Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-03-01
NINETY MILLIONS IN CUT. off
Divisible Surplus Distributed by Union
Pacific to Common Stockholders,
COMPANY ACTS TO AVOID LAW SUIT
Holders Of Common Threaten Action
ana Powers plan 10 Make APP
portionment in script
Instead of cash.

portionment in script
Instead of cash.
Pressed for action by common stock
holders, Union Pacific interests are work
ing out a plan for a distribution of the diVis-
ihle surplus. amounting to SgJO0O,OOy which
may net each holder Of common stock S5
"A share Powers among the common stock
holders threaten legal action against the
company II tins distribution is delayed be-
You'd the end of the present fiscal year,
June 49, No time has been set for the
contamination Of the transaction, but It
is the belief in financial circles the Union
Pacific will see it's way clear to complete
tho deal by the first of July.
The principle for which the common
stockholders are contending is the right to
receive and own the divisible surplus of
the company. and the company's conces-
sion will be- recognition of this principle.
including the proceeds of the sale of the
Great Northern ana Northern Pacific
stocks and rights and the net surplus
after dividends Tor the six months ending
December 81. 1905, are made, the Invisible
surplus is estimated at $90WO,OOO Inc
plan. so FIR as known, calls for payment
of a scriO dividend of between 50 and 10
per cent in Union Pacific I per cent pre-
ferred stock.
In view Of the fact that the Union Pacific
needs at least S7JCtO,OJ0 in cash for the
completion of work outlined for the next
two years and finally to absorb its shares
in the Los Angeles. salt Lake x Pedro.
together with the fact that the Union Pa
cihc will be paying only about s3,UWWO a
year for the use of the entire surplus fund
obtained from the profits on the original
Northern Pacific purchase-profits amount
Ing to $50, coo 0Oo-the advantage Of a scrip
distribution over a cash distribution is
apparent to the stockholders. and they
therefore favor the plan adopted by the
company.
Rate ON Produce.
The Wabash has announced "a rate which
will greatly affect the Omaha butter, egg
and poultry market. but what that effect
will be the railroads and commission men
are now 1gurine out The road has an
nounced it will protect the through rate on
butter eggs and poultry through the
Omaha market, to stop in Omaha not to
exceed twelve months.
Before President Roosevelt delivered his
last message to congress which stirred up
rate matters it had been the custom to
in the cold storage houses of Omaha. col
lecting from the neighboring towns and
then to ship east in carload lots. the COM
panies rebating to the shippers. All the
roads did this, but when the agitation
started the practice was stopped and the
Omaha market suffered The Wabash now
has announced 1t will protect the through
rate, which means it will publish rate
whereby these products may be concen-
trated I'm Omaha and then forwarded with
out violation OF the law.
Boost for summer Travel.
Railroads will unite with the hotel keep
ers of California to promote the summer
travel to the coast and the hotel men are to
make less than one-half the winter rates
for all summer tourists \ daily rate of
SEQ for the round trip viii he made 10
Portland and the Puget Sound country and
to California. and trip to both will he
made by paying an additional $3.50
People have got the summer habit. -
said L. w. Wakoley, general passenger
agent OF the Burlington, and the railroads
will assist them to cultivate that Ia bit
More and more each year the people OF
this country are learning the advantages
OF travelling in the United States over thai
offered III any European country and
focking to. The Portland exposition last
year was an eye opener to the railroad,
and the roads were quick to profit New
trains have been added and better accom-
modations furnished all along the route
Last year one county in Nebraska fur
nished over 400 coast travellers. Farmers
teachers, students, business men and edu
Gators. all want to travel in the summer
and when they learn they can live in thes,
California palaces In the summer for les!
than ono-half the winter rates they vii
continue TO flock to the coast"
Rate VIII he Ignored.
Other Omaha Chicago railroads hav
agreed not to meet the reduced rate o
tho Wabash and Great Western on corr
for export via the Atlantic seaboard The,
have agreed to stand by the publishe-
tar.n which Is a combination of the tw
locals and cent higher than the rate o
21la cents of the Great Western to Balti
more or the rate of % cents of the Wabas
10 New York. The roads have been arguing
over the division OF the rate for som
months and have finally agreed to let tn
rate stand and to accept the grain whic
will be compelled to move over other road
because the Wabash and Great Westcr
cannot handle IL.
heSotuttou an the milwaukee,.
This resolution was passed by the Boar
of Directors of the Omaha Grain exchans
at meeting Tuesday:
Whereas, The Chicago. Milwaukee & 81
Paul Railway company, seemingly no
being satisfied with the injury inflicted
short time ago In discriminating ngains
this market and the welfare OF Omaha /
making lower rates on grain from Kansa
city than from Omaha TO the Atlanti
ports, is now doing all It can in variou
ways To prevent grain from coming TO thi
market from points on its road In Iowa
and,
Whereas. The Milwaukee company has
large business in and out of Omaha an
should certainly show a spirit of fairness
therefore. be IL
Resolved, That the heavy shippers b
advised of the attitude of said compan
and what II is doing and the injurious el
feet IL viii have on this grain market an
Omaha in general.
MEAT FOR THE PHILIPPINE!