The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-11-07
Report Of the Government Directors
For the Year.
INCREASE IN THE EARNINGS
PHYSICAL CONDITION OF THE
ROAD SHOWS IMPROVEMENT.
Property of the Oregon Improvement
Company Sold For Million
Project to Build Forty-Mile
Road to Be Financed by Trust
Conpany-The Latest by Wire.

Washington, Nov. 6.-The report of
the government directors of the Union
Pacific Railroad company for the fiscal
year just ended has been submitted to
Secretary Bliss A summary follows:
The physical condition of the road
continues to show marked improve
ment, both in the character of the road
beds and in the condition of the equip
ments. During the year 1896, 1900 tons
of new steel rail were added to the
track, and during the current year H.
coo additional tons have been pur-
chased and are now being placed upon
the road bed. The eastern portion of
the Union division is being thor
oughly ballasted, and the property
from Omaha to the neighborhood of
Grand Island ia miles, will compare
favorably with many of the first-class
eastern railroads. The earnings and
expenses for the Union Pacific railway
proper Q,S22 20 miles, for the II months
ended June 80, 1897 and 1895 respectively,
follows:
Gross earnings, $14944, 457 for 1897, in
crease, 1851. 1923; operating expenses, So
443. 1856 for 1897, increase, $677, 213; sur
SSsSNj
915: taxes, $573, 740 for 1897, decrease,
S. OS9; surplus earnings, $4,927, 6Sl for
1897: $4735, 655 for 1856, increase, $l52,-
I 005.
The report goes into detail, as to
proceedings that led up to the recent
sale under foreclosure, and, under date
of Sept 4, says from the then expected
realization from the foreclosure sale Of
the railroad property and sinking fund
Fol loss
of the United States will be ABOUT va
! 900 900. The government directors re
| peat their approval of the course of the
! department of justice, in accepting the
| proposition of the reorganization COM
mittee and in the foreclosure proceed
( ings. AS the government directors nave
! always been firmly convinced that the
| ownership of these railroads by the
! government would be most injurious
/ to the people, would result in gross in
CAPABILITIES and determinations in favor
! of the territory served by Chem, and
would be a prolific source OF political
corruption they find themselves unable
| to consider the subject from the point
! of view of government ownership, the
report being addressed to the single
question of realizing the best financial
return to the government for the IN
yestment9 1t is doubtless true, the re-
port says, that the reorganization COM
mittee and the depositors of bonds and
/ securities under this plan will realize
a large profit and larger than was eX-
pected by the original proposition.
The report concludes:
eve deem it our duty to call atten-
| ton to the fact that foreclosure suits
have been instituted for the sale Of the
securities under the three collateral
trust mortgages made by the Union
! Pacific Railroad company.
I'm view of the remarkable advance
in the market value of many OF the col
laterals included in these mortgages,
it is quite possible that the foreclosures
/ will leave SURPRISES applicable to the
part payment of the general debts OF
the Union Pacific Railroad company.
TT is therefore to the interest of the
United States to secure the Union Pa
cific Railroad company all such assets
or SURPRISES as may result from the
foreclosure of the collateral trusts and
all property of every form which is not
covered by the mortgages made by the
company to the end that the aggregate
of general assets resulting to the COM
pany may form the largest possible
fund for part payment of its general
creditors.
(Signed.)
e. ELLERY ANDERSON,
]. w. DOANE,
JOHN SHERIDAN,
Wy CnnMPC