The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1897-11-19
u. S. DIRECTORS REPORT.
GOVERNMENT OFFICIALS OF
UNION PACIFIC ENDORSE
The Sale Of the Road to the "Reor-
Syndicate---A Sum-
mary Of the Report

Washington, D. c., Nov. 9.--The re-
port of the government directors of the
Union Pacific Railway company for the
year just ended has been submitted
to Secretay Bliss. A summary follows:
1.-THE physical condition Of the o
continues to show marked improve
ments, both in the character of the road
beds and in the condition Of the equip
ments. During the year 1S96-1S97 $500
tons of new steel rails have been adoed
to the track, and during he current
e 1897 II, 1000 additional ton have
been purchased and are now being
placed upon the roadbed.
1.-The eastern portion of the Union Pa
cifc division is being thoroughly bal
lasted, and the property from omaha to
the neighborhood Of Grand Island, TIA
miles, will compare faVolahly with
many of the first-class eastern rail
roads. The earnings and expenses for
the Union Pacific railway proper,
1929 miles, for the twelve months
ended June 80, 1897, and 1896. sespec-
lively follow:
Gross earnings, $14, 944,41I, for 1897;
increase, 1851, 1923; operating expenses,
SO, 443, 1855 for 1897; increase, $677, 213; sur
plus, IS, sol, 321 for 1897; increase, $1S3.-
915; taxes. $573. $40 for 1897; decrease,
sS,0S9; surplus earnings, $4,927,6Sl for
1897; 81. 5 657 for 1886; increase,
1892. 005.'
The report goes into details Of pro-
ceedings that led to the recent sale of
foreclosure under date Of September 4,
says from the then expected realiza-
ton from the foreclosure sale Of the
railroad property and Of the sinking
fund of $45. 504, 500, it would follow that
the loss of the United States will be
about $25, 900.
The government directors repeat their
r,,Jnv Of tho onrrr ,r tl, lnro p +
ment of justice in accepting the prop
ositiOn Of the reorganization commit
tee and in the foreclosure proceedings.
The directors have always been firmly
convinced that the ownership of these
railroads by the government YOU be
most injurious to the people, would re-
suit in gross Inequalities and discrimi-
nations in favor of the territory served
by them and would be a prolific source
Of corruption. They find themselves I'M
able to consider the subject from the
point of view of government ownership,
the report being addressed to the sin
gle question of realizing the best tinan-
cial return to the government.
1t is doubtless true, the report says,
that the reorganization committee and
the depOsitOrs of bond securities under
this plan will realize a large profit, n
larger than was expected by the orig
inal proposition. The report concludes:
w deem it our duty to call attention
to the fact that foreclosure suits AVE
been instituted for the sale of the Sc
curities under the three collateral! trust
mortgages made by the Union Pacific
Railway company. In view of the re-
~markable advance in the market of
many of the cOllateralS included in
these mortgages, it is quite possible that
the foreclosures will cay surplus APP
%plicable to the part payment of the
general debts of the Union Pacific Rail-
way p
ut is therefore to the interests of the
United States to secure to the Union
Pacific Railroad company all such Sc
%curities or assets as shall result from
the foreclosure of the collateral trusts,
and the property of every form which
is not covered by the mortgages of
the company, to the end that the gen.
eral assets resulting to the company
nay form the largest possible fund for
payment of it's general creditors.
"E. ELLERY ANDERSON.
u. w. DOANE.
JOHN SHERIDAN.
civilian J. COOMRES.
JOHN T. BRESSLER-"