Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-02-24
BULLS AND BEARS

Special Dispatch to The Star
NEW YORK, February 2i-Figuring on
the way In which the Union Pacific could
make a distribution of surplus profits to
stockholders is one of the most fascinating
occupations of the Wall street traders to-
day. Despite denials from competent quar-
tiers that there is anything in prospect like
the scrip dividend in per cent preferred
stock that has been rumored strongly for
some time, there Is disposition in some
good circles to believe that the accumula-
ton of Union Pacific represents something
more than expectation of a gradual rise
merely on the company's earning power
and asset value
Bankers point out that the company is
drawing more than double its per cent
dividend on the common stock from opera
tons of the Union Pacific alone They
point out its great prospects for steady
gains in this direction and show that the
Union Pacific will be the greatest benefi-
ciary when the Southern Pacific begins to
pay dividends. They point out that the
common stock has great cash equities al
ready, and that these equities. even If not
apportioned warrant appreciation in the
market value OF the stock. Nevertheless.
trading Wall street and a more sabstan-
tiated portion of the stock market com
munity as well is confident that there is
StnSInlnS else Wnlrn must account tQF
the heavy buying of the stock in the last
month and for the lack of any evidence of
inside distribution
Should the Union Pacific distribute to
its stockholders gratis the 100000 900 of
preferred stock authorized last year, in
stead of distributing part of it's enormous
profits in the Northern Securities venture
the common stockholders. in addition to
cash dividend of at least $50 a share.
would receive the equivalent of a sub
Stantial annual increase in the dividend
on their shares. If the preferred stock
holders, for example, should not partici-
pate in such distribution and all the
new preferred stock were issued to the
holders of the common, they would re-
ceiVe practically cash dividend of about
500 a share and also what would amount
to per cent more year on the COM
mon stock
However, If there is Something also
Of this kind the tape in the next few
weeks should tell the story. and Wall
street might as well possess itself in pa
thence. Meanwhile there is not much
doubt in some well-informed quarters
that the Union Pacific interests have
practical control of the Illinois Central
~
Earnings OF the United States Steel Cor
poration for the current quarter are said TO
be ahead of those for the corresponding
portion of the December quarter, and conf
dent statements are made that the not for
the three months ending March 81 will be
fully $36 100000, or in excess of the net for
the three months previous. In that case
great record for the quarter Will be cstab-
lished. The best previous figures for the
first quarter Of the year were made in 1902,
when $780, ,457 was shown.
= x
st. Louis stock exchange seats are going
up, too, $Sc00 having just been paid for a
membership, a record price by $500 Mean
while the price of seats on the New York
stock exchange has gone down several
thousand dollars from the top. If the stock
transfer tax is not the cause of the appre-
citation of value of memberships on
changes in other cities, Wall street houses
would like TO know what the cause Is
There has certainly been an increasing pub
lie speculation in out-of-town centers in the
last year, speculation not hampered by
having to pay s. d hundred shares on every
sale IN addition 10 commissions and interest
charges.