New-York tribune., 1901-06-14
RUMORS ABOUT ST. PAUL.
LARGE HOLDINGS OF THE STOCK REPORTED
TO HAVE BEEN TURNED OVER TO
UNION PACIFIC INTERESTS.

Union Pacific and ST Paul advanced sharply yes
terday afternoon, the former making net gain OF
SIS points and the latter points. on report that
the Union Pacific had acquired important in
terest in the stock Of the Chicago, Milwaukee and
st Paul. Two OF the original inside interests in
the ST. Paul. il said, who had been represent
ed in the board of directors for more than thirty
years had parted with their holdings, aggregatins
S25,ds00eO par value. these holdings now being vest
ed in two unknown names; and it added that
the stock had been turned to Union Pacific
interests. who were to exchange them into per
cent convertible bonds of that road in October.
At the office of the St. Paul road the statement
was chara ,tcrized altogether improbable. In
terests connected with the Hartman syndicate and
the Union Pacific Railroad Company said that, so
far as they knew. tender of ST. Paul stock had
been made nor did they believe that such tender
contemplated.
One of the original inside interests referred
to. it was promptly assumed by the Street. was
the late George Smith, whose stock Is now held by
his nephew. James Henry Smith. at present In
Europe. The ST. Paul road has outstanding
si7liS6oO common and sn0o3 900 preferred stock. or
total Of more than sSSOcO0S0. Assuming the re-
port of the sale of the ST Paul stock to be true.
the s50C00oo said TO have been transferred repre-
sents less than one-third of the whole capitaliEa-
tion, and. therefore. much less than control III
should be noted. however. that the Rockefeller in
teres in the ST. Paul is large one. and that that
interest is prominently identified with the Union
Pacific. The Northern Pacific and the Great
secure the st. Paul before they sa'ned control OF
the Burlington.
The Union Pacific has already in the chicago and
Alton, which is owned by interests closely asso-
ciated with the Union Pacific, Chicago connec-
ton from Kansas City BY controlling the St
Paul. however, 1t would gain outlet to Chicago
from both of It's eastern termini. Omaha and Kan
City. and would in addition reach Minneapolis
and ST. Paul and also Fargo, on the Northern Pa
cific. Such acquisition would. II IS figured oy
the Street. place the Union Pacific in an exceed
ingIy strong position. in view of the agreement
which has been made by which the Burlington is
not to be operated adversely to the interests of
the Union Pacific, the St Paul or the chicago ana
convertible bonds. however, 100000 has already
been used in paying for the Southern Pacific stock
purchased by the Union Pacific, and II has been
understood all along that the remaining sSeoVS
would he devoted to the acquisition Of the North
Pacific stock recently bought by common re-
port for of the Union Pacific: fact which
made Wall Street doubt the report that s2oo".Vo
par value of St. Paul stock NOW selling AT lIel
had been acquired in the interest OF the Union
Pacific.
There were rumors Yesterday that the Union Pa
cifc dividend to be increased. and that
the dividend would be guaranteed Jointly by the
st. Paul and the Northwestern which would thus
control the Union Pacific.
But Of the reports carried with them the
assertion or the suggestion that the purchase of
St Paul stock by Union Pacific II SUCH purchase
has been effected. meant a renewal OF friction or
fighting in the Western railroad field