New-York tribune., 1901-04-25
MORE RUMORS ABOUT U. P.
REPORTED COMING COMBINATION OF
VANDERBILT SYSTEM EAST OF CHI
CAGO WITH IT AND CHICAGO
AND NORTHWESTERN

The sensational rise of Union Pacific shares
yesterday was accompanied by revival in many
quarters OF the rumor that a combination OF the
Nanderbllt system east of Chicago with the Chl-
cago and Northwestern and the Union Pacihc
systems is now under serious consideration by
the Vanderbilt interests. Union Pacific COM
mon opened yesterday at 1895, advanced gradu-
ally to 1865 before 2 O'Clock. closing at 1O7A'
only quarter of point below the highest quo
tation of the day-a net gain of S5s points All
the same time the preferred had gained AS and
the convertible per cent bonds had advanced
more than points The transactions were on
an enormous scale more than ego 600 shares or
the common and about 10000 shares of the pre-
ferred changing hands in five hours. This even
surpasses the record made several years ago at
the time of the famous Reading deal. when over
one million shares dropped on the market
for the stock of that road was in $50 shares.
A week ago Union Pacific common sold at
about 93 1t reached par for the first time last
Friday, under the stimulation of heavy pur-
chases, which in less than three days rose in
volume from 10000 to more than 100000 AT
the beginning of the present week the stock
advanced another 2A points. then declined l1e.
Yesterday it flew up suddenly from 1OlA to
1074 supported by the tremendous pressure OF
transactions greater in volume by 100000
than those of Tuesday.
RAN UP FIVE POINTS.
Chicago and Northwestern stock speedily
caught the spirit of the market, and ran up
points with rapidity. Coincident with these ad-
varces, the report gained headway that Chicago
and Northwestern interests (or more specifically.
New-York Central interests. which control that
system) were buying Union Pacific stocks for
the purpose of obtaining control of that road
No corroboration of the rumor could be OBJ
tain ined In
ators clung TO their belief that w. K. Wander
bits ambition-to control his own transconti-
mental system-was in a fair way of being
realized
Soon after the brokers went to their homes.
one of the principal interests in the Union Pa
cific company, when asked to the accuracy of
the story that the Chicago and Northwestern
would lease the Union Pacific 6 per cent
guarantee, intmated that the rumor was true
in its essential particulars. Another interest
close to the Union Pacific director accounted for
the advance in the common stock by the fact
that outside buyers had suddenly come to their
senses; that they for the first time appreciated
the sterling merit and cheapness of the stock.
a security which all along had sold from GO TO
100 points below the quotations OF other stand
ard railroads of the country. When asked why
the buying public should have arrived at this
decision abruptly. the reply that Wall
Street was at best one huge Interrogation point.
large number of prominent officers of West
ern railroads were In town yesterday, ostensibly
TO attend the spring meeting OF the American
Railway Association. It is reasonable sup
pose that Marvin Hughitt. of Chicago, president
of the Chicago and Northwestern: Horace G.
Burt. of Omaha. president OF the Union Pacific.
and w. II. Newman OF Cleveland. president of
the Lake Shore and Michigan Southern Rail-
80
time with S. r. Galloway. president of the
New-York Central Railroad, with this important
theme as subject of discussion. Mr.. Burt left
here suddenly for the West late in the afternoon.