The Washington herald., 1907-09-12
WALL STREET NOTES
Union Pacific Bonds Will Be
Disposed of at 81.
DIVIDEND MAY DROP
Talk of Increase Three Months Ago
Has ClRngcd Entirely and Rcduc-
tiOn Is Discussed, but Is Not Prob
able-Wcstern Union Fails to Make
Public Statement of Earnings.

New York Sept. lion Tuesday Mr
Hartman gave assurance that he could
see no signs of a panic in the West. and
yesterday assurances were given from an
authoritative quarter. if the testimony Of
reputable brokers could be trusted. that
support would be given the Union Pa
cihc convertible bonds at 50. These are
the bonds that some months ago were
offered 70 stockholders OF the company
at %, but which afterward went TO a
syndicate, and viii in few days be dis
tributed among the syndicate members,
only a comparatively small amount OF
them having been sold.
Mr. Harriman's assurance that he could
see no sign Of a panic was hardly the
kind Of robust consolation that the trad
ers wanted and the assurance that the
bonds would be protected at 50 was re-
garded as Of similar kind. for it would
be a pretty unsatisfactory state OF affairs
that would make the lending of support
at such a low figure a matter Of neces-
sity.
in many quarters the view taken of the
Union Pacific situation is that, as the
company has now obtained all the money
TO discharge the obligations incurred in
the purchase Of stock of the Baltimore
and Ohio and of other roads last year,
and has financed its extension and i'm
provement work, the market for its stock
and convertible bonds should work high
er. With this view some important houses
do nor ar-vna ouE n -fr,glo- Ifeoe,-,,.,,,,.,, 4.
exists in some quarters in London. The
ground for this disagreement is the sup
position that the c0mpany's financial
needs have not all been provided for. and
that between the lines Of Mr. Harriman's s
forecasts Of the greatly increased earn
ings there is an intimation OF the need Of
increased facilities to accommodate the
ever growing business. There is no doubt.
however, that talk Of a further issue Of
securities by the road al this time is de-
cidedly premature and that for the pres
ent 1t need not be considered as a market
factor.
Less than three months have elapsed
since Wall street worked itself into a
somewhat optimistic frame Of mind over
the Amalgamated Copper dividend, which
It expected would be increased 10 a rate
higher than s per cent at the August pay
ment Now the talk is of a reduction
Than this hardly any better indication
could be desired of the Quickness with
which sentiment sometimes changes in
the financial center. 1t was a mistake to
expect an increase in the dividend at the
August term; It may be a greater mis-
take 10 count on "a reduction now.
Some Of the copper sharps who not
long ago proclaimed that the trade was
in fire shape. have recently been peeping
through knOthOles in fences. delving into
rubbish piles. investigating the ends OF
docks. and the ballast of ships, and all
the time working themselves into a dan
gerous state Of excitement over the awful
sight OF the metal they have discovered
The weakness in Amaia,amated was
much more pronounced than 1t had been
at any other time recently and the stock
on heavy transactions dropped 10 new
low record for the present year. Natu-
rally the effect was felt through the en-
tire list.
Western Unions decision to withhold
publication of the quarterly statement OF
earnings was not liked in the street. For
years the con1pany's reports have shawn