New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-19
poad Earned 1914 P. G. on
Common Stock, Against
1887 p. c. in 1912.
s75,OOO,OOO PROFITS
FROM SALE OF STOCK
Great Northern Brought S5S, $685.
677 and Southern Pacific
S16,000,000.

In tho annual report OF the Union Pa
,iec Railroad Company for the year end
"a lime 80 1918. made public yesterday,
robert S. Lovett chairman Of the board
% directors. stated that a profit of sos
s-sF77 was realized on the sale of the
.,ock of the Northern Pacific Railway
Comnanv and the Northern Securities
Cor,nanv. which went to the Unlon-Pa-
,;ac in the form Of a special dividend in
1911.
AR Loyett also explained that there
In no a profit of sl6oCo.O0O from the re
cent sale Of its Southern Pacific stock, or
dsred bv the United States Supreme Court
"a conform with it's dissolution mandate,
making A total profit on the two transac-
lions Of about s75,cO0,O0O.
Because of a depreciation Of about $40
,oooao in the market value Of the Union
pacifc's other investment securities. how
var as shown on the books on June 80
ios, tho directors voted 20 appropriate
,rt of surplus and set up as a reserve
,or dspreciation of securities" the sum
or 100000 If any of these securities
are disposed of at any time at loss, this
,,ss will then be charged against this
reserve account
=, the wear ended June so last the Union
Pacific earned 1914 per cent for its Slo'-
"a; 500 common stock, against 1887 per cent
for the same amount of stock the previous
YEAR. Tie only change in the investment
.cco,nt was the purchase OF $4,000 per
cont general mortgage bonds of the chi
caoo & Alton Railroad Company. Work
ing assets in the form Of cash and demand
and time loans decreased A5 U6'Us4, Que
chiefly 10 the payment Of S2S.74O962 BOND
purchase notes to the Southern Pacipc
aud the expenditure OF S2o,5lO3l6 on prop
erty account
The income account showed gross oper-
ating revenues. amounting to S9lSl0.S0', 10
he the largest i'm the history Of The com
many. The increase over the 1912 fiscal
YEAR was y7,630gO or 81 per cent The
ions Of revenue freight carried increased
Ie per cent while the average freight
revenue a ton mile decreased "a per cent.
The number Of revenue passengers carried
increased 4j per cent, while the average
passenger revenue per passenger mile III
creased o. per cent
GENERATING expenses Of the Union Pacific
last year were ,493, an increase OF
SS4247 making the gain in net operating
income only S.72,553. OF the total in
crease in operating costs $4,000 represents
wages. OF which slSl 900 was due to an H.
crease in the hourly rates Of pay on ac-
count OF scarcity of unskilled labor.
Last wear the company's profit and loss
surplus was sl5l, 1881. compared with
sle4.224S.5 the previous year, the decrease
being due to the setting aside of the $5O'-
OgoOoo depreciation fund mentioned above
and a reserve Of SIG, OBS, l12 for accrued de
preciatiol Of equipment now in use TO ac-
cord with the requirements Of the Inter
state Commerce Commission. Heretofore
the company has charged operating ex-
penses with equipment cost less salvage
as equipment was retired. Hereafter OPP
Grating expenses will be charged each
month with the amount assumed 10 repre-
sent acc~uing depreciation.
After rehearsing the various attempts
made 10 comply with the decision Of the
Supreme Court dissolving the Union
Southern Pacific merger, and the final
plan. Chairman Lovett said:
The underwriting expenses. as wei as
counsel and attorneys fees in the litga-
ton with the government and all other
expenses incident 10 the ownership of the
stock Of the Southern Pacific Company
paid up 10 November 90, 1913 (and which
include all expenditures on that account
except compensation Of the trust company
and the special commissioner appointed
by decree Of June 30, 1913, and some com
patat'vcly small items OF court cost not
Yet ascertained) have been charged, as
paid. against the proceeds Of the sale Of
the Southern Pacific Company stock, and
the preferred and common stocks Of the
Baltimore & Ohio Railroad Company. pur-
chased with Southern Pacific stock from
the Pennsylvania Railroad Company. have
been taken up on the books Of the COM
pany at approximately market value as
Of the date on which the transaction was
contaminated At the date of this report
the Southern Pacific stock account showed
a profit upon the books OF $l6.3l0O 90 49,