New-York tribune., 1906-11-28
RECORD I. 2. EARNINGS
Tremendous Increase in Companys
Assets Sh07cn IN annual Report.

The report Of the Union Pacific Railroad for
tbe wear ended June 80, 1906, which was rnede
rublic yesterday shows gross receipts of S67
2s1. .542 the heaviest in the history OF the COM
rany and an increase of 81, 956, ,593, as conparea
with the preceding year. Operating expenses
Increased SS S490S6S. while net earnings in
creased S3.O66125. General results from the
operation of the property and from income from
investments show trife over II per cent earned
for the common stock after the payment of 4
Ter cent on the preferred. There was a profit
from the Northern Pacific transaction. after de-
Quoting all costs of more than $4,000 600. and
an excess OF current assets over current LA bilt-
ties at the close OF the fiscal year of more than
slooo10oo0 large part OF which was in the
form cf cash and demand loans. BY adding
TIE profits Of the Great Northern and Northern
Pacific stocks sold in the year and other equities
earned the total surplus figures out upward Of
S6 per cent for the common stock
By analyZing this report II Will be found that
the Union Pacific Company holds sufficient col
lateral wealth 10 lquidate its entire funded and
preferred debt leaving its wonderful system and
its tremendous earning power with many mill
ions Of dollars 10 spare as the equity belonging
10 the holders Of the common stock. Probably in
the history Of American railroads there has
never been a report showing such magnificent
results as that presented in the exhibit made
by the great Hartman property
The report however, improperly includes in
income other than from transportation opera
tons the senai-annual dividend of 21a per cent
which was paid last October on the common
stock Of the Southern Pacific Company in which
Union Pacifc's interests amounted to So 250,-
0to but which ought TO figure in the results
Of the current year. a decrease Of 50 29O575
IN Hya1 oi1nr al
version Of S30G05O00 convertible 4 per cent
bonds into an equal amount Of Union Pacific
stock, and from the retirement of the remain
ing Oregon Short Line Railroad per cent and
participating bonds. Payment for dividends on
stocks increased SS44j,3 ,363. The company sold
in The year stock Of the Northern Securities
Company TO The amount Of 81. $50 600: preferred
STOCK OF the Great Northern Railway Company
20 tne amount of S99G0. .0S9, and common stock
OF the Northern Pacific Railway TO the arooi1nt
OF sl4,S50Ob2. The amounts realized from the
sales OF these stocks We're used in the construc
i"n 4h9 ACQUISITION of new lines. in the pur-
o-ase oI equipment and other property and in
an increase in cash assets The stocks and
20 longs e, owned AZ the close Of the year amounted
70 $50, l.Sp6 compared with SI50 oT5 2Oc ~
me same time in the preceding wear
Ihe report specifically differentiates hetvaen
-.eoi4e mn rum transportation operations and in
come from Investments and stress is laid nm
EIe iact mat the directors decided 10 declare
dHldehd OF per cent from income from invest
~ ,,''ts "a audltlon 10 a semi-annual dividend of 3
Ltf cent declared from the operation of the rail-
90! Feihaps the most interesting feature of
the report IS the balance sheet which shows c,,r
rent assets Of S123.O17, $50 the greater nart of
snIc IS IN cash and receiva bles. against cur
~ habiltes Of only S21 4O1 662 consisting
ssriely OF unpaid interest, coupons and dividends
Inc net profits on the Hill stocks sold in the
-.ear amounted to more than $30O00OOO. The
tepoft makes no mention Of the Baltimore e,
Chlo stock purchased from the PENNSYLVANIA
company by Kuhn, Loeb &, Co. supposedly in
ule interests Of Union Pacific
NT. farflman predicts that incomes from IN
1esuhehls IN the current year s-obabiy will IN
crease H4,WoVD Of which s. 10000 will come
rom rom the Southern Pacific. The report is com
pee N al details regarding the operation of tho
properly, and shows that the physical and fnan-
ca ca condition Of the road, its operating eff
dehcy its earning power and its collateral
.eaIlA make q new record in the history OF
AEerican railroads
Detailed earnings follow: