The Washington herald., 1908-01-09
FURRY IN PRICES
Two Influences Cause Change
in Quotations.
SMALL DIVIDEND BY N. P
Railroad Company Decides TO Pay
Only 3-4 Per Cent On Its stock.
Announcement of Chicago aad
Great Western Receivership Also
Has Eject ON the Market.

New York, Jan. S.-There appeared to
be Just two inhuehces, and these alone
that We're acutely responsible for such
fluctuations in prices in the security mar
! ket as occurred to-day. They were, first.
the decision of the directors Of the North
ern Pacific Railroad Company to pay
only the regular quarterly dividend of 81
per cent upon the c0mpany's stock. not
increasing this by an extra distribution,
and, secondly. the announcement Of a re-
ceivership for the Chicago and Great
Western Railway Company.
The discussion of an extra dividend for
Northern Pacific stock has been matter
OF perenniel occurrence in Wall street
during the last eight months, The basis
of 1t is the well-known circumstances that
there stands in the Northern Pacific
treasury large surplus stock of money
that it Is the intention of the manage
ment Of the company 10 distribute to
shareholders at some fitting time, this
sum. of course. being aside from the
profits accruing to the company from the
prospective sale Of its equity IN the Bur
lngton property to the Great Northern
Railway Company.
No Intfmation Given.
There has been at no time any official
intimation that this distribution was like
ly 20 be made on given date, and there
has not been in Wall street during the
last week any general and confident be-
lief that an additional dividend would
be made in view Of present financial con-
ditions. This accounted for the fact that
when it became known to-day that only
the regular dividend on Northern Pacific
stock had been declared the stock did not
display noteworthy weakness, although it
sold at one time at a quotation five points
lower than one previously touched during
the week
1t deserves finally to be said on this
point and it is a consideration that was
evident to-day, Wall street holds fully in
mind. that the distribution In question
must be made, If AT all, during the present
year, as on January J. 1909 fun payment
VIII have been made on the S93 900. 600
new Northern Pacific stock. and this
stock will share then in any and all dis
uibutions made upon the Northern Pa
clfc shares.
At present the new stock, although re-
ceiVing all regular dividends declared by
the Northern Pacific Company, is not en-
Titled TO receive special or extra divi-
dends The failure of the market % be
tray any great amount of discomposure
over the news of the Chicago and Great
Western receivership was also indicative
OF the calmeT temper with which such
events are now received in the financial
district and to the extent to which they
have been discounted in prices.
History of Railroad.
The history of the Chicago and Great
Western Railway Company has long been
notorious. It has been since its inception
a source OF Tate-cutting and similar dis
turbance in the railway world, and has
never managed to get itself into anything
even resembling strong financial shape,
earnings of the road in recent years have
not made a very unfavorable showing.
The specific adversely with which the
Chicago and Great Western Railway
Company is confronted Is the necessity
of raising money for the payment Of ma
turing short-term obligations at a time
when the operation is particularly diff
cult.
It seemed TO be commonly thought to-
day that the receivership was incident 10
a reorganization Of the Great Westerns
finances, involving the issue of a first
mortgage upon its property which it is
hoped will be largely taken by the for
eigners at present so largely interested in
the road.