Exhibit 12





        UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

        COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
        -------------------------------------------------
                  (In Thousands, Except Ratios)
                           (Unaudited)


                                                         Three Months        
                                                        Ended March 31,      
                                                  -------------------------
                                                     1997            1996   
                                                  -------------------------
                                                            
Earnings:
  Income from continuing operations..............  $127,811       $107,061 

  Undistributed equity earnings..................    (7,854)       (11,894)
                                                   --------       --------
            Total................................   119,957         95,167 
                                                   --------       --------

Income Taxes.....................................    76,856         31,269 
                                                   --------       -------- 
Fixed Charges:
  Interest expense including amortization of
      debt discount..............................   149,862        116,862 

  Portion of rentals representing an interest
      factor.....................................    49,297         28,130 
                                                   --------       -------- 
            Total................................   199,159        144,992 
                                                   --------       --------
Earnings available for fixed charges.............  $395,972       $271,428 
                                                   ========       ======== 

Fixed Charges -- as above........................  $199,159       $144,992 

Interest capitalized.............................        --             -- 
                                                   --------       --------
            Total fixed charges..................  $199,159       $144,992 
                                                   ========       ======== 

Ratio of earnings to fixed charges (Note 5)......       2.0            1.9 
                                                   ========       ========