The Birmingham age-herald., 1907-05-05

privileges of ownership in the company's property. But the idea is, of course, ab- surb. Union Pacific preferred stock is no less a part of the capital stock of the company than Is the common stock, and the company could not divest itself of it's assets without giving the preferred stock its due share in the proceeds thereof"
 It is understood that the Morgan First National bank party Is to have a rep resentative on the Union Pacific executive committee and a larger representation on the board of directors of that company. On the big break in Union Pacific 100000 shares were acquired in one block by private sale. The price at which the stock was acquired was said at the time to have been sill. Other stock was bought by the same interests about the same time. The aggregate holdings of the Morgan First National bank party en- titles it to a voice in the management. One report has it that J. P. Morgans son is to go on the executive committee, and that possibly he may become it's chair man, although this latter statement does not receive general credence
 The formal entrance of the new interest into the Union Pacific Is less surprising than it might seem at first glance, and does not mean reorganization or weak ening of the Hartman power. Relations between MT. Morgan and MT. Hartman have not been as strained latterly as most people believe MT. Hartman became a member of the executive committee of the Erie railroad more than year ago on the invitation of Norman B. Ream, the morgan representative on the executive and finance committees of that system. MT. Ream and MT. Hartman had been as- sociated on committees for many years and understood each other thoroughly t,af- tIrfp Hartman should reciprocate is only nat .ural, and. as he never does things by halves, it follows that he would want to make the play strong one while about it by calling into his counsels the son and heir of his ancient enemy. It is believed also that Mir. Ream will en- ter the Union Pacific directory. although the latter Is more inclined to get out from under some of his burdens than to take up new ones.
 In this correspondence attention has been called to the need of cutting up standard bonds into smaller lots so that they will appeal to a wider range of
 investors. In this connection an invest ment authority says: Based upon a safe and sane study of the situation, it seems reasonable to conclude that when rail- roads, public utility, and other corpora tlons interest people of small means in their investment securities. they will ac- comblish as much toward protecting their property rights as by any other one act. By such policy, not only would thrift and economy be encouraged but thousands of investors of small means also would be converted from the vicious habit of buying securities exploited by dishonest promoters, and the commend able custom would largely prevail of in- vesting such money In the issues of leglti- mate corporations. A railroad or other corporation, through the medium of the investment banker, is dependent upon the public as the market for its securities. This being indisputable, two things are absolutely essential: First, the genuine value of the investment; second, the mar ket for the investment. Then why should not the corporations and the bankers combine In educating the public as to the attractiveness of bonds for investment purposes issue them in small denonina- tions, and thereby create the broadest market possible?
 It is an established custom with French and other European financial institutions to issue investment securities in small denominations. The result Is that the investing power and the saving proclivi- ties of the French people of limited means are well known the world over. On the other hand. 1t is in only very excep- tional cases that bonds listed upon the New York Stock exchange are issued in