New-York tribune., 1906-08-18
HARRIMAN CUTS MELON
PACIFIC STOCKS SOAR.
Z. p. on 10 Per Cent Basis -FiUe
Per Cent for S. p. Common.

Following the announcement. almost at the
beginning Of business on the Stock Exchange
YESTERDAY that the Union Pacific had declared
s per cent semi-annual dividend and the
southern Pacific common its first dividend also
semi-snnual one Of 2la per cent. Wall Street
saw one IF the widest stock markets Of recent
wears nadder than anything since the Northern
Pacific panic. Both stocks mounted by leaps
and hounds. under pressure Of almost frantic
buying. until Union Pacific reached 179s4, a
gain Of u points and Southern Pacific went
70 So
other railroad stocks caught in the swirl,
went up rapidly. until the whole tone of the
market showed the effect. Pennsylvania and
New York Central showed large rises. Atchison
rose 2ss and Reading 212 Steel common gained
couple Of points and Amagamated Copper
81
Heavy trading was the order of the day
Union Pacific. naturally led the market with
3 total of 633 700 shares, followed closely by
Southern Pacific with $4,000. The days total
ssles we're 2.43s.017. figure exceeded only once
this year
Profits Of starting size were estimated to have
been made by pools in the two stocks held for
ihe benefit Of the insiders. Stories of 100000
share pools in both stocks were ahoat and
suesses at the killing ran all the way from
SHORTS BADLY PUNISHED.
Considerable surprise and indignation were
manifest in conservative banking circles be-
cause news of the dividends was not announced
On Thursday. In some quarters the declaration
was made that the rates of dividend had been
decided on Wednesday and that knowledge had
Jed TO the accumulation Of huge personal profits
Deferment of the announcing Of the dividends
certainly caused considerable selling short late
THURSDAY. and the efforts of these shorts TO
cover. with the utter Tout Of those who had
been bearing the Hartman stocks. lent much
heat 10 the atmosphere around the Stock Ex-
change. Some estimates of the short loss
placed it at S5.00Oe90
The excitement communicated itself to the
outside world Spectators began TO throng the
galleries while the rival ''rubberneck wagons
CLEARED. for them. a harvest almost compare BILE
10 that Of those who held the Hartman stocks
Ihe Official announcement Of the dividends de-
CARED was follows:
The meetings Of the executive committees Of
lhe Lnion Pacific and Southern Pacif1c were de-
sEtd ty the absence Of Mr.. Hartman in attend
ing the funeral of Mr. Wilcox and were NOT
ned until late in the afternoon yesterday 1t
s as announced this morning that semi-annuaI
aElaehd Of per cent OH the preferred stock
stlnl-annual dividend % > per cent on the COM
a- s-Gl sto,K OF the Union Pacific. and semi
annual dividend The first oe 21y per cent upon
me common stock oi TIE Southern Pacific com
te.y nad been declared. The dividends Of the
Chon Pacific company payable October 1
% me stockholders of record al II o'clock m
VI september -, and the dividend of the Soufh-
en- company IS payable October | TO holders oP
me dividend warrants. It is understood that of
.alEldend Of . per cent Oh the common stock
Hls L mon Pacific per cent is charged TO sur
iIus earnings of the railroads and per cent to
income from Investments
RUSH TO Buy UNION PACIFIC
with lightning speed the news spread to the
sloek Exchange and the brokerage Offices and
1in'st Immediately food OF orders to buy at
ue market came pouring in The floor of the
hAchange became swiTlng bowling pandemo-
mnm. Union Pacific which had opened at
4'o'z jumped points I'm an hour while South
IN Pacific followed it up 6 points
BY noon Union Pacific had climbed to III and
southern Pacific 10 S72s. and the orders still
continued in 5000 and 10000 share blocks.
iIsalns VAS fast and violent that the ticker
~ far behind the actual transactions on the
"'or and AZ one time when Union Pacific was
gooed al 1917 the tape, it was selling on
e Exchange for 1el.
me Hartman stocks continued their sensa-
uolal s'zvance after the noon hour, until soon
N1T : p m. Union Pacific had touched 1888
ehd Southern Pacific 50 Half an hour later
.hon Pacific touched its top figure. 179$i, while
southern Pacific had dropped back to Ssls
Slosing time found botn selling or a trife Union
rsclc closing at I1sIk and Southern Pacific
ets7A
DIRECTOR EXPLATNE ACTION
she unusual size of :he ircTense in the Union
Fschc ds.dend created much stir IN banking
arc railroad circles. An increase Of per cent
year bringing me stock To a per cent basis
"s1 been looked fo;. DUT Ehe formal announce
men' of the 3 per cent semi-snnuaI dividend
outing the stock ~ Per cent basis some
"hsf staggered even the most sanguipe prophets
~ an Increase. 1t was noted that IN the official
announcement care was taken 10 make clear the
statement that only per cent Of this came from
earnings by the railroad systen the other
coming from accUrnIlations on stoos holdings
On this suoJect director of the Union Pacific
esid
TIE wisdom of tic conservative p9!lcy pu--
Sgs+i ~ Nj EaTTirlan is Union Pacific and
soG,heTn Pacific is 2buEdantly shown by the re-
suits acaIe.ed. - spite % opposition end the
NlamOr o,r dividends ard grss teT dipi6enis, he
Iss Fteadfsstly adhered 70 h:s purpose ID buiia
W ava improve tlis physical condition of the