The particulars of new construction during the year ending December 31, 1885, are given on page 8. On the Union Division, aided road, the total expenditure was $31,322.55, but the account receives credit for $15,266, the value of property sold, leaving the amount to be charged against earnings $16,056.55. On the aided portion of the Kansas Division $6,404.59 were expended and charged against earnings. The Saint James street viaduct is built diagonally across the State line of Missouri and Kansas, three-fourths of the structure being in Kansas City, Kans., or on the aided road, and one-fourth in Kansas City, Mo., or on the unaided road. The cost of construction has been apportioned accordingly. The expenditures on the unaided road were as follows: Union Division, $12,510; Kansas Division, $4,587.74; Cheyenne Branch, $3,096.52; Leavenworth Branch, $3,730.56; or a total ex penditure on the lines of the Union Pacific proper (less credits) of $46,385.96. A statement of the expenditures for new equipment during the year ending December 31, 1885, given below, shows the amount expended for the system to have been $252,542.05, of which $175,963.26 was expended on account of the road owned by the Union Pacific Railway Company. As the company does not keep separate records of its equipment for each division, it was impracticable to determine the exact proportion of the expenditures each division should be charged with. But as the equipment is used in common by all divisions, the charge has been apportioned to each upon the basis of train mileage, as shown on page 9. Amounts debited to new construction and new equipment accounts of the following companie of the Union Pacific System during the year 1885. *Credit. Represents value of equipment destroyed or broken up and charged in operating ex penses Auxiliary roads.-The company operates twenty-one branch lines, in nineteen of which it has a controlling interest, The Union Pacific Railway Company had also, on December 31, 1885, outstanding certain "advances" to these auxil- 125, 874-96 94, 635 09 4, 090, 764 54 11, 562, 334 1540, 252, 000 0024, 080, 000 0020, 485, 253 70 32, 047, 587 851, 267, 737 2033, 315, 325 05 *Credit. Statement of income and charges of auxiliary lines operated by the Union Pacific Railway Company for the year ending December 31, 1885. The road is 12.8 miles in length, and is leased to the Omaha and Republican Valley Railroad Company. + Rental. Dividends were paid partly from accumulated surplus of former years. Dividends paid from surplus of 1884 and 1885. Deduct amount of deficit. Deduct amount of surplus. The net earnings of the auxiliary lines operated by the Union Pacific Railway Company for the year ending December 31, 1885, amounted to $1,366,491.08. The annual interest on bonds was $2,604,110. On two roads dividends amounting to $51,000 were paid on stock, all of which, however, was owned by the Union Pacific Railway Company, making a total for the year of $2,655,110, or a deficit from the business of the year of $1,288,618.92. That portion of the deficit, however, which represents unpaid interest upon bonds owned by the Union Pacific Company, is a mere book account or a charge against the several auxiliary roads, payable from their future earnings, and not money actually paid out by the Union Pacific Railway Company. It appears from the report of the Government directors in 1882 that the auxiliary roads of the Union Pacific system are allowed constructive mileage, and as such allowances, without the consent of the Government, seem to me illegal, and I can find no evidence that such consent has been given, Messrs. Walker and Warner were instructed to endeavor to ascertain, while examining the accounts of the Union Pacific. Railway Company, how much of such allowances was taken from the net earnings of the "aided" roads of the Union Pacific system. But the great number of the accounts and the short time available made it impracticable to prepare a statement of this business even for one month, but they brought to this office the means of showing hereafter the value of the investigation. The magnitude of these allowances is indicated by the following statement: Union Pacific Railway system.—Constructive mileage allowances. Julesburg Branch, for each mile carried East-bound, for each mile carried .......... Golden, Boulder and Caribou, for each mile carried. 50 cents per passenger.. 1 mile is allowed. 13 miles are allowed Local rates 14 miles are allowed 13 miles are allowed ..do ........ 2 miles are allowed .. do Greeley, Salt Lake and Pacific, for each mile carried. 13 miles are allowed Junction City and Fort Kearney, for each mile car- 1 miles are allowed ried. Kansas Central, for each mile carried Lawrence and Emporia, for each mile carried. Oregon Short Line, for each mile carried.. Salina and Southwestern, for each mile carried. Omaha and Republican Valley, for each mile carried. Local rates 1 miles are allowed .... do .do 3 cents per 100 pounds; $4 per car. 1 mile is allowed. 13 miles are allowed. 1 mile is allowed. Do. 13 miles are allowed. 11 miles are allowed. 1 miles are allowed. Do. 2 miles are allowed. Local rates. Do. Broad gange, 2 miles; narrow gange, local rates. 1 miles are allowed, 3 miles are allowed. 1 miles. 1 miles are allowol 13 miles are allaroi |