New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-04-23
BANKING AND FINANCIAL.
Union PACIFIC AS AN INVESTMENT

UNION PACIFIC AS AN INVESTMENT.
TO the EditOr or The Tribune.
SIR: You may remember that addressed two COM
munications to some of the New-York papers IN re-
gard to the Union Pacific Railroad Company. In
the first Deb 26 called attention to the property
and smoke in hopeful terms Of its future. In the
second april p said that the gain in earnings of
thirty 3O Der cent for March represented increased
tonnage and that the effect of the advanced rates
would not be felt until April. How true my predic
ton was is apparent from the official returns for the
first two weeks in April, which show an increase OF
nearly sixty (GOl per cent and there was no more
business in these two weeks than may be expected
10 continue under ordinary circumstances. Sup
posing the increase to be only fifty 5Ol per cent, we
have gross earnings for the year OF $lo,o25,OOO
against $40 800, 600 last year, and this on road
which can he operated at less expense than any
other road in the country. My own opinion il that
the increased earnings will come nearer to seventy
five l75) per cent than to sixty l6Ol per cent.
Too little attention has been given to the lands OF
tlo Company, which alone even if the road could
not be operated at profit would make every secu-
rity Of the Company worth par. The land account
of the Company stands as follows:
Total land grant, acres
Total acres sold. i,iio-oo
Remaining on hand, acres..........1I ,O6i732
The IllJ.2OS acres sold are represented as fol-
lows:
Land grant bonds actually retired and oo,
Iand notes and cash on hand. ......... 2,s62O0O
Total amount realized. s., $4,000
The remaining IL OG4, 732 acres of land are be-
coming more and more valuable by the RAPID settle
ments along the line of the road
The Illinois Central Company had only agricnl'n-
raj lands, and how valuable they in time became is
now a matter of history. The Union Pacific has al
most five times AS much land, and nearly one-haf Of
il contains coal deposits of great value-maDy times
that of the best agricultural lands.
In this connection it should be remembered that
the Illinois Central furnishes the only precedent for
estimating the possible profit to the Union Pacific of
its land grant The Illinois Central had grant OF
1856, 900 acres Of which 100000 acres were set
apart for construction, 100000 to pay interest
on bonds and 345 900 left free Of incum-
brance Up to 1874, 2,274,212 acres had been sold,
which realized with interest $2i,99i,7GG. The
average rate per acre obtained was so 36 for con-
strcton lands $ll 81 for free lands and 81 "a for
interest lands.
If the whole grant to the Union Pacific were COM
posed merely of agricultural lands and the Company
obtained the same price that the Illinois Central got
for its construction lands, it would realize about
S12G, 900, 900. The coal lands of the Union Pacific
in Wyoming Territory cover an area greater than
the entire anthracite coal fields of the State of Penn
syvauia Properly, the value of these coal lands of
the Union Pacific should be measured by Pennsyl-
vania coal property rather than by the agricultural
lands Of the Illinois Central measured, the valua
ton of $l2G 900, 900 would DO diminutive rather
than excessive.
In any event the amount which is sure to be real
lied from the sale of the Union Pacific lands will not
only be sufficient to pay off the bonded debt OF the
Company, but would furnish enough to retire the
whole capital stock at par before the maturity Of the
Government lien, which thus becomes matter of
slight Importance 50 long as the stock rules at or
near par.
Is 1t strange taking this view of the Union Pacific
prOperty-and ii is the only intelligent view to take
that We in New-England confidently believe that
the stock and bonds of the Company ntrinscally
worth par aud overt
SToCKHOIDER.
Boston. April 30, 1875.