The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-08-18

Electrified by the announcement Of
a per cent dividend on Southern Pa
cifie and the raising Of Union Pacific
to 10 per cent basis, Wall street has
plunged into speculative frenzy. Eigh-
zen dollars share had been added
20 the market quotations for Union Pa.
ifc before yesterdays buying wave
.;,bsided, and 603,100 shares changed
lands. The business in all stocks ran
% the total of $4,000 shares, making
ore of the big days Of the exchange.
No dividend announcement ever
created such stir. Stock market re-
suits are due not so much to the in
crease in itself as to the recognition
therein that time for greater returns
upon corporate investment has arrived.
It was an answer to the call for higher
dividends unheeded thru many months
Of prosperity and larger corporate earn
ings.
One of the extraordinary things
in practical finance in America has been
the difficulty, commented upon both
at home and abroad, of increasing ma
terially the return to investors in our
great and prosperous enterprises.
when it is considered that &C.
tivity could scarcely be greater, that
the railroads have made forward strides
and have enormous earnings in pros
poet. that our steel mills are sold ahead
and working under pressure, that gross
earnings in nearly every line show rec
ord figures and that prosperity and
plenty are everywhere in evidence, it
would seem that increased dividend
payments should long since have been
the rule. It is true there are recent in
creases, notably the payment Of divi'
dend on the common stock of the Steel
corporation, but until the Hartman
roads made their. announcement the
more important response was wanting
Ten years ago there were 1878
miles of railroad reporting gross earn
ings. Their total was $45S, 900. To
day, of a total mileage Of 100000, roads
/ operating 1861 miles have reported
1 for the fiscal year ending June 80 an6
/ their grand total reaches $941 100000
A mere glance at the comparative mile
age and the earnings will show tina
while the mileage crept up moderately
/ earnings have bounded forward. Las
4 year mileage of 1S5,912 was covered
4 In reports to this date with earning
i Of $1,000 900, and this years total O
shout 5000 miles less shows $31 ,00000
more earned.
Three main reasons there are VIII.
Y "a
cost of operation, inability to float nel
issues of bonds, and the turning bac.
4 Of earnings into repair or bettermen
expense.
Every period of great prosperit
brings good things to business me1
brings likewise it's influences upon tn
adverse side. If it were possible to
the larger business now evidenced a
an expense proportionately the sam
as in the days Of smaller business som
years back, profits would be increase
materially, but probably every bushes
] man has felt in some degree the Greer
ing up of the percentage of cost Of OF
Grafton. If this is true Of private bus
ness affairs it is true of the great CO
porations ~e
IT, has been impossible Sproftabl
10. float any large bond issues. Las
month about $25,0OO,000 in new bono
I appeared against an average of $95
! 100000 for the month. This. is not a
unhealthy sign; on the contrary,
proves the activity Of the country, an
= evidences the. demand for money.
The result Of this has been show
a1at- 81 sses3 sst5. a Us