Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-16
BULLS AND BEARS

special dispatch 10 The Star.
NEW YORK. August 16.-It was expected
that operations during the next few days
would be governed considerably by the re-
suits Of the meetings OF the directors OF the
Union Pacific. Southern Pacific and st.
Paul. scheduled to be held today. II the
Union Pacific dividend should be increased,
and II dividend should be declared on
Southern Pacific common. it was believed
that there would be considerable profit
taken by the room traders. on the theory
that all OF the good news was out, and that
those two stocks were selling as high as the
expected dividend declarations warranted.
There was good reason for believing that
the heaviest buyers Of Union Pacific. South
ern Pacific. ST. Paul and Chicago and
Northwestern for many weeks had not
based their operations on the declaration of
a dividend on Southern Pacific or an in
crease in the Southern Pacific dividend at
this time. Unmistakably highly important
plans with respect to these four large rail-
roads. and perhaps others. has been under
way for some time. and apparently some OF
them are to be announced In the near fu-
ture.
A% :
. It might be taken as fact that g. few
individuals outside of. the most important
interests In these companies have been given
a general idea Of what has been going on
and consequently their predictions as to
what the stocks Of these corporations would
do In the market has been well founded.
~
The announcement that the directors of
the Chicago and Northwestern have recon-
mended doubling the capital stock Of the
company was understood to be the first OF
the important announcements that are to
be made within the next few weeks affect
ing the four companies to which reference
has just been made. 1t was believed that
the announcements to come would be even
more important in many respects than
that Of the Chicago and Northwestern di-
rectors.
*
There was some inquiry as to why the
Wabash stocks have not displayed greater
activity in view of the prospect Of the de-
benture bonds being taken out Of the way
of the stock. 1t was known that men who
have heretofore been given charge of stock,
market operations in the Gould securities
nave not been enthusiastic with respect
to the present movement in the general
market Many Of the largest interests in
the Gould properties are out of town.
George ]. Gould himself Is abroad and it
was understood that the men in the street
WIZ nave uccu active IN the STOuiQ STOCKS
are disposed to start an independent move
ment In them. Those who fully UNDER
stood the proposed financial plan for the
Wabash realized that the position of the
preferred and common stocks marketwise
was much better than II has been at any
time since the reorganization of the COM
pany. Under the proposed plan 1t was ex-
pected that provision would be made for
further developments of the property and
that with the debenture. bonds out OF the
way 1t would be possible to apply earnings
to dividends on the preferred stock at least.
Men interested In the matter were confident
that the plan would be ratified by a large
majority vote Of the stockholders.
= Interests which have been in a position
to know what disposition would be made Of
the Chicago terminal transfer property
but which have been extremely reticent re-
garding the matter. said today that a plan
for the disposition Of the property would
probably be ready in September. Well in
formed railroad men maintained that prac-
ticaly ever since. or even before default
was made on the company's bonds. the
property has been In the control Of James
J. Hill and his associates, and that un-
doubtediy 1t would be turned over to the
Burlington.
X
No one seemed to have absolute informa-
ton as to what the Union Pacific dividend
would be. and as to whether a dividend on
Southern Pacific common would be de-
clared today. They confidently believe,
that a dividend at the rate of
per cent year would be declared on the
latter issue. and they will be greatly dis
appointed II the dividend on Union Pacific
is not increased to a per cent annual
basis.
Under foreclosure proceedings all the
rights and securities of the Inter-