-
ditional sanction and authority of the court
and preserving the properties for the real
interest of the creditors and bondhoIders
The order in the case Is almost Identical
clfic case by the United States circuit for
the district Of Wisconsin and supplemented
by auxiliary orders in all the United States
ciilc road as well as In New York The re-
ceivers are in full possession of all the
properties and the various officials of the
them. The court in determining
the personnel of the receiver lsiii
count OF their well-known familiarity with
the property, their peculiar fitness for the
position and the confidence of the stock
holders and creditors well as the gen
eral public, in them as managing officiaIs
The court further insisted that the imnor-
tant interest of the government in tie
property should be represented in the re-
Ownership in order TO fully protect the gov
ernment's revenues and 10 see that the
management was Oh SUcn character a
preserve the government lien. 1t selected
therefore, as third receiver Mr. EIlerv An
derso1, whom Mr.. Cleveland recently an
pointed as government director and who
became thoroughly familiar with the pron-
critics during his service as a member of
the Pacific railroad investigating commit
tee appoin&d' by Mr.. Cleveland some wears
since. Most OF the preliminary operations
have been conducted in the East and the
endeavor has been to complete the pro
ceedings in such a manner that the first pub
&c information would come after the re-
ceivers were in possession. This will pro
tcct the stock and securities from any de-
probation which might have followed the
announcement that papers were being pre-
pared for the application to be made
At the headquarters OF the road the blow
has been expected ever since the meeting
OF the board Oct TO- The bonds OF the
receivers were placed at $4,000 each
A dispatch from Denver says: Ex-Goy
John Evans, who was holder OF
100000 OF the stock OF the Union
Pacific, Texas q Gulf road, recently
brought suit against the Union
Pacific for accounting and the appoint
rcnt OF receiver. Is at present In Chica-
this afternoon said: The appointment of
Messrs. Clarke, Mink and Anderson will
in no way complicate case Our APP
plication a prior one TO this, and one
10 which Mr.. Ames was a party I'm suit
Judge Hallett, of the United states court
can, when our case comes up for hearing