New-York tribune., 1907-12-21
i. P. EARNINGS I'M MENSE |
DEVELOPMENT.
Report Shoes Ability to Pay I7.5
Per Cent on Common Stock.

The wonderful development Of the Union racine
Railroad Company in the last fiscal year and in
the last decade is reflected in the companys annual
report. made public yesterday. financial document
by Ear the most important of those issued In 1907.
It shows a surplus earned available for common
stock dividends of sS4 2o157 equivalent TO 175 per
the outstanding S195,40.S0 OF common
stock capitalization. And this result has been &C
compiished after maintaining the property on a
higher standard than reported for any other I'M
portant railroad system in the country.
In the last ten years the company has earned
S2ss4 Of profits over and above all dividend
disbursements, and at the close of its fiscal year
II shows profit and loss credit of s52S11.S2l the
balance earned since 1897 having been expended for
improvements betterments. railroad securities and
for other purposes. And these earned profits, az
Mr.. Hartman says in his report. exceeding H1s oo.
CO. which either held in hand or have been re-
invested, equal approximately TO $50 share
Union Pacific common stock.
The report shows that in the last few months the
company has sold 17100 shares OF its St. Paul stock.
$500 shares of Northern Pacific. 2,5O0 shares OF
Great Northern and l3 300 shares OF Great Northern
Ore certificates. The latter yielded s7 each. E. H
Hartman answers those of his critics who have
said that his purchases stocks other railroads
have caused the Union Pacific a loss of many mill
ions by saying that the Hill stocks which
were sold under his direction yielded .7@.
and IL they had been held date the shrink
age from that price would have been .56,5N. .5Ss
that the market value of the reinvestments
shows a shrnkage of s23,i49s94, so that the net
gain because Of refnyesments is So ,6Il and he
says further that the Hill stocks yielded 2,7s per
cent on the original investment whereas the rein
vestments yield AS per cent. There is a gain to
the Union Pacific OF s1.sSs42 d year.
Mr Hartman says that there have been sold
1850 50 shares of Great Northern stock at an
average of 1904 Al share 30 3e0s2 shares OF North
ern Pacific average Of sos 76 a share 10000
shares Of Northern Securities at an average OF
sss 80 share, and 1920 shares Of Great Northern
Ore at ST. Il share. He says further that me
total profits the Union Pacific result of the
original Northern Pacific investment were Ses',1os
in cash. plus Hill stocks on hand, worth at cur
rent market prices approximately s2o"""c. max
ing net profits OF about S50oo,0oo The report also
states that 1.S4a9o miles Of the companys system
are now free of mortgage debt and are held as
free asset. AS of December last the Union Pa
cifc held investment stocks in other railroads. OF
a market value that date of s22s4oa7S the
investment return from which is N5,coSH year,
and in addition 10 this has profits on account OF
investment operations amounting to 81, fS-
In addition the foregoing securities many new
securities have been added to the companys treas
ury in the year. the most omportant of which are
s20oo0o per cent first mortgage bonds of the
San Pedro Los Angeles & Salt Lake Railroad
Company, In repayment OF advances made the ia'-
ter road and S2 500 600 capital stock of the same
company, together with various other Stocks anu
bonds Besides the so-called Investment securi-
ties mentioned above at present worth sZZ84 'so.
the Union Pacific holds other securities in other
coupapies mot including. however, any securities
of the Union Pacific system or any OF its pro
nrje,arv conpanies) of s73,2l,oo par value, and
annroxtu,ately half of these consist Of bonds
7, other words the total Of the securities in the
Union Pacific treasury at the present time, eh-
Guiding securities OF the Union Pacific itself and
proprietary companies. have value OF approx
mately $5oo,opVr
In the last ten years the companys gross re-
,a,nt. have increased from S33 2s25 to SS7 4747eS.
and its surplus for dividends has been n1ultlpied
hy four showing an increase OF from s7'i@'''f "
SIS 17s 500 In the same time there has been eA-
nended for change of line. equipment improving
,.d.. etc s1o4 AZ es6 end for terminal properties
snd lines in course of construction $26,2l2s0 he
parding the S75,0DC0o twenty-year per cent con-
er,,h,e gold bonds sold since the close OF the year.
the report says the proceeds have been applea
to the discharge of current liabilities
,'ato,,sd earnings for the last fiscal year COM
nared with the year before fono":
e.o.. .-.n, ses In: sss .ss
Net op sss 1ss s9 pss 7si
Fixed charges s'e"o'-" e'o-' ~ 60 -
eos l.4s4s5e Inc So. 1o5. .o44
Sirldends SaTPen on I.
asss s:ss. s. s:: 'Tass
O. r. r. & y. pf'---
Total dividends s5.71os2o s22 sss Inc ss a eS,
c,rnsns S,s19,osS eeiheso ih0 ''V"''''"
B,S. 1s, On Ss s;s owned
Rent from SS's. etc ~ SO . - Inc All $50
Miscellaneous ss''f"0'
Int. on loans q ope" 22s7sO9 Dec. 2.2s7 500
800 4es. io1 s1a1.l.scs Incs 4.s24,2
r,tv T.. L. ccfn ooo fnc
stock a per cent? f'eie'<io to''' -
s,o sIs SIS sI2 232 $50 Inc. s4l4. .635
Surplus .--~AS'''N
Annr for imp .~o 40, aoo ooo dee 2 2sO sos
and new equip Le'""- ~
go &C. ssa S. os2 go 81 655. .G3s
Surplus -----''-
.c;- -, cent .Does include
-Four PEI p,r,ns 10 81 900 declared since july 1.
diyidenas nont ~ year June 3d. lsa on snafe
so. a,chison Topeka & santa rs me. ,hs sTTa per
cent -, tho conn