The times., 1897-11-08

The Government directors Of the Union
Pacific Railway submitted their annual
report FOR the fiscal year ending June
30, 1897, to the Secretary Of the II
terror Saturday Afternoon. These direc
tors are T.. Ell,ry Anderson, W. Doane,
JOHN sheridan, William j. Coombs and
Jcffn T. Bressler
The directors set forth that the physical
condition of tie road continues TO show
marked Improvement, bothin the character
Of the roadbcd and in I he condition of the
equipment During The year 1896 1900
tons Of Lew steel rails We're added 10
the traca. and during the current year
$4,000 additional tons were purchased
and are being placed rpon the rOadbed.
The eastern portion of the Union diyis-
ION is being thoroughly ballasted, ana the
property from Omaha to the neighbor
hood cf Grand Island, l54 miles, viii
compare favorably with many of the first
class railroads OF the East.
The earnings and expenses of the Union
Pacific for tie year were Gross earnings,
$l4s94s, 477.36; operating expenses, So
43,l55.Sl, taxes, S513, ,64U.I5, surplus,
$4,927, ,6Sl.O0.
The report continues.
In pursuance Of the arrangement made
between the department OF justice and the
Reorganization committee, the details of
which were contained iu the special
port Of the Government directors made to
the Secretary of the Interior ana dated
January p, 1 1s97, two suits for the fore
closure of the mortgag lien of ne United
States or America have been Instituted
snd carried 10 final decree.
The first Of these suits affects the
Union diyisiOn-that is 10 say, all Of the
railroad between Council Bluffs and Og-
den.
the amount OF Indebtedness Of the Union
PacInc Railway Company 10 the United
States Of America, as fixed by the said
decree, was, on the LIST of Aprn, S97:
For principal So, 236 ,5I2; for balance
OF interest account, S30,3-5, ,yIS; total,
S57,1G2, ,43O.
The Government tdIrectOTsdesirc tC repeat
their approval of the course winch has
been followed blythe Department OF Justice
in accepting the Proposition ~ ne reoTgaui-
zatiOu cOmnIttee and in the institution
OF foreclosure proceedings The subject
matter IN queslIpa WAS Iul,- discussed in
the Senate If the United States during the
months OF June and July, I Ss7 The main
scope OF that discussion WIS, however.
based upon the assumption that IL woG!d
be desirable, as matter or policy for the
Government 10 control and operate the
railroads OF the Union Pacific Railway
Company On its own behalf and on behalf
Of the people.
the government directors have always
been firmly convinced that the ownership
OF these railroads bE the Government would
be most Injurious TO the people, would
result In gross Inequalities and diSCrilgioa-
lions IN favor OF the territory served by
them, and wOaid he prolific source of
political corruption, they rmd themselves
UHaltc 10 consider the subject from The
point Of view OF Government OWNERSHIP.
Our report Is addressed toths single cues
ton OF realizing for the Government OF tht.
United states the best financial return
Tor their investment IN this property
AZ D. doubtless true tnat tie reotganiza-
non committee ard The depositOrs OF honas
and securities under this plan VIII Te3IiZe Z
large profit iTom these tIausa cUiuns.
IL is also true that. by reason Of tl,. i'm
proved conditions Of our business. the
profit VIII be larger than was expect ed
when the proposition was origina Ilv made.
With al the facts before them. The GOV
ernment directors are satisfied that the
acceptance of the proposition and lie
course pursued by the Department Of JUS
tice has been wise, discreet. and advan-
taEeous TO the Government. Tie fact that
inns arrangement had teen made has been
open and public from that date. Tie stu
alton IS substantially the same as il the
sale Of the property lad been commenced
In January, 1897 the minimum bid then
made and the sale postponed for further
bids until October.
All the great rairCad corpora tions ana
Ilpahclal institutions have been enabled
durlng period exceeding eight uuntlis
TO examine the subject III all its de-
talls aud 10 make such necessary arrange
ments as 10 enable them, il they shouId
believe tile value Of the pronartv To b..
greater tIan the minimum bid, to make
better bid on their own Behalf.
In conclusion, they say:
II is Of course impossible for us "a esti-
mate with any accuracy what these zen
eral debts VIII aggregate. They viii
consist chiefly Of deficiencies resulting
from foreclosure sales ana Of Iiabilifies
anslng out Of the guarantee Of the prin-
opal OF OF the interest on bonds Of ran
roads formerly affiliated with the Union