Omaha daily bee., 1902-02-08
laneous 5,ei0,s6s
Total ........ .$144. 406, 361
New Investments.

New Investments.
An examination Of the list OF securities
owned shows that, with the exception OF
small adjustments. no other changes have
taken place. The cost, therefore. of the
above securities is s12s. SIS, 95s. The cost
price Of the Utah and Pacific stocks and
bonds is not stated separately, but deduct
ing them at par the balance. 1927. 4s0. 95s,
will represent the approximate cost Of
the Southern and Northern Pacific stocks.
This Is equal to an average of 1895 per
share. The Southern Pacific stock is held
by the Union Pacific company and the
Northern Pacific stock by the Oregon Short
Line. No separate balance sheets are pub
lished this year of the constituent compa-
MES OF the system, but 1t is possible,
with the assistance of the previous years
report, to construct balance sheets which
will be approximately correct. On this
basis an analysis Of the accounts OF the
Oregon Short Line shows that the, cost
Of the Northern Pacific stock amounted to
about $50. <oo. 900. or an average OF sos
per share for both preferred and ommon.
This leaves about s4s, 600. 900 as the cost OF
the Southern Pacific, equal 70 over $S7
per share. M
Critics can figure that the Union Pacific
has had to pay very high prices for it's
new Investments, which may correspond
ingly AFFECT its net income IN the future.
should the Northern Securities company go
through II will OF course. be able to dis
pose Of its holdings Of Northern. Pacific
at Sis, and II It receives 4 per cent on the
new shares, the transaction will net an
annual profit OF about t175. 900 over the
interest charges Incurred on account OF
A. .vw,kaua TFk4a L. an thu auanunnffon
that II funds its floating debt at q per
cent. The acquisition Of the Southern Pa
eide stock will. however. be a more ex-
pensive purchase unless dividends are de-
clared on Il soon.
Fixed Charges.
Considering the transactions ss > whole.
Il Is apparent that the Union Pacific has
incurred the following amount OF hxed
charges on account OF it's new Investments;
Increase in interest on funded debt .SS.HS2So
Increase IN interest on floating debt.
less amount received on account
of redemption Of Northern Pa
cine preferred .-......-.-..--.. Nl.Nj
Total ...............~..-.....N.s ss.S7s
Decrease In income on account OF
treasury bonds sold. less other
stocks and bonds redeemed or ac-
CURED l~eo'
Net new charges .H,saiss
A dividend Of 4 per cent on It's Northern
Pacific holdings will amount to 81. 1858. 2s2.
or II the Northern Securities company takes
Them over and pays the same rate on the
increased valuation the dividend will be
So. 2ss.676 Assuming that the Northern Sc
eurities company Is successfully carried
through the excess OF the new charges as
above over the dividend received will be
S1.570.t5s. This win have 10 be met By
increased earnings or by dividends received
on the Southern Pacific investment. A
dividend Of ? per cent on the Southern
Pacific stock will amount TO $500. 600. For
the last three years this company shows
an average net income Of Az per cent nsr
annum on It's stock. OF liza per cent after
ehAFging on extensive betterments. vsU