The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-08-19
answering THE CRY
FOR BIG Dividends
Wall Street Stimulated by Late
:" Increases Is Hoping for
= More.
Special to The Journal.

Special to The Journal
New York, Aug. 16.-The declara-
tion Of the dividends on Union Pacific
and Southern Pacific and the advances
in stocks and excitement on the ex-
change following, has turned the at
tention Of Wall street towards oonsid-
Grafton of dividend possibilities as of
first Importance in forecasting the fu-
ture of prices. A great deal Is now
heard with respect to the probability of
another "melon' being cut by the
Great Northern Railway company.
From intimations that have been made,
it looks as tho the Northern Pacific
> very substantial bonus. The earnings
that company are far in excess Of
20 dividend that is being paid. 1t is
>aown that for some years the actual
e&rnings Of the St. Paul have been
about three times the rate Of dividend
paid to the stockholders. The company
has not made any extra disbursements
recently to it's stockholders, but it IS
understood has used the surplus fund
coast extension. The Union Pacific was
another large railroad corporation
which, until this week, was paying only
q meaper rate of dividend in proper
ton to the actual earnings. >.
Men Of prominence whose opinions
are worthy of attention say that altho
the movement which is under way for
larger dividends may fail In individual
eases temporasily as n t the case hs1;s0 OF
that The time is not far distant when
the cry of the stockholders for larger
share of the profits of the companies
whose securities thoy hold will be heard
and obeyed.
Experts who are studying the earn
ings Of the large corporations are OF the
opinion that within the next year there
will be general increase in dividends
by companies which have been piling
up earnings, but which have declared
only small proportion Of the profits in
the shape of dividends. These students
of values say that even the high-prlce'
stocks, so-called, are easily worth the
price at which they are selling simply
on the basis of the earnings that have
been reported by the corporations
which these securities represent. These
men assert further that undoubtedly
practically all Of the railroads and in
*dustrial companies have made larger
earnings during the last two or three
years than has been indicated by the
monthly and annual statements Of re:
ceipts and disbursements. The annual
report of the Delaware, LacRawanna &
earnings equivalent to 20 and even 25
and 80 per cent on the par value Of the
stock. An authority in the coal trade
says that the actual earnings for 1907
were nearer so per cent on the stock
than any other round figure. For the
last fiscal year it is understood that the
earnings were considerably larger. Thi:
company has declared small extra div
idend in addition to the per cent tina
had been paid for some time. The man
agement has pursued the policy Of pay
ing for extensive improvements out O
earnings instead of issuing new securi
ties and giving to shareholders the RICH
to subscribe to them on favorable terms
The declaration Of the regular ! pc
cent quarterly on Consolidated Gas hat
a favorable influence on sentiment
which is growing somewhat fearful o.
public utilities.
The secretary Of the treasury ha
signifed his intention Of placing witt
depositary banks such amounts as ma,
be necessary to relieve the strain tina
must develop as result Of big crop
and general business expansion.
Some people are inclined to under
estimate the Importance Of the favor
on the country's general business il
the next twelve months, but in eli
cles where facts and figures are stud
led, and where conclusions based O.
history are drawn, it is realized tina
the backbone Of national prosperity de
ponds for it's strength in great par
Railroads are in the market for heav
on large crops. Hence it is that clos
observers, seeing bountiful harvests as