Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1916-05-16
Union Pacific Wealth


w ming heavy and the cash position Of the ro~i'
A pointed out by Dow Jones CO. - 10
strong that an extra dividend might be deelarea ~
dications now are that no action OF this Hna "ll'
lie taken nj todays meeting. After clearing Of TOT
tlrp complications and settlement Of the pen'lHs
labor controversy the matter may be consumers.
Union pacific will earn about SIS share TOT
it's common stock In the year 20 end June o. oh's
81 Of which Ia being turned over TO StoeAno''e''
In the regular dividend distribution .....
Union Pacific has no need 70 add 10 fleooVV'VoV
profit and loss surplus Of unusual sort, IN mat u
ia a surplus every dollar Of which could reapliy DC
turned into cash and distributed without lnterleFlns
in any way with operation or soundness Of t's
Union Pacific property.
Union Pacific has not sought or acquired repn'
tation as a dlsbprser " extra DIVIDENDS More
over. sane railroad management IN this country Az
this time IL not prone 70 persuade government le'
sons that the lands railroads are burhened WIN too
much favor. The fact Ia that With the ending OF
tho heavy war traffic the roads may find themselves
shortly back on the unpleasant droughy plains they
we're trayarsng before the European outbreak And
neither administrations commissions can commit
the countys roads 10 wars 70 save them from
bankruptcy
Neverthel because OF itk other income
Union Pacific, though earning less than So Tor
stock from railroad operation In poorer years has
been able 10 lay aside all the reserve II needs.
Therefore, the Interstate Commerce commission
would find no text should Union Pacific decide TO
distribute something more than the regular quar-
ttry 81 share In view Of large earnings, due 70
The war with other prominent railway officials
Judge Lovett has given plentiful backing FOR Presi-
dent Wilson'S call for better treatment OF the
United states rails, by decision over the last several
yoars, that not dollar could be Wisely Invested IN
new railway development Of this country until there
is some assurance OF treatment fair enough 20 en-
able the earning Of fair return. II IL this wall Of
unfaYorable conditions shutting OF new Investment,
IN fact which makes II more likely that earnings
due 10 extraordinary conditions will be given 20
stockholders instead OF put into extension Of the
system.
Moreover, Union Pacific need worry less over ok
panslon Of Us lines than almost any other road in
Tue land, outside of its rich Kansas field Union
Pacific IL bridge connecting The Or yastest
traffic N the east ana the west. TO load its rails
II does not have 10 do one-tentt Of the soliciting Of
other roads, Hartman picked the national high
way. Ills successor management may say Without
doubt that their line viii receive large share Of
the lands traffic, whether they build more feed
Ing lines or not More than that the double track
Ing was done before dictated by circumstances.
Union Pacific Is prepared TO handle four or
five times the present volume Of business over its
double-track line
Why Union Pacific thinks Il wiser keep on
hand any large part OF It's $1,000 00O surplus u
not obvious, save for fact: the Central Pacific
speaks ts Judgment In the government suit against
southern Pacific, Thon Union Pacific. without IN.
suing bond could, IL IL desired buy itg steel ave-
nue. right through TO the Pacific, when that pos
sibity In out OF the way II Ia decidedly probable
that Union Pacific will cease be the banker and
for the sake of forcing from The land fair treat
ment Of the vital business OF transportation viii
divorce itself Of all but it's railroad property II
Central Pacific Is not bought and better railroad
conditions are begoten than exist today 10 encourage
additional outlay, II Will probably mean another
substantial distribution shareholders 10 clean the
Union Pacific treasury OF all but its railroad prop
erty and assets for actual operation.
Aside from some t90,000,O00 cash working capt
tai in sight BY June 80, Union Pacific. In addition
to t7000O000 par value of stock In other railroads,
has about g2b,0OOOO0 invested in equipment trusts
and notes OF other companies aud some Sg5 900 900
In other companies bonds, all commanding a fairly
ready market Union Paeifics other income from
these investments In outside companies In the year
ending June 30. 1918, was Si3aO3tsi Union Pa
ciflcs fixed charges its funded debt the same
year were siS,s0a92G. Therefore, Union Pacific can
pay Is fixed charges with It's Other income" and
have It's net railroad earnings free to give TO stock
holders.
The only bonds of the system maturing in the
next ten years are 1149Sl.ooO oregon short Line 6s
due February /. 1929.
Union Pacific already has $40 ali steel passen-
gcr-traln cars OF a total OF ig2l and Of It's
il222 freishttrain 1857 all steel and gs $50
steel underframe
incidentally, Union Pacific owns coal lands in
wyoming which are Of great value 10 a big railroad
OF Its f60S miles Of main line SO "a is laid with
ninety-pound rail and cas- with eghty-pound rail
Because II IL IN such location and such condition and
state OF advance preparation Union Pacific has for
years been operated with expenditure of smaller
percentage OF gross earnings than any Of the other
western trunk lines Location Is involved because
TO THIS Is due partly the company's ability 10 find
good load Tor It's trains easthound and westhound
reducing empty car mileage
bnt these are hair dozen Of hundred sub.
saiarN gnts AZ one 90 the country's greatest rail-
road systems, which ranks with the leaders in finnn
elai strength and ability OF railroad MANAGEMENT
Whether such road, with an annual inrnr,a ,.,i
ahefe us distribution 20 stockholders and a bank
account putting lts stocks into the class Of seen,l
YES should not attract Investment ON les. han ii
~ Yield when other stocks Of lesser n,ieB do "A =
question The market seems to he eantau,pt.ttpg Gt
nov. especially tn view Of the wears his rsrntfg.