Los Angeles herald., 1905-04-06
BY Associated Press.

NEW YORK, April 5.-The intention
to increase the preferred stock issue of
the Union Pacific by $100, 900 900 was
not known to the Wall street public
until this morning and was a general
surprise. This incident forms the gen.
eral point of interest in the days stock
market.
Union Pacific has been the subject
Of gossip and surmise for many
months during the course of its re-
markable rise, but none of the numer-
GUS conjectures regarding it pointed
to the measure announced this morn
ing. This fact in itself aroused doubt
that a large part of the reports which
have been circulated regarding this
stock were i'll Informed.
The effect on the common stock was
unfavorable, as was not unnatural.
in view Of the prior privilege of the
preferred stock now to be doubled in
amount to dividends to the extent of
per cent. The common stock was
offered heavily both for domestic and
foreign accounts. 1t was vigorously
supported, however, all day.
Brokers before the opening were
making offers to take all the stock that
any one would sell and the same
brokers were diligent buyers up to the
level of last night. The support was
then relaxed again, but renewed at any
periods of acute weakness.
Officials of the company decline to
add anything to the official circular as
to the specific purpose for which the
proceeds of the stock were to be used
or as to the proposed time for issu-
ing it.
Assertions were freely made, how
ever among the spectators in the
stock market that the project had to
do with the proposed combination of
Uaion Pacific with New York Central
and Chicago & Northwestern.
1t was pointed out that President
Hartman in maintaining the wisdom
of seeking financial capital require
hents through the issue of stock
: rather than through the creation of in
terest bearing obligations had inter
jected in to the official circular the
remark, Especially such as arise in
connection with the acquisition of
stocks of other companies"
This was adduced to indicate that n
merger project was in view, but Wall
street had formed the opinion that the
supposed merger was to be accom-
plished by the exchange of bonds of a
holding company for existing securi-
ties. which would not involve great
outlay OF cash.
The prospect of a $1OOOOO,OOO block of
new stock, therefore, came as a shock
to sentiment and emphasized the effect
of the huge volume of issues which
is to be added to constantly from many
sources.
The determined support of Union
Pacific was supplemented by notable
upward movements in number of
special stocks. so that the depressing
effect of the Union Pacific announce
ment was modified to a considerable
extent.
The railroad list, the southern group
and the Canadian Pacific group We're
very strong. The only news to account
for the movement was the suggestion
based on earnings and reports of pos
sible dividend increases.
American Smelling headed another
strong group. including the Lead
stocks and some others in affiliated
metal trades.
The United States Steel stocks were
sluggish most of the day, but they
moved up late to higher prices than
were touched yesterday and helped to
sustain the general list by sympathy.
A miscellaneous list of Industrial
stocks showed considerable strength.
The railroad list as whole, however,
was held back.
Sterling exchange was strong again,
in spite of the great ease of money
In foreign centers. This was attributed
to the selling of stocks here for foreign
account.
In some of the very active stocks
the net changes for the day proved to
be small and the market closed irreg-
ular. ~A
value, $4,320,0O0.
United States bonds were all un-
changed on call.