Omaha daily bee., 1907-05-08
UNION PACIFIC LEADS ALL
! arriman Stocks Jump to First Place on
the Market
CAUSE OF GREAT RISE LIVELY QUESTION
ManipuIntors Cannot Get Away from
Fact Company Earned Fifteen
Fer Cent on Common
Last Year.

In Mondays advance from I4iM to las
Union Pacific assumed the leadership OF
the entire stock market. After the prelimi-
nary rise Of 81 points early IN the week it
reacted to 135N on Wednesday, but on the
following day Il closed at 150h. On Thurs
day Union Pacific preferred. stock seldom
traded in. half OF the S1OOOOO,OOO issue being
held in a pool by insiders, suddenly jumped
from 81 to 80 on few hundred shares.
Upward of 100000 shares Of the common
stock changed hands during the i've full
days between Mondays opening and Tues
days closing, and as consequence little
else but Union Pacifc's activity was talked
of in downtown brokers' Offices. II was
not until Friday that the earnings for
March were published, showing an increase
of Sl,O93,s7O in gross and Sl5O.6l6 in net, max
ing a gain OF s5,462.52l gross and S1,147 4s6
for the nine months of the current fiscal
year. says the New York Evening Post.
Can New stock GO Mt Part
Toward the close of the week it was
heard that the company was planning to
issue part Of the S1Oo.OOOOOO preferred stock
authorized in May of 1896. Before that con-
clusion is accepted as explaining this weeks
upward movement. It should be learned
whether the new stock can ne sold to share
holders below par. The shareholders au-
thorized the new preferred stock blindfolded
and no official reference to the subject has
since been made, but from recent events
it would seem from the following statement
made in May Of 1905 that two years ago the
Union Pacific management had some hold
ing company idea:
OF the S10OOOOO0O first lien convertible
bonds originally issued, S54, 255 900 have been
converted up to date into common stock,
and II is assumed that the remainder Will
likewise be converted before May l, 1905.
This situation enables the company
to pursue the wise policy which REQUIRES
should finance at least part Of its capital
Internationally such as arise in
connection with the acquisition of stocks
Of other companies-through the issue OF
stock rather than through the creation of
fixed interest-bearing obligations.
stiu Open Question.
Since then the Union Pacific has bought
a half interest in the San Pedro: also
shares Of the Atohison. Illinois Central, St.
Paul. Northwestern, New York Central and
Baltimore & Ohio, at an outlay OF $l2s,-
OOn,OOO Whether such extensive "acquisi-
ton OF stocks of other companies" was
contemplated in July Of 1906 is open to
question. But for that matter, there are
many other points on the same subject
upon whRh the shareholders have received
no Information.
All that can be safely said as to the
cause of this weeks interest in the Union
Pacific is that last year the company
earned over Is per cent on its Sl95,479OoO
common stock, and since July an increase
of $1,147,4S6 in net has been reported. At
this weeks high price the stock yielded
6iR per cent on the investment, compared
with ga per cent on Pennsylvania, 5 per
cent on Great Northern and s1k per cent on
Reading. It might be added that less un-
easiness was displayed over the outcome Of
the Hartman investigation But in that
connection it should be kept in mind that
as yet the last word on that subject has
not been spoken.