The representative. [volume] (St. Paul, Minn.) 1893-1901, 1897-11-10

WASHINGTON, D. c., Nov. 6.-The re-
port of the government directors of the
Union Pacific for the fiscal year just ended
has been submitted to Secretary Bliss.
The physical condition of the railroad
shows marked improvements both in the
character Of the roadbed and In the con-
dition of the equipments. During the year
1896 $500 tons of new steel rail have been
added to the track and during the current
year QS9O 1900 additional tons have been
purchased and are now being placed upon
the road bed. The eastern portion of the
Union division is being thoroughly ballasted
and the property from Omaha to the neigh
borhood of Grand Island, 174 miles, will
compare favorably with many Of the first
class Eastern roads. The earnings and ex-
penses for the Union Pacific railway
proper ,S2229 miles) for the IL months
ended June so, 1897, and 1896, respectively,
follow: Gross earnings, $14.O44417 for 1897,
increase $S61 1923; operating expenses 50, 443 155
for 1897 increase $677,213; surplus S., ,501 ,421
for 1897, increase $1S3,915 taxes $573,64O for
1897, decrease $S.0S9; surplus earnings $4,927,-
6S1 for 1897 81, 1876 65 for 1885, increase 1892 005
The report goes into detail as to the pro-
ceedings 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 of the sinking fund of $45,
754.O59 it would follow that the loss Of the
United States will be about $25, 900.
The government directors repeat their
approval of the course of the department
Of justice in accepting the proposition of
the reorganization committee and in the
foreclosure proceedings. AS the govern
ment directors have always been firmly
roads by the government would be most
injurious to the people would result in
gross inequalities and determinations in
favor of the territory served by them, and
would be prolific source of political cor
ruption they find themselves unable to con-
slider the subject from the point of view
of government ownership, the report being
addressed to the single question of realiz-
ing the best financial return to the govern
ment for the investment. 1t is doubtless
true, the report says, that the reOrganiza-
ton committee and the depositors of bonds
and securities under this plan will realize
a large profit and larger than was expected
by the original proposition. The report
concludes:
I'VE deem it our duty to call attention
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 Railway COM
pany. In view Of the remarkable advance
in the market value of many CT the COL
laterals included in these mortgages, it is
quite possible that the foreclosures will
leave surpluses applicable to the part pay
ment of the general debts of the Union
Pacific Railway company.
1T is, therefore, to the interest of the
United States to secure to the Union Pacific
Railway company all such assets or sur
pluses 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 company may form the
largest possible fund for part payment of
its general creditors.
"(Signed) E. Elery Anderson, ]. w.
Doane, John Sheridan, VIM. j. Coombs,
John T. BreSSler"