New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-03

ADVANCE IN PREFERRED.
Company May Be Formed to Take
O1er Roads Holdings.

sharp advance In Union Pacific preferred stock.
ordinarily inactive issue. started afresh
dag the rumors Of plans for the formation of a
company for taking over the Union Pacifcs stock
holdings In other railway properties. Opening at
So y point mp. the preferred to 90, closing
sJi. a net gain FOR the day Of points sales OF
only 500 shares The common stock advanced SIS
points, and the entire market stimulated by
the strength and activity Of the Union Pacific
issues.
At the office Of f II. Hartman. president Of the
Union Pacific 1t said late in the afternoon that
statement had been made would be made by
Mr. Hartman concerning the rumored plans Of the
company. and bankers identified with the Union
Pacific were similarly reticent.
That some plan Is being worked out TO enable
the Union Pacific system to divest itself Of the
actual ownership 81 It's present holdings Of Atcht-
son. New York Central, Baltimore 4 Ohio. Illinois
Central and other stocks iu anticipation ~ action
TO lie initiated bv on the recommendation of the
Interstate Commerce Commission and to enable
tie Union Pacific Railroad Company to divest itself
~ It's present direct control " the Southern Pacific
Company IL commonly believed 10 he the fact
The strength Of the preferred stock was generally
thought yesterday to be related that project il
being declared that the preferred would be equally
entitled, with the common, 10 share I'm the benefits
in case the Union Pacific Investments should be
turned over to a new corporation. The preferred
stock OF which Ss9 56e 800 Is outstanding Is closely
held. and It IS understood that accumulation has
been going for the last two years. The move
ulent Of yesterday. II is thought IN quarters.
represented further action IN that direction. indi
eating the continued desire of ,he controlling in
terests TO obtain much possible or the issue
with the object minimizing the probability OF OBJ
lection on the part OF preferred stockholders 20
the plan believed to have been framed
There Is ground for believing. however. that
that plan contempiates not the organization of "a
holding company. but the formation OF a banking
corporation OF some sort, which shall take
all of the investments OF the Union Pacific In other
roads and shall be entirely distinct from the Union
Pacific Railroad Company; the purpose being to
avoid the possibility Of repetition the difficulties
encountered by the HIN companies In the forlna-
ton OF the Northern Securities Company
Just two years ago the stockholders OF the Union
Pacific authorized the increase of the preferred
stock from $3.50 10000 TO $20OO0O,OD1 None OF tho
additional stock has been issued and 1t is thought
In quarters that the advance in the preferred
may indicate purpose on the part OF the
agement to PUT part OF IT >,fore long The pre-
ferred sold I'm 1906 high 99l4. President Harr-
mans circular to the stockholders in April. 1905.
announced 1t the policy OF the company "to
finance at least part OF its capital requirements
especially such arise in connection with the
QUESTION of stocks of other companies through tho
issue of stock rather than through the creation
of fixed interest bearing obligations
1t has been understood for several weeks that
the Union Pacific would within few months do
some financing and now that the money market
has improved to such extent TO make IL ad-
Vsabe for the AtChison to issue its deferred plan
Of Offering convertible bonds to its shareholders. It
may be that the Union Pacific directors will judge
of the authorized preferred stock at n figure not
much below par.