Exhibit 12 UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (In Thousands, Except Ratios) (Unaudited) Six Months Ended June 30, 1998 1997 Earnings: Income (Loss) from continuing operations....... $(222,705) $348,386 Undistributed equity earnings.................. (21,933) (15,496) Total................................ (244,638) 332,890 --------- -------- Income Taxes..................................... (159,640) 204,707 Fixed Charges: Interest expense including amortization of debt discount.............................. 337,071 295,279 Portion of rentals representing an interest factor..................................... 87,533 91,329 --------- -------- Total................................ 424,604 386,608 Earnings available for fixed charges............. $ 20,326 $924,205 ========= ======== Total Fixed Charges -- as above.................. $424,604 $386,608 ======== ======== Ratio of earnings to fixed charges (Note 5)...... .05 2.4 ======== ========