The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-11-21
HARTMAN WILL
FOLLOW HILLS Plan
Likely to Segregate Railroad
and Investment Features
of Union Pacific.
THIS SEEMS TO BE
SPIRIT OF THE AGE
Changes viii in All Likelihood
Be Made Before
January 1St.


road management is to follow the exam
pie Of the Great Northern railway in
the matter of the segregation Of its
railroad and investment features, plans
having been laid with that end in view.
saws the Commercial of New York In
the case of the Great Northern the ex-
press, mining, elevator and other mis-
cellaDeous extraneous interests are held
entirely separate and distinct from its
transportation interests, and the effect
of this division is said to have proved
beneficial IN many ways.
In the case of the Union Pacific, the
divorce of the investment and financial
features of that property from it's
strictly railroad interests is as yet in
contemplation, the scheme so far being
in what may be called tentative state,
but is thought that the plans now un-
der consideration will be brought to a
conclusion before Jan. / next. Mr.. Har-
riman has been deeply impressed with
the wisdom of the course pursued by
Mr. Hill.
Division of Stock.
1t probably is known that the hold
ing company side of the Union Pacific
represents approximately as much cap
ital wealth as the transportation cor
poration side, The total capitalization
of the Union Pacific railroad is about
in stock and sos, s,759000 in bonds. 1t
is the idea that when the plan contem-
plated is brought to q successful con-
clusion. it Will call for division of the
common stock of the corporation, each
share of common stock to be accompan-
led by certificate representing the in
terest of the holder thereof in the
holding company. The latter may not
be given the name of holding company,
hut ~ yci11 he .Such effect
According TO fair estimate the Un"
ion Pacific railroad now has in It's treas
ury assets which are worth from $780,
0O0,0 to 00,000,000, these assets, as
of tho last showing made, which was
on June so, 1905, consisting mainly of
the following securities;
Par value
Northern Pacific stock .......,S %, ,010,26S
Great Northern ........ 1892, ,90S
Northern Securities stock 12S5OOO0
Northern Securities stubs 5e6.91s
Chicago & Alton stock .-..- 1o3i3.1o0
Southern Pacific common 9o0oo.oo0
Southern Pncitc preferred $4,000, 600
Other stocks ...... 24625, ,016
Total -. .-....- slo3.s3s,2So
This compilation does not include
nearly $4,000 900 of the bonds of 9th
er corporations, nor represent the true
value of the securities in question, The
stock of the Northern Pacific, which
stands in the tabulation at a trife
more than $22000,000, is worth more
than double that amount, while the
Great Northern stock, put at little
less than S17,000,O00, is worth upward
of $55, 100000. The stock and stubs of
the Northern Securities Co, which are
put in at par, have since been converted
into Northern Pacific and Great North
ern stocks at a good appreciation In
value.
Not Fully Representative.
Apart from these, this total of Sl95,-
600 600 does not represent the full ex-
ten of the free assets by any means.
From $35, 900. 900 to $40,000,000 has
been put into the San Pedro extension,
advances for new construction, equip
ment and miscellaneous things, none OF
which has been capitalized, so far as is
known. 1t may be said that in the
valuation given above clear proht OF
about Sl15.000,o00 is represented, TOR
the reason that in addition to the $50.
100000 or so of actual AMI potential
profit from the Hill stocks there IS an
additional profit of, say, $3o,0O0,0o0 IN
Southern Pacific stocks.
The common shares Of the latter did
not cost more than $4,000, and is
worth at least $S0,000,00O at the pres
ent time; the preferred stock shows
an advance of IS per cent since It's pur,
chase In addition to all this, upward
of $l40,000,000 worth of securities OF
auxiliary companies owned by the Un.
ion Pacific are held in the treasury OF
the latter company.