The Wichita daily eagle., 1897-11-09

both In the character OF the roadoeis
and in The condition Of the equipments.
During the year 1896, 7,5e0 tons of new
steel rails have been added to the track
ana during the current year Qss0, IL 900
additional tons have been purchased and
are now being placed upon the roadoed
The eas,eorn portion Of the Union divi-
sion is being thoroughly balEas.ed and
the properly from Omaha 20 the neigh
borhood OF Grand Island, ia miles, viii
compare favorabiy with many Of the
frst-class eastern railroads
The earnings and expenses Of the Un-
ion Pacific railway proper q, SD q miles)
for the twelve months ended June 30.
1897, and 1896, respectively, follow: Gross
earnings sl4.9i4,477 for 1897, increase
sS61, ,12s; operating expenses 50, ,44s.155 for
1897, increase 77.2l3; surplus $500. 3e1
for 1897, increase s1s3,9l5; taxes s573. $40
for 1897, decrease $500; surplus earn
ings 81, 927, ,6s1 for 1897; 81 735, ,657 for 1896,
increase 1892. 2.9o5.
Tna report goes into detail as to pro-
ceeding5 that led up to the recent sale
under foreclosure. and, under date OF
September 4, says from the then expect
ed realization from the foreclosure sale
OF TIE railroad property and of the sink
ing fund Of s45.754,Ose. 1t would follow
that the loss OF the United States will
be about s25, 900, ,Oo0
The government directors repeat their
approval OF the course OF TIE depart
mentot justice in accepting the propo-
sition Of the reorganization committee,
in ne .
the government directors have always
been firmly convinced that the owner
snip Of these railroads by the govern
ment would be most injurious to the peo-
pie, would result in gross inequalities
and Determinations in favor Of the ter
ritory served by them, and would be
prolific source OF political corruption,
they find themselves unable to consider
the subject from the point of view OF
government ownership, the report be-
ing addressed 10 the single question of
realizing the best financial return to the
government for the Investment. 1t Is
DOUBTLESS true, the report says. that the
reorganization committee and the de-
positors OF bonds and securities under
this plan will realize a large profit, and
larger 5han was expected by the origt-
nal proposition. The report concludes:
1--WE deem it our duty TO call atten-
tion 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. In view of
the remarkable advance in the market
value of many OF the collaterals included
in these mortgages, it is quite possible
that the foreclosure will leave surplusses
applicable to the part payment of the
general debts of the Union Pacific Rail-
road company.
'It is. therefore, to the interests Of the
United States to pay to the Union Pa
cif1c Railroad company all such assets or
surpluses as may result from the fore
closure of the collateral trusts, and all
of every form which is not COW
cred by the mortgages made by the COM
p3ny, to the end that the aggregate ot
general assets resulting to the company
may form the largest possible fund for
part payment of its general creditors.
(Signei) E. ELLERY ANDERSON.
j. w. DOANE.
JOHN SHERIDAN.
w. ]. COMBS.
JOHN T. BRESSLER