Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-01-08
BULLS AND BEARS

Special Dispatch to The Star.
NEW YORK, January S.--A good many
spectators, both in this country and In
Europe. appear to have a notion that OPP
portunities to make enormous fortunes on
the short side OF American stocks will be
offered this year. something like the OPP
portunfues afforded in 1903, for example:
The trouble is that relatively few felt that
way early in 1903 and the fortunes made
were not In proportion to the opportuni-
ties. Possibly the opportunities In 1905
will not be propertioned to the dreams Of
fortune.
According to many sober-minded men In
the financial community. there is more
need Of reform on the banking methods
and laws than In the country's monetary
system, except that is bound up with
the banking system.
As time passes IL will be interesting to
compare the course Of the Union Pacific
railroad with that of the Pennsylvania
The growth of the Union Pacific and the
favor with which its common stock has
come to be regarded are nothing less than
phenomenal. The Pennsylvania has an
unDrOkSn history or SUCCESSFUL
since 1916, and has paid dividends on les
stock in every calendar year since 1850
!, The new Union Pacific was formed IN
1897 to take over the property OF the oid
Union Pacific under the reorganization
plan of 1895. Dividends began on the COM
mon stock in 1900 when 3h per cent was
paid, per cent being paid in the next
year. Last year the rate was advanced
to per cent, and now Wall street Is look
ing for action by the directors this month
that will make it practically II not actually
q / per cent stock.
Pennsylvania was made g. per cent
stock in 1861, but nothing has developed
to indicate that the rate is likely to be
advanced in the next year or So Mean
while it is interesting to note that in point
OF capitalization there is not much differ
ence between the two properties. The
Pennsylvania has 1907, H. $50 OF capital
stock outstanding and enough more au-
thorized to bring the total up to 800. 10000
which will eventually be accomplished by
the exchange Of the convertible bonds now
outstanding The Union Pacific has $780,
100000 of per cent preferred stock ou--
standing and $1OO,OGO,O00 more authorized.
For all practical purposes exchange of the
first lien convertible As has taken place. so
that there is practically $20o,O0O.O0O of COM
mon stock outstanding. The Pennsylvania
has a bonded debt Of about $1S6, 1913, $40, of
which about $40, 523 900 is represented by
conference.-the bonds. Roughly speaking, it
has net bonded debt Of about S66, 600, 600.
emitting the convertibles, and stock
capitalization of $500. 0oo, 600. transferring
the convertible bond debt to stock capt.
talization Figuring in the same way the
Union Pacific has a bonded debt of 5000
GEO and a stock capitalization of $400. 090. 600.
With about 500 miles more railroad than
the Pennsylvania, the Union Pacitic's gross
earnings are about S6ooo0.0eO year. The
Pennsylvania gross is about $4,000 900.
In respect to equities in other roads, the
Union Pacific has assets Of unknown value,
especially in Southern Pacific, Northern Pa
cific and Great Northern. but study of the
Pennsylvania equities in other properties
would yield results not at all disadvantage
Gus TO the older company.
X X
If cotton spinners should decide soon to
take the south's cotton at the prices for
which the planters are holding out, there
would result very free flow to this center
of cash and credits now tied up in the move
ment to hold out cotton. Moreover, exports
of cotton would create foreign exchange
with a rapidity which would avert the dan
ger of q gold export movement, which now
threatens the New Yorw money market at
time when II should be harvesting cash.
x
x y
1t is announced that the Corn Products
Refining Company will be organized under
the laws of New Jersey with capital of
$50, co., eco of preferred stock and $4,000
600 of common stock, the same the
present Corn Products Company. c. H.
Kelsey president of the Corn Products
Company says that e. T. Bedford will
take the presidency OF the new company
and the management of the business. When
the plan of reorganization and expansion
becomes effective, the Corn Products Re
filming Company will own: At least a ma
jority of the capital stock Of the Corn
Products Company; the entire capital stock
of the New York Glucose Company, not al
ready acquired 10y the Corn Products Com
pany. the entire capital stock Of the War
ner Sugar Refining Company; the entire
capital stock OF the st. Louis Syrup and
Preserving Company. and the new COM
pany, with its subsidiary companies will
have a net working capital of approximate
ly 100000
In accordance with the plan announced,
the Title Guarantee and Trust Company
will issue transferable certificates Of de-
posit, enabling stockholders Of the Corn
Products Company to exchange at the rate
of three shares of Corn Products for two
shares of the same class of Corn Prod
ucts Refining Company stock. Stockhold-
ers Of the Corn Products Company have
until 8 o'clock February 1 in which to
deposit their stock.
T,0Nn0N M ARKETpRTGE