Capital Stock and Funded 31 Dec. 1917 the capital stock and funded debt were as follows: Capital Stock: Southern Pacific Company $272,823,405 Proprietary Companies... 349,082,400 $Funded Debt: 621,905,805 Southern Pacific Company $206,657,610 Proprietary Companies... 456.471,651 $663,129,261Of the proprietary companies' issues the South ern Pacific Company owns direct or through subsidiaries $349,000,700 of capital stocks and $97,689,590 of funded debt. In addition to these holdings $11,471,000 of proprietary companies' bonds-Are held in sinking funds.
18 ferry-boats and car transfers, 10 tugs, 63 barges and 19 other vessels, the whole form ing a transcontinental system extending from New York City, via New Orleans and Gal veston to San Francisco, Cal., and Portland, Ore., with a line extending from Ogden, Utah, to San Francisco, Cal., $983,482,27520; (2) cash and interest-bearing securities in sinking funds for the redemption of outstanding funded debt, $13,711,547.27; (3) investments in miscellaneous physical property consisting principally of (a) the California Fuel-Oil Department of South ern Pacific Company with an annual produc tion of about 9,500,000 barrels of oil and an nual gross earnings of approximately $17,000, 000, and (b) terminal and other real estate ac quired in anticipation of future use, $30,778, 341.24; (4) investments in affiliated companies, $523,560,538.04; (5) other investments, princi pally securities in outside companies, $24,730, 955.60; (6) current, deferred and unadjusted assets consisting of : which exceeds all debts and obligations, in cluding the outstanding capital stock, by an amount of $302,810,421.72, of which $51,874, 598.08 represents reserves for accrued deprecia tion and $250,935,823.64 represents an invested surplus which is equivalent to nearly 92 per cent of the outstanding capital stock. In ad dition the companies own 10,978,818 acres of unsold subsidy lands, allocated thus: (a) Central Pacific Railway Company, 7,076,215 acres; (b) Houston and Texas Central Rail road Company, 18,688 acres; (c) Southern Pa cific Land Company, 3,883,915 acres; total, 10,978,818 acres; and have a claim against the United States for the value of 2,353,446 acres of unsold lands of the Oregon and California Railroad land grant taken over by the govern ment under Act of Congress passed 9 June 1916.
Union Pacific and Southern Pacific Un Following the death of the late C. P. Huntington the Union Pacific Railroad Com pany acquired a large block of Southern Pa cific Company stock and this was augmented by later purchases until on 30 June 1912 the Union Pacific owned $126,650,000 out of a total of $272,672,406 of Southern Pacific Com pany stock. Suit was brought by the United States on the ground that the ownership of such stock by the Union Pacific Railroad Com pany was in violation of the Sherman Law and on 2 Dec. 1912 the United States Supreme Court held that the ownership of such stock by the Union Pacific Railroad Company was unlawful and ordered the sale of such stock.
The Southern Pacific Company was one of the pioneers in the use of all-steel equipment, the first all-steel passenger car used on its lines having been placed in service in July 1906. Since that time it has constantly been adding to its steel equipment and for several years has followed the practice of pur chasing only all-steel cars for passenger service and either all-steel or steel underframe cars for freight service. Of the 2,405 passenger train cars in service at 31 Dec. 1917, 1,096, or 46 per cent, were all steel, and of the 51,187 freight-train cars in service at the same date 37,515, or 76 per cent, were either all steel or steel underframe.
To secure and maintain the highest stand ard of efficiency and safety of operation the Southern Pacific Company has for many years expended large sums in the substitution of steel cars for wooden cars; in the application of air-brakes, automatic couplers and other safety devices; in the elimination or adequate protection of grade crossings; and in the in stallation of automatic electric-block signals. As a result of such expenditures for saferjr devices, and of the unremitting efforts of the company's officers to maintain safe-working methods, the company transported 422,000,000 passengers in the 10 years ending 31 Dec. 1917 with but one fatality in a train accident.