Omaha daily bee., 1889-03-29
CALLING FOR DIVIDENDS.

Some OF the eastern stockholders OF
the Union Pacific railroad company are
making an urgent demand for divi-
dends, and the Boston Advertiser Is vig-
orously championing their claims.
That journal insists that there is no
good reason why the company, which
has paid nothing to the stockholders
for nearly five years, should any longer
withhold dividend, since the road has
been for several years and is still earn
ing sufficient to enable the company to
pay dividend. Referring especially
TO the stockholders who have not made
money by speculating in their shares of
the road, but have held their stock un-
disturbed ever since the suspension OF
dividends, the Advertiser says: "They
have been loyal to the company, and
have shown their confidence in the con-
servative management OF Mr.. Adams in
many ways, but In none more strongly
than by continuing to retain their
stock. They have had confidence that
| the road, through its careful and judic-
ious management, could be made pay
| ing property in time, and although the
process has been slower one than had
been anticipated, yet after years OF
| waiting it has become so." In
| view OF this it is submitted
that these stockholders have more
claim to the payment of n
dividend than posterity can have, and
it is suggested that a much longer de-
lay will constrain or force many to
throw over their improbable holdings
| of the stock, land thus lose the natural
fruits OF years of waiting, for the benefit
OF others who came in at the eleventh
hour" The Advertiser does not believe
it to be the design or desire OF the man.
agement OF the road to freeze out old
stockholders, but it says this must be
the effect if dividends are much longer
delayed.
AS to the ability of the road to pay a
dividend the Advertiser asserts that the
Union Pacific system earned in 1885 and
1886 surplus above all liabilities equal
to four per cent or over on the COM
pany's stock, in 1887 more than five per
cent, and last year surplus equal
to more than four per cent on the
company's stock, besides adding in
these years about two million dollars to
the sinking funds and not including the
net income OF the land department,
! aggregating for these years in the
neighborhood of ten million dollars.
1t is further stated that in the three
and one-half years, from June 80, 1884,
to December 81, 1887, the company's net
indebtedness had decreased over eight
million dollars and its mileage had in
creased three hundred and fifty
one miles, besides an in
crease in the assets of its
land departments. To this result the
position taken by the Advertiser has
been heartily approved in communica-
tions from Union Pacific stockholders
one of whom says that many of them
cannot hold their stock any longer.
The results of this internal pressure
upon the Union Pacific management
which seems likely to be maintained with
increasing earnestness and vigor will
be watched with good deal OF interest
While the company was endeavoring tt
induce congress to extend the time
for the payment of its obligations to the
government, and there seemed to be {
promise of success, it was not very
difficult matter to satisfy the stockhold
ers OF the inexpediency of paying divi
dends, but the failure to get the sought
for extension, with less probability thar
ever before of its ever being obtained
has naturally created an impatient de
sire on the part of the stockholders tt
realize something on their stock. Al
one of them writes: "t ignore the ques
. | tion OF settlement with the govern
mont. If an adjustment cannot be made
before the debt become due
the government alone will be respon
sible. Let the direction now man
age the road without regard T.
the possible action of congress-, and the.
will be backed up as in the past by. thei
loyal stockholders" Meantime, pend
ing the decision of the direction on this
question of dividend, it might be vel
for the longconiding and loyal
stockholders to investigate the polio,
and methods under which the road is a
present being operated. The resul
might throw good deal OF light OF
their chance of getting dividends.
may be that the special senate commit
: tee on Pacific railroad, which is soon t.
look into the affairs OF the Union Pacific
may be able to learn something of in
terest to the stockholders of that cor
poration.