Omaha daily bee., 1902-07-18

We have taken out the land assets, valued
at $3.50 1895. and we are charged with
bad faith in doing so. The lands are sub
ject to assessment locally, and outside OF
the railroad property, and then. as the
schedule shows. the companies own water
rights and boats from Portland to san
Francisco, and we have made the best esti-
mate we can Of the value OF those at SO, O00,-
600, because they are subject to assessment
locally and outside of railroad property.
These two items, amounting to $3.50, $685.,
must be deducted. This leaves 1884, 297,-
1s6.6s. How Is this TO be divided1 ~ would
be ridiculously and manifestly wrong to ap,
ply this to the 5000 miles OF the Union Pa
cihc Railroad company. It covers the en-
tire mileage Of all three OF these roads. 1t
covers all OF this railroad property, the
railroad property Of these three companies.
We deduct the value OF the securities Of the
other companies. and to ind, under their
theory, the value OF the road, according to
the stock and bond issue, you must divide
this $254, 297, 1865 by the total mileage OF
the three roads, which is 5,57s.s, and this
gives US S45 ,574 as the amount OF bonds and
stocks per mile.
Mr.. Harrington has charged the Union
Pacific as the worst sinner Of all, guilty OF
fraud, aud other counsel have charged the
public of1cials and railroad o~fncials with
AohN ~ NIAm HIS ne Says Is because
the stock and bond issue is 500, 900 per
mile! Why, these gentlemen are not even
stately murderers or graceful assassine Of
the characters Of men-they are bungling
butchers. How s%upremely ridiculous is their
ccntentionl
Suppose the Lindell hotel in Lincoln was
owned by a corporation, capitalized for
800, 900, and the corporation called the
"Lindell Hotel company" and the Lincoln
hotel was owned by a corporation, capital
lied for 500, 900, and called the Lincoln
Hotel company" The Lindell Hotel COM
pany desires to buy the Lincoln hotel and
can get It for 500, 600. 1t holds a meeting
Of the stockholders and board Of directors;
records are made; they take corporate ac-
tion, increase their capital stock 500, 900
and with that buy the capital stock OF the
Lincoln Hotel company and become the
owner Of hat property. Mr.. Harrington
contends that the liabilities Of the LindeIl
Hotel company are $500, 900 Of stock issue.
and that the additional stock issued by the
Lindell Hotel company and the additional
stock which II purchased from the Lincoln
Hotel company are liabilities instead of as
sets. And, II we desire to find the value Of
the Lindell hotel by this stock and bond
Issue he would say the Lindell hotel Is
worth $500. 900. These mathematics are per-
fectly ridiculous, and yet this is the basis Of
the cry Of fraud. When you want 70 find
the mileage of ali the roads upon the stock
and bond Issue you cannot connne It to
Union Pacific mileage, 1t must extend over
all the property.
Let US make another compilation. Take
the last column on pages Is and 10. It
shows balance ahoat." That means out
side, not in the treasury of the company, not
owned by the company, but owned by out
| 9idara and ad0af Yo, will and Akak A.
Union Pacific and Its auxiliary companies
have bonds ahoat outstanding Of s24s, 22O, 900
and a total Of stocks afoat Of 1901, e3S, 74I.
These added make a total Of $449, 1853, 744 Of
stocks and bonds Of these three companies
outstanding.
What do these three companies have for
that7 They have the bonds and stock Of
all these other companies. You will ind in
the column headed Total owned by the
three companies the following:
Bonds of other railroad COM
Bonds Of other companies.... .. 15,S2I'' So 60
Stocks of other railroad com - :
sE RsaRis' or other companies npsa.:.. lS S: ;sss s SO g %
Or a. total .s1e7, Ola, 2sS 81
Grand total f.......".."....... 1877, 212, 9O2 81
which these three companies have in their
possession as assets and which represent
properties other than the railroad mileage
OF these three companies.
SO to arrive, IL you desire, at the vaIua-
tion Of the railroad property, according to
the stock and bonds. you must deduct from
the total stock and bonds afoat, Of S449,-
S5s,144, the amount OF the bonds ana stocks
representing the values OF the other prop
critics, $1s7, 212, 202. 81. which leaves $262, 647,-
641.33, and from this must be made a fur
ther deduction Of the land assets and water
| line assets amounting to IS, $50, 85s. 95. And
you have a balance Of 1854. 297, 1877. Ss, repre-
senting the railroad mileage OF the three
companies. Divide this by the mileage.
6,57e.SS, and It gives s45,5 74.
This is another way OF showing that the
stock and bond issue of this company is
$45,5 74 per mile. II your honors please, I
ask you to take this fourth annual report
and examine 1t In, every feature and in
every way. 1t has been put in evidence by
the REALTORS for the purpose Of showing the
stock and bond issue.
All Of the courts and counsel for REALTORS
say that the maximum valuation Is the
stock issued and bonded indebtedness. You
take the issue Of stock and the bonded
debt, not the current expense debt, and
that represents the extreme value Of the
property Of the corporation, and SO for that
PNNFNSS hhSy AoFC NahCh tue bIOCkb ana
bonds Of the Union Pacific for the purpose
Of showing that 1t is worth $120, 900 a mile.
But 1t Is not so. 1t Is not in the figures.
l call attention TO page 4 Of the annual re-
port, where reference is made to the issue
OF the convertible 4 per cent bonds. "Of
these convertible bonds Sc. 043, 900 have been
converted into common stock, leaving put
standing $685. 1861. 900. against which an equal
amount Of unissued common stock is re-
served" and now in the hands Of the
treasurer.
Mr.. Harrington, in his question to Mr..
Weston and Mr.. Stuefer, complained and
asserted that $40. 900, 900 OF the bond issue
Of the Union Pacific Land company had
been deducted In our statement. These
bonds are owned by the Union Pacific Rail-
road company and are deducted from the
total stock and bond issue because the
lands are assessed separately. You will
find In our statement that the Union Pa
cihc Railroad company's lands are also
deducted. They are not returned to the
state board for assessment. They are as
sessed locally In the different states in
which the lines run and in which the
lands are situated.
Mr.. Harrington, In the examination of
Mr.. Weston, says. Didn't you know, Mr..
Weston. that these improvements and bet
tarmanta wera maid for out NJ the aarnipga