The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-07-24
RAILROAD news.
Fifty Millions to BE Spent by
Wizard Hartman.
Money to BE Used to Strengthen
Grin on Eastern Roads.
COMPLETE IN WEST.
Head of Union Pacific Needs No
More Western Lines.
Other Items of Interest in
Railway Circles.

New York. July 24.-In the opinion
of weI-informed local banking in
tcrests the recent sales of a portion of
the Union Pacific Railroad company's
treasury assets mean that the pro-
ceeds derived therefrom will be used
toward strengthening the Hartman
influences in the east. It is figured
that the Union Pacific must have in
the neighbOrhOOd of $50,000,000 free
cash available at the present time for
reinvestment, if part of it has not al
ready been reinVested.
From the sale of the Union Pa
cff1c's $1O,O0O,0OO Atchison preferred
stock the company received, it is IN
derStOOd, slightly over $10,000,000-
Previous to that the sale of it's $37,-
100000 Southern Pacific convertible
bonds brought in about $3S,000,000,
all of which. however, may not be
considered as unincum bered, but the
transaction probably increased the
Union Pacifc's cash to the extent of,
say, $25, 100000. The Union Pacific,
or, technically speaking, the Oregon
Short Line. purchased the Southern
Pacific convertibles at the price paid
for them by other Southern Pacific
stockholders, so that on the resale
of the bonds the Union Pacific simply
made profit represented by a differ
ence between the purchase price and
what it received for them.
But out of the proceeds of the
Southern Pacific bond issue that COM
pany was able to pay back to the
Union Pacific about $22,OOO.OOO, ad-
vances which have been made to it by
the parent concern. The Union Pa
cific made a profit on the bond
transaction of about 100000, so
that the operations in connection with
the Southern Pacific bond issues must
have increased the Union Pacific S
cash holdings to the extent of ap-
proximately $25,000.000 For the
first fiscal year, ended June 30 last,
the company is understood to have
earned a balance after dividends, of
about $1S,000,00O. These three
items, namely, $1O.0OO,O0O from
Atchison preferred stock sale. $50
100000 from the Southern Pacific
bond sale and S1S.0O0,OOO surplus al
ter dividends for the last fiscal year,
would foot up $53,00O,0O0. This
estimate leaves cut of account any
surplus cash which the company may
have had on hand prior to the con-
cIusion of the transa ctiOnS mentioned.
Those pretty we'll Informed upon
the affairs of the Hartman roads be-
lieve that the policy of the company
will be to divest itself of the stocks
now held by it iE some of the other
western roads, particularly Great
Northern. Northern Pacific and Great
Northern ore certificates, and use the
proceeds for other purposes. 1t is
pointed out that the Hartman sys-
tenn in the west has been pretty Wen
rounded out and there is no further
good reason why the Union Pacific
Should retain its stocks in the Hill
roads. though it is thought likely that
it will continue to hold its invest
ments in st. Paul and Chicago North
western. as well, of course. as in
Southern Pacific.
There is a very strong belief that
a large part of the available cash
assets of the Union Pacific will be de-
voted toward strengthening its foot
hold in the Baltimore and Ohio and
other properties.