The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-11-07
u. p. ROAD REPORT
SUMMARY FOR THE YEAR SUBMIT
TED BY THE GOVERNMENT
DIRECTORS.
THE FORECLOSURE APPROVED
STRONG OPPOSITION TO ANY GOV
ERNMENT OWNERSHIP OF THE
PROPERTY
9oME PORTIONS oUT OF DATE.
Report Prepared Before the Final
Bid Was Submitted by the
reorganization Syndicate.

WASHINGTON, Nov. 6.-The report
Of the government directors Of the
Union Pacific Railway company for the
fiscal year just ended has been sub
mitted to Secretary Bliss. A summary
follows:
The physical condition Of the railroad
continues to show marked improve
ments, both in the character Of the
road bed and in the condition of the
equipments. During the year of 1885,
$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 neighbour
hood of Grand Island, ia miles, will
compare favOrably with many of the
1iTst-class Eastern railroads. The
earnings and expenses for the Union
Pacific railway proper Q,S22,29 miles,
for the twelve months ending June so,
1887 and 1896, respectively, follow:
Gross earnings, $14,O44,477 for 1897, in
crease, 1856, 1923; operating expenses, So
443, 1876, for 1897, increase, $677, 219; sur
plus, $5,501, 321. for 1897, increase, $183,-
915: taxes, 1913, $40, for 1897, decrease,
s.. OS9; surplus earrings, 1927, 6S1, for
1887, 81, 1876, 657 for 1896, increase, 1892, COS.
The report goes into detail as to pro-
ceedings that led up to the recent sale
under foreclosure and, under date of
Sept. 4, says from the then eX-
pected realization from the foreclosure
sale of the railroad property and of
the sinking fund of $45, 754, 059, it would
follow that the loss of the United
States will be about $25, 600, 900.
The government directors repeat
their approval of the course of the de-
partment of justice in accepting the
proposition of the reorganization COM
nittee and in the foreclosure proceed
lngs. As the government directors have
always been firmly convinced that the
ownership Of these railroads by the
government would be most injurious to
the people; would result in gross inc
qualities and determinations in favor
of the territory served by them, 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
vestment. 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:
1--WE 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 Railway company. In view of
the remarkable advance in the market
value of many of the collaterals in
cluded in these mortgages, it is quite
possible that the foreclosures will leave
SURPRISES applicable to the part pay
ment Of the general debts of the Union
Pacific railway. 1t is therefore to the
interest of the United States to secure
to the Union Pacific Railway company
all such assets or SURPRISES as may re-
suit from the foreclosure of the col