The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1897-11-07
U. P. DIRECTORS REPORT
The Road Shows an Increase in
Earnings Over 1895.
THEY ENDORSE THE SALE


Washington, Nov. 6.-The report of
the government directors OF the Union
Pacific railroad for the fiscal year just
ended has been submitted Ia Secretary
Bliss. A summary follows:
The physical condition of the road
continues To SHOW marked improve
ment. both in the character of the
roadbeds and In the condition Of the
equipments. During the year lss6
$500 tons OF the new steel rail were
added 10 the track aud during the cur
rent year 17.0Oo additional tons have
been purchased and are nov being
placed upon the roadbed The Eastern
portion of the Union Pacific division
Is being thoroughly ballasted and the
property from Omaha 10 the neighbor-
hood Of Grand Island. Ia miles. will
compare favorably with many of the
first class Eastern roads.
The earnings and expenses for the
Union Pacific railway proper u.sss, -
miles) for the ~ months ended June 30.
1897 and 1886. respectively. follow
Gross earnings, sli.9il.iS7 for 1897, an
increase of sss1.l2s. operating expenses,
81. .443.15s for 1887. an increase OF $751;
2l3: surplus. &5.s0l.32l for 1897. an in
crease OF slS3.sl5: taxes. S5i3.6i0 for
1897. a decrease of sS.oss: surplus earn
ings. &927, ,6s1 for 1887. S4.135.655 for
1896. an increase Of si92. .0o5
The report goes into detail as 10 the
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 road property and sinking fund of
f45. .754, ,0ss, Il will follow that the loss
~ the United States will he about ss5.-
0O0, 900.
The government directors repeat
their approval OF the course of the de-
partment OF Justice in accepting the
proposition of the reorganization COM
mittee and In The foreclosure proceed
ings. A the government directors
have always been convinced that the
ownership OF these railroads 10y the
government would he most injurious TO
the people. II would result in gross In
| equalities and discrimination IN favor
OF the territory served by them and
would be a prolific source of political
corruption, they find themselves un-
able 60 consider the subject from a
point OF view OF government owner
ship. the report being addressed TO the
single question Of realizing the best
financial returns 10 the government fol
the investment. II is doubtles true. the
report says. that the reorganization
committee and the depositors Of bonds
and securities under this plan VIII real
ize large profit and larger than was
expected by the original proposition.
The report concludes: I'VE deem II
our duty TO call attention TO the fact
that foreclosure suits have been insti.
tuted for the sale of the securities un'
| der the three collateral trust mortgages
made by the Union Pacific railroad
company. In view of the remarkable
advance in the market value of many
~ the collatcrals included In these
mortgages. II IN quite possible that III,
foreclosure will leave surplus
applicable TO the part payment of the
general debts of the Union Pacific rail
road company.
1t Is therefore to the interests OF the
United States 10 secure the Union Pa
cific company all such assets or sur
pluses ns may result from the fore
| closure OF .he collateral trusts and al
property If every form which Is moi
| covered by the mortgages made by th'
company, 10 the end that the aggregate
of general assets resulting To the COM
pany may form the largest possibl,
fund for part payment "f its genera
| creditors"