New-York tribune., 1904-09-25
The Financial World.

Throughout the week Union Pacific ba.
the centre OF the Wall Street stage. We s a'a
had aboundtag tales touching the eornor,,s~-'
affairs, most Of them extravagant enonys !.
disclose the ilegitimaey Of their origin n 49,.
not need the making Of fables to helm T-n,o-s
Pacific securities into investment favor. Wna.
the property is-what in it's expansion ii fs .1-s
to be-can supply every warrant that consarS,
tism requires.
The detailed annual report Of the conpap,-
June 80. 1903. does not issue for two or tb-,s
months yet; but quitting aside every considsrs
ton Of the phenomenal developments marE,r.
the company's growth during the past ssc,,
year,. there towers even at the beginnjnv -
this past fiscal year such record as finds bar5,-.
parallel. Succinctly summarized, these ar. ~.
1908 figures; Income aggregated 15.5T45a4 d
excess of operating expenses and fixed rhsrv..
Out OF this was paid for dividends IS 333 1eS.
set aside for betterments. past and future. 50
100000. and the balance. about S5OOOO0o u..
carried forward to the surplus or profit ana
loss account. bringing the total slrplus- o.
credit balance of profit and loss account IN Ia
ever S21 100000 even after charging -,
to profit and loss the debit balances growing ON,
Of discount on bonds issued account Of Northern
Securities deal. etc. This surplus is nearly aa
per cent on the total present outstanding COM
mon stock. The preferred stock cannot rscelv.
over per cent and it is non-cunnulative
The $90.OOOOOO par value OF Southern Pscss.
stock seems to be a free asset (uupIedgedl and
at present unprOductive OF revenue Bur =
dividend on it of per cent per annuln wouE
add to net revenue Of Union Pacific S3600ta
which is approximately 3 1-3 per cent on Tss
outstanding common stock of the Union Pacific
The immense expenditures for Improvements
by the Union Pacific within the past few yssr,
show already in net results. through econom.s
in operation and maintenance; and it is not eszv
to see how Union Pacific can avoid an increased
dividend on its common stock IN the earv
future. The conversion of all the outstanding
convertibles into common stock would. not
change the amount payable as interest or divi-
dends unless the dividend rate on the common
Is increased. and in that case the fact that the
convertibles are no longer fixed charge ahead
Of the stock is a valuable consideration.
The Union Pacific had in its Treasury Jun.
so, 1908. another free asset" S46 49fOGN
Oregon Short Line 4s. These bonds. which are
lien the Northern Securities stock. par
tieipate in any increase from dividends on
Northern Securities stock
This is but representative. It is difficult 70
estimate closely the value OF all the free as
sets" or equity in pledged assets, of the Union
Pacific COmpany-but At current prices the
Oregon Short Line bonds and the Southern Pa
cihc stock alone are worth approximately $780,
100000
And mark this: Herein are ignored faetort
which of themselvss-known developments slnct
June so 1903-are guaranty OF further extraor-
dinary benefits. Southern Pacifc's floating debt
Is paid Union Pacific reimbursed in tens OF mill
ions. while. in its new Southern Pacific pre-
ferred stock subscription right alone. Union
Pacific has a cash profit available in the open
market. approximating S2.5O0OOO. Here Is a
signifying sUmmary-taking 1903s earnings
compared with the figures now officially give1
out in advance Of the annual report for 1904,
UNION PACIFIC-YEAR TO JUNE 80