Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-17
BULLS AND BEARS
special Dispatch to TIE star.

6peciaa Daspasch 70 The star.
NEW FORK, August 1T-There was q
large amount Of profit taking In the stocks
which have been leaders OF the market for
some weeks. The general notion was that
Union Pacific and Southern Pacific has
been selling high enough on the basis Of
the most sansuine expectations as to 9ivi-
dends.
These stocks were expected to react mod
erately. but. on the other hand. It would
not cause surprise to see them go still
higher. There was a great deal OF dis
satisfaction over the failure Of the direct
ors OF the Union Pacific to announce the
semi annual dividends and over their fall
ure to give any intimation as to when they
would be made public. There was entirely
satisfactory authority for the statement
that the dividend on Union Pacific common
stock has been fully decided upon and that
the policy with respect to dividends on
Southern Pacific common had also been
agreed upon. All that remained was to make
public the result OF the deliberations OF the
directors. In some circles from which has
come excellent Information with respect 70
the movement in Southern Pacific stock, II
was even claimed that the dividends on
Southern Pacific would be at the rate OF
has been most commonly reported.
No one seen today had any definite infor-
nation as to the actual rate agreed upon
in the case Of either company.
+
It was believed that St. Paul has reached
the top notch for the present, but little
later this stock was expected to sell higher
also. A well-informed interest said that he
was confident that the management would
carry out its original intentions of issuing
convertible bonds as soon as the proceeds
were needed and the bond market was in
better shape.
He was thoroughly familiar with the
routes by which the st. Paul plans to reach
the coast, and he estimated that the total
cost of the main line extensions with
branches would be 125,00O'OOO.
\
Well-informed railroad men seriously
doubted that the Chicago and Northwestern
would attempt to build an Independent line
to the coast. A man who has been familiar
with the territory between Chicago and the
coast for the last thirty years or more said
that he was unable to see where the NORTH
western could locate a satisfactory line to
the coast, inasmuch as all of the good ter
ritory is now taken up and the favorable
routes are also taken up. He said that. in
his opinion. the Chicago and Northwestern
was badly in need of an outlet to the
coast. but that the management had waited
too long to build such an extension under
favorable circumstances.
X
*
There seemed genuine confidence that the
dividend ON Atchison common would be
advanced to at least 5-per-cent basis
In October and it was rumored that a still
higher rate might be declared. but that
anything In excess of 21z per cent for the
half year would be in the form of an extra
disbursement. Friends of Atchison expect
ed the stock to sell at par at least.
X
The sentiment with respect to the Rock
Island issues was more favorable now than
at any time since the organization of the
Rock Island Company of New Jersey. It
was not believed that the dividends would
be resumed at an early date, although the
earnings are accommodating much more rap
idly than was foreseen when dividends
on certain issues were dropped in order
that the surplus proceeds might be REIN
vested in the property. 1t was said that
there had been substantial buying OF the
Rock Island issues for some little time and
that the next movement in the market was
likely to be In the low-priced railroad
shares, to which class the Rock Island is
sues belong.