New-York tribune., 1905-01-01
tsrnents. editions. new equip
mentss ete.......................... 3.550.000
Balance forward to surplus FOR ths

- n. .sss ssae5
Balance forward to surplus FOR ths
year A713 k55.sL
This amount added to TIE balance standing 90
the credit Of profit and loss last year brings the
total surplus credit up TO over $26OO0OOO.
Union Pacific common stock in the hands OF
the public aggregates s1Os.7709O0: preferred
stock 500. .55S. 800.
Notwithstanding expenditures for bett>rmsnts
extensions. satisfaction OF mortgages. etc.
charged to capital account. amounting TO over
$4.OD0OOO the credits to capital account from
earnings, land sales and adjustments arising
from sale of Utah Hnes) were Sj.7sO981 In az
cess OF the charges.
The S9OOOOOOO Southern Pacific common
stock remains a free asset in the Union Pacific
treasury. The right to subscribe to S1S.OOo.OOO
Southern Pacific preferred at par provides a
way for the Southern Pacific 70 repay most OF
it's borrowed money to the Union Pacific. and tho
latter gets a free asset. the market value OF
which apprOximates 100000.
OF the $50. .491. 900 Oregon Short Line Rs Is
sued against Northern Securities stock S45.991.-
900 belongs to the Union Pacific. and S12.S52OOO
thereon Is IN use as collateral and $50. $4,000
apparently remains free In the treasury.
The S2O4bO927 due from Southexs. Pacific and
the S27 553S14 stated as having been put into
new lines and equipment show also in ths report
as free assets. Against these the Union Pacific
owes $1O.OOO.00O. due IN February. and s13,-
12S.OOO sundry other bills payable.
Other noteworthy free assets arc the fonow1nzi
Pacific Express stock. $4,000: Occidental and
Oriental Steamship stock. s6759.OO0: sundry union
depot and other stocks. $4,000: sundry railroad
bonds. S. 500. .0OO-making a total In themselves sf
a22 10000.
The report shows a total Of ss42.5S7. 500 bonds
and stocks owned. Of which n5s.111.7O0 are
wholly unpIedged. The actual value OF these
pledged securities and the equity or margin"
in pledged securities are, Of course. matters not
to be determined by an outsider. But certainly
it does clearly appear that there is already more
than enough income from investment sources
independent OF transportation operations) 20
take care Of the annual dividend on the pre-
ferred stock and approximately enough TO cover
the present rate OF dividend on common stock
without considering at all the accommodating sur
plus from transportation earnings.
The Union Pacific should have In its treasury
nearly s46,0OO.OOO Oregon Short Line As after
paying it's loan maturing February !. assuming
that new As will be accepted for the participating
As called that date. II instead OF taking these
bonds it takes the Northern Securities stock un-
deriving, then it gets something. the present
market value OF which approaches $62.00O.00O.
Moreover though there be no citation OF It
in the foregoing classification OF investment
holdings, Union Pacific owns SS2.OO0OOO OF
Northern Securities stock. 1t cost Union Pacific
$50 per share. 1t sold this past week and closes
near 13Nshowing profit OF $50 per share-
one concrete profit of over $40.O0O,O0O for Union
Paciic's investment account-already equaIling
and providing through this one transaction
alone Union Pacific commons present per
cent annual dividend for ten successive years 20
come.
And in this calculation no consideration what
soever IS allotted to investment income rrom the
Union Paciic's unpIedged holding OF SSO,OOO,OOO
Southern Pacific common stock Southern Pa
cihc returns are large-large- than utmost en-
thusiasts dared. little while ago. predict And
Southern Pacific is this year 10 go upon a dfvt-
| dend basis Indeed, believe amply war
ranted in forecasting that dividend payments
will begin this spring.
Three per cent dividends upon Southern Pa
cihc mean payment into the Union Pacific treas
ury OF close to 3 per cent upon Union Paciac's
entire common stock.
Pennsylvania's investment holding policy pre-
vailing. Union Pacific stock at present prices Is
a phenomenon in cheapness which cannot long
abide H. ALLAWAY.