New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-12
UNION PAC|F|C'S YEAR
Net Earnings 1873 Per Cent on
Common Stock.

The report showing the income account
Of the Union Pacific Railroad Company
and auxiliaries for the fiscal year ended
June 80. 1912, was issued yesterday.
Added interest was attached to its publ
cation owing to the recent dissolution de-
cree of the Supreme Court ordering that
this property shall no longer exercise con-
troll OF the Southern Pacific. AS the divi-
dends resulting from the company's own
ership Of 1925, $4,000 common stock Of
the Southern Pacific have amounted to APP
proximately s7,6OO,0OO year, It is evil
dent that the future income from owner
ship Of other companies will suffer heavy
curtailment This has already brought up
the question as TO whether Union Pacific
will be able to maintain the 10 per cent
dividend on its own common stock, but
Wall Street statistcians have figured IL out
that the company will be able to pay its
present disbursement on the junior issue
without the aid Of Southern Pacific, unless
operating revenues suffer abnormally.
With an increase Of Al miles in oper-
alton. gross earnings last year amounted
to $S5,977 sos, decrease Of S3,005, 400
compared with 1911. Operating expenses.
including taxes, aggregated s54,75S,195
an increase of sl,4S6,2t4, bringing net
earnings from operations down to $751;
219,413, and making a further decline, in
comparison with the previous years total
Of S4,491,713
Income from sources other than oper-
atoms, including the dividend from the
Southern Pacific stock, amounted TO $50
1887. falling Off Of S4,23S,79S. There
was deducted for fixed and other charges
ste.O75.924. or S1,696.969 more than for
1911, bringing the surplus applicable for
dividends down to S34O39,993. which is
equal to 1873 per cent on the s216.645.000
common stock, compared with 1876 per
cent In 1911. Dividends on the preferred
stock at the rate of 4 per cent amounted
to s3,9s1,744 and on the common at the
10 per cent rate amounted TO $2l ,664.7 1913.
This made the years surplus, after all
charges. equal TO SS,39S,510, as against
s14334A5 at the close Of 1911.
In explanation Of the report Robert 5.
Lovett, chairman OF the executive COM
mittee. said:
The marked decrease IN the years sur
plus resulted from exceptional causes.
There was a decrease in revenue from
shortage Of crops, with the resultant
shrinkage in general traffic, and there
were reductions I'm rates made by com
missions. both state and interstate. There
was an increase in operating expenses
from the causes referred 20 I'm trans
portation operations" a very large IN
crease in taxes 1894. 64l. or 261l per cent?
and an increase I'm interest charges result
Ing from the payment of "A full years
interest and rentals on newly built lines
taken over last year. but on which the
earnings have not az yet been fully de-
veloped.
Lawyers Of the Union Pacific will go 10
Washington next Monday 10 appear in
the Supreme Court for the purpose OF
obtaining Information regarding doubted
points OF the recent decision. Among
these is the question whether the Union
Pacific will be permitted 20 receive divi-
dends on its holdings OF Southern Pacific
stock