Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-05-31
BULLS AND BEARS

NEW YORK. May Silt seems to be
taken generally for granted and 1t Is as
serted in some usually well-informed quar-
tiers. that the Union Pacific common divi-
dend will to certainty be increased this
summer. One of the stanch opponents of
this belief says: Nothing makes an in
creased dividend so inevitable almost as the
peace arrangement that has been effected
with regard to the northwest That renders
1t unnecessary for the Union Pacific to pur
sue longer course of ultra conservatism
in regard to dividends so that 1t could be
prepared for contingencies. or. in other
words, provide the sinews of financial war"
X
There seems to be an idea here and there
in Wall street that the Union Pacific d.
rectors will declare ~ per cent annual
dividend this summer, placing the common
stock on per cent basis, and an extra
dividend of from X or 1 per cent to liz per
cent, thus implying that in prosperous years
the board will be disposed to Increase the
returns to stockholders above the regular
distribution of profits. 1t would seem that
Union Pacific. earning. say. - per cent
a year, ana having valuable equities through
the company's investments. was certainly
nearer an increased disbursement than be-
fore the process of dissipating the war
cloud in the northwest began.
III much that one hears these da u Is true
II Is said Hartman has decided to take life
less strenuousy in the future. and this
might mean happier days for the minority
stockholders In the enterprises that he has
dominated. Says a cautious broker.
On stock market conditions and known
Facts shout the properties in question /
mouio gay mat there is a greater probable
HidfEn OF profit combined with a greater
apparent margin of safety in buying Cop
Per- Reading and B. r. T. at these prices
In tnan IN any other purchases which might
De ihdicated. Reducing the probable mar
gin or profit and considering chiefly the
seeming margin of safety l would saw that
southern Pacific, Erie and the steels should
be among the leaders of such a list
ne stfe!'gth Of The Georgia Central third
Incomes, lately, following the advance in
me second incomes to new high prices
seems 70 be based on the indications af-
forded by the company's earnings to date
that there will be a balance at the end Of
the fiscal year sufficient to paw the fulJ :
per cent on each class of income bonds.
* \
sHreWd commentator on the stock mar
ket says that it looks as though it would
ne hiuen easier to get prices up than down
from their present range.
X
The circular issued by President Cole of
the National Lead Company to stockhold-
erS informing them that the directors have
approved a plan to increase the c1pitaI
STOCK from $40. G00.WD to s5eW}0 OnO. the in
crease consisting of $1aGD.Go, :; pre-
ferred stock and s1opko GEO common etpoI
makes no mention of the sreciic n,,rnose
Tor the capital increase, but it is sIlnnosed
that this IS preliminary step in the n,er
ger OF the United Lead Company with the
National Lead Company "'rte result of
the past experience of tie conDanI has
Geen to convince your board of directors
s e me requirement of additional manu-
featuring properties by the company and
the consequent increased tonnage of jts
business would result in a larger narcant
age of net profits earned
FOR this reason your directors, have da
cided that 1t is advisable to enlarge the
business OF the company, and to that end
TO purchase additional properties from time
TO time as such purchases commend them
selves to the judgment of the board and
10 increase the working capital of the COM
pany correspond.ngly." President Cole adds
that IL the stockholders approve the plau
to increase the stock TIE newly authorized
capital Will not be issued a once and that
none OF II will be issued at any time ex-
cept for the purchase of additional proper-
ties or to obtain new capital
by ruling of the governing committee
or the stock exchange the customers and
not the brokers, will pay the stamp tax of
81 on every 100 shares of stocks sold whose
imposition begins on Friday. The commit
Tee has ruled that any member of the ex-
change who. assumes or bears for his own
account, or relieves his principal from any
part of the stamp tax is guilty of a viola
ton of the section of the constitution re-
latlng to commissions. Provision has ap-
parently been made by the stock exchange
authorities for contesting the new law. for
Secretary Ely has sent out notices to mem
bers that all who desire to protest against
the tax may obtain blank forms at his
office, to be addressed to the state con-
troller and sent to the Bank of Manhattan
Company.