The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-03

the anbsiding movement in the speculation
in mining stocks in the curb market, for
it is beyond question that this speculation
and the general mining boom that has 40
companied it have to an extent only lessthan
that OF the speculative purchases OF real
estate during the year served to tie up
money. The annual report OF the Union
Pacific Railroad Company, which has long
been awaited with great anticipation seemed
to be, when it was published last Tuesday,
of little different sort than might have been
deduced from the preliminary figures OF
the report that were given out by the COM
pany's management three months ago
and the chief comment heard concerning
il in Wall Street was that the financial re-
suits that had been attained and were duly
set forth were sufficiently satisfactory
without the necessity Of the strained effort
that was further made to include in the
recorded profits Of the company for the
last fiscal year the dividends on Southern
Pacific stock that were not paid until the
current year. There was a little disap-
pointment, perhaps, hat the annual earn
ings of the Union Pacific applicable to divi-
dends on the common shares were not
more in excess of the 10 per cent. dividend
on the SlOCh HOW ul-lIlDulCN, IA IN NhO
fair calculation appears to be that in the
coming year the Union Pacific will earn
in the neighborhood OF II or IS per cent.
on its common stock, regrets OF this kind
were not very poignant. It deserves to be
said that taking the Union Pacific report
in it's entirety it emphasizes the profits OF
the company received from fortunate in
vestments and from the transaction vlr-
tually of a banking business rather than
those accruing from the operation proper
of railway lines. Thirty -four million dol
lars lent by the company on call, $2l 900 900
in cash on hand, ST. 900 900 Of quick assets
and somewhere between $500 900 900
and $3.50, 900 900 of ~unpledged securi-
ties taken at their market ~valuationl
Possessions such as these alter traditional
ideas of railway company organization,
and suggest that the time cannot he far
distant when the Union Pacific Company
may seek to bring about a separation OF
its railway bushes from hat Of its banking
and investment concerns. One difficulty,
of course, that will have to be surmounted
in such an arrangement will he that Of
taking care" of the Union Pacific Com
pany's present 500 900, 600 preferred stock.
This stock is, it is true, - preferred as
to dividends, but it is sthl capital stock,
having an equal claim with the common
stock upon the assets Of the company; and
the fact that there has been no upward
movement in the price Of the Union Pacific
preferred shares is a rather plain indication
that the creation of such a holding COM
pany, while no doubt inevitable at some
time in the future, is not near at hand.
Grounds. finally, for the general and well
sustained optimism now permeating all
classes OF the community regarding the
future of business and financial conditions
in the country were afforded in hat portion
Of the annual report of the Secretary Of
Agriculture, published during the week,
WHERE reference was made to the value of
farm products for the year 1909. The total
value of these products was placed at
81, 794, 600, 900, much the largest on record, Of
course, in the country's history. The sum
in question is sass 600 900 greater than that
Of last year, $685., OOO. 900 greater than in 1904
and SS77, OOO, 900 over the value of 1903.
Since 1899, when the figures of the last census
were taken, the value of farm products has
increased $2,O77, 900, 600. While the worth
of what comes out of the ground" in the
country in the single item of agricultural
products alone is augmenting in his way,
not to mention the hugely larger value
each year of the country's mineral pro-
duction, a basis is afforded that no one can
dispute for the present rosy views concern
ing our national prosperity.