Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-12-27
UNION PACIFIC ANNUAL
Report Of the Financial Condition
Of the Road Made Public
Today.
Something About Its Part in Acl
quiring Control Of the North.
ern Pacific.
Action Was Taken to Protect Its
Interests and Business In
Northwest.

New York, Dec. 27.-The annual re4
port of the Union Pacific railroad, en-
bracing a statement of the financial
condition Of the Southern Pacific and
reference to the part Of the Union
Pacific in the affairs Of the Northern
Pacific was made public today. The
statement of the Union Pacific showed
the gross receipts for the year, ending
June 80, were s43.63s.1s1. Operating
expenses and taxes were S24,587.145, a
net income Of $22.172.o01 The gross
receipts showed an increase OF $780,
4S3. or 11.21 per cent of the operating
expenses and an increase Of $3,14O,93G
or 1856 per cent. The surplus was
s5,178,176, to which must be added
$761,0S0 earned in dividends between
April l and June 80 by Northern Pa
cific stock held by the company. The
statement Of the Union. Pacific i'm
cluded the operations of the Oregon
Short Line and Oregon railway and
Navigation Company. The statement
of the Southern Pacific showed a gross
revenue of s77.244.s9S; operating ex-
penses and taxes, S50,879,013. Rentals,
betterments and sinking fund and dis
counts absorbed $24,60S.S67 leaving
surplus Of s3.456.560. As to the acquire
ment of control Of the Southern and
Northern Pacifics, the reports said:
Developments in connection with the
constantly increasing traffic Of the
northwest and of the states of the Pa
cific slope and the vital Importance
of securing for the Union Pacific sys-.
tenn it's due proportion of tonnage and
revenue tributary to Its lines rendered
it essential, in the Judgment OF the
board Of directors, that steps should
be taken to xnaintain and protect the
position Of the system and to safe
guard its future against combinations
of other lines. In furtherance of this
policy and for the purpose Of develops
Ing and extending the business of the
system and opening Of new channels
OF Interchange, the directors deemed II
necessary to acquire s75.00.000 pal
value of the capital stock OF the South
ern Pacific Company, and $7S,10S,00G.
OF the par value stock OF the Northern
Pacific Railroad Company.
The report brought out the fact that
the title to the Northern Pacific stock
had been vested in the Oregon Short
Line Company and later provided TO,
the purchase by issue of purchase
money certificates Of Indebtedness
which are held by Union Pacific Rail-
road Company The table of securities
owned includes s61, 100000 of these
per cent certificates, none of which are
in the hands of the public. The bal
ance sheet, June 80, contained in the
statement of liabilities an item OF $685.
202,247 as current liabilities of the
Oregon Short Line. A foot note ex-
p1ained this was balance of indebted
ness incurred in acquisition Of secur-
tiles of other companies, and in new
construction. Current liabilities Of the
Union Pacific were ss,725.13o- A map
Of the Union Pacific system, given out
with the report, contained projected
line from Callentes Nevada. to Palm
Springs in Southern California on the
line Of the Southern Pacific.