Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-17
WALL STREET FURRY
TWO PACIFIC DIVIDENDS START
I'D NOTABLE RISE

NEW YORK, August 17.-The executive
committees Of the Union Pacific Railroad
Company and the Southern Pacific Com
pany announced today that following divi-
dends have been declared:
A semi-annual dividend Of per cent on
the preferred and semi-annual dividend OF
per cent on the common stock OF the
Union Pacific. and q semi-annual DIVIDEND
OF "a per cent on the common stock OF the
Southern Pacific Company.
The per cent dividend on the common
stock of Union Pacific compares with
previous dividend Of per cent on that
stock. The dividend on Southern Pacific
common stock Is the first ever declared on
that stock. The official announcement OF
the dividend says:
ut is understood that Of the dividend Of
per cent on the common stock of the
Union Pacific, per cent IL charged to sur
plus earnings Of the railroad and per cent
to income from Investments.
Union Pacific and Southern Pacific stocks
made paroxysmal jump in the stock mar
ket even before the official announcement
OF the dividend declarations had been re-
ceiyed through the usual news channels
Union Pacific was up 8M to lin In the
course of the first half hour. and Southern
Paciffcs rise to 50 was 65s over last nights
close. The violence Of this advance and the
evidence Of alarm among the bears In these
stocks caused some apprehension of fnan-
cial damage to the shorts. The course OF
prices In the general list was feverish and
relieved to some extent when Union Pacific
and Southern Pacific fell back under realtz-
ing, Union Pacific reaching 1854 and South
ern Pacific ssh. The rise in prices was re-
sumed when evidence Of a demand for
Pennsylvania developed. and the strength OF
the market again became general.
A Scene Of Excitement.
change following the announcement of the
first dividend for Southern Pacific common
and an increase Of per cent in Union Pa
ciac common stock had hardly been equaled
since the memorable struggle for control OF
Northern Pacific five years ago.
The two lPacifics became the center OF In
terest. and Immediately upon the announce
ment Of the dividend there was a frantic
rush OF brokers to buy those two stocks.
Many of them held orders for lots of 10000
shares EACH Room traders joined In the
scramble to get the stock before the prices
scared too high. and in the confused strug-
gle which ensued little attention was paid
to prices. and the stocks were taken at
whatever point they were ruling at that mo-
ment At noon the excitement was It
boiling point. with Union Pacific still adj
vancing. and the trading then so heavy that
the ticker was four points behind in report
ing the advances.
The speculative furore caused by the
day progressed, and spread to nearly all
quarters Of the market. Pennsylvania and
New York Central showed closest sympa-
thy with the Union Pacific movement, owing
to the analogous conditions Of those COM
panies in their large holdings Of stock of
controlled companies. 1t was clearly in
dictated that the increase in the Union Pa
cihc dividend was taken from income de-
rived from its controlled stocks. Union
Pacific rose to within a shade Of $50 during
the afternoon. Southern Pacific did not
exceed its early high price. and was held
between 81 and 50, apparently by a process
,,,k,, ,y,cyy1
vania's gain reached points, New York
Central 4, and a long list Of stocks from 1
to points. The dealings for the day rose
above the 2,OO0, 600 share mark.