https://newsmakingnews.com

UNION PACIFIC CAPITAL TRUST

Union Pacific Capital Trust is a statutory business trust that was formed under Delaware law on March 17, 1998. The Trust's original declaration of trust was amended and restated in its entirety by the Company, as sponsor of the Trust, and the trustees of the Issuer (the "Issuer Trustees") (as so amended and restated, the "Declaration"), on the Original Offering Date.

Pursuant to the Declaration, there are initially five Issuer Trustees. Three of the Issuer Trustees (the "Administrative Trustees") are individuals who are employees or officers of or who are affiliated with the Company. The fourth trustee is a financial institution that is unaffiliated with the Company (the "Property Trustee"). The fifth trustee is an entity which maintains its principal place of business in the State of Delaware (the "Delaware Trustee").

Initially, The Bank of New York, a New York banking corporation, acts as Property Trustee and its affiliate, The Bank of New York (Delaware), a Delaware banking corporation, acts as Delaware Trustee until, in each case, removed or replaced by the holder of the Common Securities. The Bank of New York also acts as indenture trustee under the Guarantee (the "Guarantee Trustee") and under the Indenture (the "Debenture Trustee").

SELLING HOLDERS  

The Convertible Preferred Securities were originally issued by the Trust and sold by Credit Suisse First Boston Corporation, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Smith Barney Inc. and Schroder & Co. Inc. (the "Initial Purchasers") in a transaction exempt from the registration requirements of the Securities Act, to persons reasonably believed by such Initial Purchasers to be "qualified institutional buyers" (as defined in Rule 144A under the Securities Act), to a limited number of institutional "accredited investors" (as defined in Rule 501(a) (1), (2), (3) or (7) under the Securities Act) and outside the United States to non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act. The Selling Holders may from time to time offer and sell pursuant to this Prospectus any or all of the Convertible Preferred Securities, any Convertible Junior Subordinated Debentures and Company Common Stock issued upon conversion of the Convertible Preferred Securities.

The following table sets forth information with respect to the Selling Holders of the Convertible Preferred Securities and the respective number of Convertible Preferred Securities beneficially owned by each Selling Holder that may be offered pursuant to this Prospectus.

Credit Suisse First Boston Corporation..................................... 2,822,418
Fidelity Securities Fund: Fidelity Growth & Income Portfolio(1)..................................................................................... 1,377,000
Argent Classic Convertible Arbitrage Fund (Bermuda) L.P..... 1,335,000
Hartford Capital Appreciation Fund, Inc.(2)................................ 1,230,000
Lipper Convertibles, L.P............................................................... 1,069,700
The Income Fund of America, Inc.................................................... 976,200
Fidelity Devonshire Trust: Fidelity Equity-Income Fund(1)........... 817,600
J.P. Morgan & Co. Incorporated...................................................... 752,133
Equity Portfolio................................................................................... 700,000
Equity Income Portfolio...................................................................... 541,000
Aim Charter Fund............................................................................... 500,000
Premium Total Return Portfolio......................................................... 472,000
Alliance Growth and Income Fund, Inc............................................. 444,000
Argent Classic Convertible Arbitrage Fund L.P.............................. 390,000
Variable Insurance Products Fund: Equity-Income Portfolio(1)........................................................................................... 384,500
Oppenheimer Main Street Funds Inc. for the Oppenheimer
Main Street Income & Growth Fund................................................... 350,300
Commerzbank AG............................................................................... 350,000
Salomon Brothers Fund(3).................................................................. 350,000
The TCW Group, Inc............................................................................. 346,800
SBC Warburg Dillon Read Inc............................................................. 343,500
The Northwestern Mutual Life Insurance Company(4).......................340,000
General Motors Investment Management Corp.(3)........................... 300,000
Paloma Securities LLC........................................................................ 300,000
The Cincinnati Insurance Company..................................................... 300,000
Allstate Life Insurance Company.......................................................... 286,500
Fidelity Capital Trust: Fidelity Value Fund(1)...................................... 268,000
Fundamental Investors, Inc.................................................................... 260,000
Oppenheimer Bond Fund Series -- Oppenheimer
Convertible Securities Fund.................................................................. 250,000
Hartford Capital Appreciation Fund(2)................................................. 246,000
Prudential Equity Income Fund.............................................................. 243,900
Prudential Series Fund, Inc. -- Equity Income Portfolio....................... 243,900
Grantham, Mayo, Van Otterloo & Co., LLC.......................................... 240,000
Highbridge International, LLC.......................................................... ..... 230,000
MainStay Convertible Fund.................................................................... 230,000
Chilton International (BVI) Ltd................................................................. 214,266
The Hudson River Trust -- Alliance Growth and Income Portfolio..................................................................................................... 206,000
Transamerica Life Insurance & Annuity Co........................................... 200,000
Fidelity Puritan Trust: Fidelity Balanced Fund(1).................................. 200,000
Fidelity Puritan Trust: Fidelity Puritan Fund(1)...................................... 190,600
Putnam Convertible Income-Growth Trust............................................. 186,373
Chilton Investment Partners, L.P............................................................. 183,869
T. Rowe Price Associates, Inc................................................................ 178,100
Allstate Insurance Company.................................................................... 176,000
Vanguard Equity Income Fund................................................................ 168,300
Fiduciary Trust Company International................................................... 151,000
Chase Vista Growth & Income Fund...................................................... 150,000
GLG Market Neutral Fund........................................................................ 150,000
Fidelity Financial Trust: Fidelity Equity-Income II Fund(1)..................... 139,400 Oppenheimer Equity Income Fund.......................................................... 131,400
BT Holdings (New York ) Inc..................................................................... 130,500
Davis New York Venture Fund, Inc.......................................................... 125,000
Salomon Brothers Investors Fund(3)....................................................... 125,000
MFS Series Trust V -- MFS Total Return Fund...................................... 117,500
Bond Fund of America, Inc....................................................................... 111,100
Fidelity Management Trust Company on behalf of accounts
managed by it(5)........................................................................................ 111,000
Allmerica Select Growth & Income Fund................................................. 105,200
Paloma Strategic Fund, L.P..................................................................... 100,000
President & Fellows of Harvard College................................................. 100,000
The Cincinnati Life Insurance Company.................................................. 100,000
Baker, Fentress & Company...................................................................... 93,100
JP Morgan Securities Inc............................................................................ 92,133
MainStay Value Fund.................................................................................. 90,000
Pacific Horizon Capital Income Fund........................................................ 90,000
Teachers Insurance and Annuity Association of America....................... 90,000
Oppenheimer Total Return Fund, Inc......................................................... 87,600
Shriners Hospitals For Children................................................................. 87,000
The Chase Manhattan Bank NA Trustee for IBM Retirement
Plan dated 12/18/45.................................................................................... 85,800
Aim V.I. Growth & Income Fund................................................................. 80,000
Excelsior Value & Restructuring Fund....................................................... 80,000
Chrysler Insurance Company...................................................................... 75,000
Continental Casualty Company.................................................................. 71,000
Evergreen Income & Growth Fund............................................................. 70,000
Equity Income Fund..................................................................................... 67,200
The EB Convertible Securities Fund......................................................... 66,900
Bear, Stearns & Co. Inc.............................................................................. 61,000
American Home Assurance Company..................................................... 60,000
American Investors Life Insurance Company, Inc.(3).............................. 60,000
AAM/Zazove Institutional Income Fund, L.P............................................. 58,200
Guardian Life Insurance Company of America........................................ 57,000
MFS Series Trust I -- MFS Managed Sectors Fund................................ 56,400
Bank One Trust Company, N.A.................................................................. 54,600
The Charitable Securities Fund................................................................. 53,506
Personal Trust Income Equity Fund........................................................... 53,000
United National Insurance Company......................................................... 52,000
Bankers Trust Trustee for Chrysler Corporation Emp.
 #1 Pension Plan dated 4/1/89................................................................... 50,300
CIBC Oppenheimer Corp............................................................................ 50,000
Employers Reinsurance Corp. (3).............................................................. 50,000
GLG Global Convertible Fund..................................................................... 50,000
Michigan Mutual Insurance Company......................................................... 50,000
Stagecoach Diversified Equity Income Fund............................................ 47,700
MFS/Sunlife Series Trust -- Managed Sector Series............................... 45,700
Employers' Reinsurance Corporation........................................................ 43,745
The Common Fund....................................................................................... 42,600
Lehman Brothers, Inc.................................................................................... 40,700
IDS Bond Fund, Inc....................................................................................... 40,000
The Victory Convertible Securities Fund.................................................... 40,000
Motors Insurance Corp.(3)............................................................................ 40,000
Presidential Life Insurance Company.......................................................... 40,000
Public Employees Retirement Association of Colorado........................... 40,000
Sound Shore Partners L.P............................................................................ 40,000
Tennessee Consolidated Retirement System............................................ 40,000
Chilton QP Investment Partners, L.P............................................................ 38,040
Davis Growth and Income Fund.................................................................... 38,000
American Balanced Fund, Inc....................................................................... 30,000
Associated Electric & Gas Services Limited.............................................. 30,000
HSB Group, Inc............................................................................................... 30,000
MainStay Institutional Value Equity Fund..................................................... 30,000
Pillar Equity Income Fund.............................................................................. 30,000
Selected American Shares, Inc..................................................................... 30,000
Smith Barney Convertible Fund..................................................................... 30,000
QA Vantage Fund, Ltd.................................................................................... 30,000
Public Service Mutual Insurance Company.................................................. 27,000
State Street Bank Custodian for GE Pension Trust.................................... 26,500
Millers Mutual Fire Insurance Company of Texas........................................ 26,000
The Potlatch-First Trust Co. of St. Paul......................................................... 25,200
United Teacher Associates Insurance Company......................................... 25,000
Life Special Income Fund................................................................................ 24,000
Delaware Group Dividend and Income Fund, Inc......................................... 23,900
Lone Star Life Insurance Company................................................................ 23,700
Chilton Opportunity Trust, L.P.......................................................................... 23,100
Ozark National Life Insurance Company........................................................ 21,200
NAC Reinsurance Company(2)...................................................................... 21,000

July 24, 1998

RICHARD K. DAVIDSON Chairman, President, Chief Executive Officer and Director (Principal Financial Officer) Gary M. Stuart (Principal Accounting Officer) Joseph E. O'Connor, Jr. Philip F. Anschutz Director Robert P. Bauman Director Richard B. Cheney Director E. Virgil Conway Director Spencer F. Eccles Director Elbridge T. Gerry, Jr. Director William H. Gray, III Director Judith Richards Hope Director Richard J. Mahoney Director John R. Meyer Director Thomas A. Reynolds, Jr. Director Richard D. Simmons