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Union Pacific System

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UNION PACIFIC SYSTEM. The Union Pacific Railroad was organized 1 July 1897, un der an act of the legislature of Utah approved 22 Jan. 1897, to carry out the reorganization of the Union Pacific Railway Company,n and now includes the Union Pacific Railroad, the Oregon Short Line and the Oregon Railroad and Navigation Company. The northerly or main line runs westward from Council Bluffs (Omaha) across the central part of the State of Nebraska, a co-ordinate line running almost parallel, about 150 miles to the south from Kan sas City across the State of Kansas, and to Den ver, Colo., whence it trends northward, joining the main line at Cheyenne, Wyo. Thence the road continues westerly across the southern sec tion of Wyoming and to Ogden, Utah. From this point the system makes use of its subsidi ary, the Oregon Short Line, traversing southern and western Idaho, to Huntington, Ore.; and thence by the subsidiary Oregon-Washington Railroad and Navigation Company's road to Portland, Ore., and Seattle, Wash.

The total mileage operated, as of 31 Dec. 1917, was 7,714.97 miles, of which 3,597.80 is of the Union Pacific Railroad, 2,148.65 of the Ore gon Short Line, and 1,968.52 of the Oregon Washington Railroad and Navigation Company. The system is prolific of branches, the main lines covering 3,534.64 miles, and the branches, 4,180.33 miles. Besides these roads there is operated 302.22 miles of leased lines, and the company enjoys trackage rights over 254.30 miles of other railroads.

The total operating revenue for the calendar year 1917 amounted to $130,101,864; earned by the transportation of 9,315,764 passengers and 23,874,511 tons of freight. The passenger travel averaged 115.08 miles per trip, at a cost of the traveler of 2.326 cents per mile—aggregat ing in the year 1,072,053,66o miles and $25,207, 229. The freight haul average 448.3 miles per ton, at an average charge of 0.851 cent per mile — aggregating in the year 10,702,976,670 ton miles and $93,347,832.

The operating expenses for the year were $77,295,158, making the net operating revenue $52,806,706. Taxes amounted to $8,451,691, leaving the net operating income at $44,355,015. Non-operating income amounted to $13,170,361 and deductions for rentals, interest, etc., totaled $15,998,875, leaving the net income at $41,536,500.

Dividends to preferred stock amounted to $3,981,740, and to common stock (16.89 per cent), $22,229,160. The sum of $15,313,973 was appropriated for the road and equipment. • The equipment of the road on 31 Dec. 1917 consisted of 1,53g locomotives, with an aggregate tractive capacity of 52,714;182 pounds. Passenger coaches, mail and baggage cars num bered 1,150, of which 574 were of steel. Freight cars of all types numbered 41,247.

The entire investment in the road and its equipment on 31 Dec. 1917 stood at $632,

813,457. Investments in other companies totaled $268,733,986.

The total stock outstanding on the date cited amounted to $321,836,600 and the long term debt was $335,099,365. The credit balance of the profit-and-loss account was $124,354,104. The grand total of the system's resources was $921,273,292.

In addition to operating the railroad, the company operates four steamer lines: (1) Portland to Astoria, Ore., 98 miles ; (2) Astoria to Megler, Wash., 5 miles; (3) Riparia, Ore., to Lewiston, Idaho, 78 miles; and (4) Amwaco to Harrison, Idaho, 6 miles.

History of the Road.— The Union Pacific Railroad Company was formed "for the purpose of acquiring, constructing, and owning railroads in the State of Utah, and elsewhere, with spe cific authority to acquire the railroads, prop erties, franchises and land grants formerly be longing to the Union Pacific Railway Com pany? That corporation owned four divisions of railroad, with a total length of lines of 8,172 miles. In 1893, receivers were appointed for all lines except those owned jointly with other companies. Afterward, separate receivers were appointed for some of the controlled roads.

When the Union Pacific Railway Company was first placed in the hands of receivers, the bonds outstanding aggregated $78,470,000. In addition to this amount, the government sub sidy bonds amounted to $33,540,000. On this latter unpaid interest was $18,194, 000. At that time the share capital of the com pany aggregated $60,869,000. A short time af ter the receivers had taken possession of the property, legislation to guarantee a Federal government lien at 3 per cent was proposed in Congress. The security holders at the same time put forward a reorganization method. Both plans were defeated.

In 1897 the main line, from Council Bluffs to a point five miles west of Ogden, Utah, a distance of 1,048 miles, together with 70 per cent of the equipment, was. sold under fore closure and purchased by the reorganization committee, which, later, borrowed $44,000,000 from a syndicate. Following this event many extensions were made. In 1899 control was acquired of the Oregon Short Line Railroad. This purchase was followed by that of the Ore on Railroad and Navigation COmpany property. In 1901 by purchase of a controlling interest, possession was gained of the Southern Pacific Railroad Company and, three months later, con trol of the Northern Pacific Railroad Company was acquired. These interests it was afterward compelled to relinquish as in contravention of the anti-trust law. The Union Pacific has im portant connections with Southern California points by virtue of its affiliation with the Los Angeles and Salt Lake Railroad.