The San Francisco call., 1908-09-06


since risen severaf points, must react,
as the market had gone up too fast.
They evidently forgot how fast and
how far it had gone down.
In order to account for this week s
advance in Southern Pacific after the
saturnalia and subsequent failure of
A. o. Brown, the street, among other
things, had the preferred stock about
to be retired and the common stock
although, perhaps, soon. This week
the stock was selling on. it's merits,
the bears forcing the price UP by
urgent, short covering.
LEADERSHIP EXPLAINED
The explanation for the Hartman
Pacif1cs being singled out for leader
ship is perfectly simple, and the weeks
creations of Wall street gossip were
as unnecessary as they were far
fetched. Union Pacific at 160 still
yields 6H per cent on the investment.
Southern Pacific at par yields per
cent. TO get into line with other rail-
road shares, such as Northern Pacific.
st. Paul and Pennsylvania-all of
which at current prices return under
per cent-Union Pacific would have
to sell above 200 and Southern Pacific
above 80.
This is certainly elementary enough;
the doubt has existed however, until
the last month or so whether the Har-
riman Pacifics We're earning their divi-
dends with. the same margin of safety
behind them as the great systems to
the north and east. Misgivings on this
score have, in the light of recent traf-
fic statements, been pretty we'll dissi-
pated. Union Pacific has reported for
the fiscal year 1908 dividend surplus
of IL to Is per cent on its common
stock, the years decrease in net earn
ings being s2,100,000. or only a little
more than i per cent. Southern Pa
cific's net loss of $S,400,000 was more
than 4 per cent on its common share
capital, but this compares with a IL
months period in which the dividend
surplus was Ia per cent. The tide .hav-
ing turned in the net earnings OF both
these companies, it is now safe to ex-
pect that for the current fiscal year the
amounts available for dividends will
be as large at least as they were in
the twelvemonth ending with June.
This is the same as saying that the
margin back of dividend payments will
not only be ample. so far as these
companies are concerned, but, that it
will compare favorably with the safety
margin" of almost any other standard
railway property. 1t is the realization
OF these facts, as we'll as of the dis
crepancies in market prices between
these and other stocks. that has given
the impulse to the recent movement
in Union and Southern Pacific.
SIGN POSTS FOR AUTOS
The New York Times announces that
it will undertake the work of marking
an automobile path" or roadway,
across the continent, from New York
to San Francisco and return, by means
of sign posts, in time for the big trans
continental contest to be held next
July. The route will be via Albany,
Buffalo, Toledo, Chicago, Omaha, Ogden
and Sacramento to San Francisco, fol-
lowing closely the line of the Union
Pacific and the Southern Pacific rail-
roads from Council Bluffs.
Leaving San Francisco the shore
route will be followed down to Los
Angeles, San Bernardino and Daggett
to the Mojave desert, and will cross
the desert leading on to Death valley
and through this ,desolate stretch to
the Nevada mining district. Goldfield
and Tonopah. All this portion OF the
journey will be away from the rail-
road, and another cross country stretch
will be followed from Tonopah to Ely,
where a mountain road leads across
the mountains to Salt Lake City. From
Salt Lake the road is still mountainous.
tending east and south to Denver, while
from Denver the descending prairie will
be followed to the Missouri once more.
Crossing Kansas the cars will run
as direct as possible to Kansas City.
and then across Missouri to st. Louis
From ST. Louis the road will lead
across Ohio through Cincinnati and Co
lumbus, with Pittsburg the next OBJ
jective. Then will follow another pic
turesque run across the Alleghenies,
leading to Washington. through the
Potomac valley, and finally the road
will turn north through Baltimore and
Philadelphia and crossing Jersey will
return to New York. ~
The Fiat, Zust, ISotta, Renault,
Lozier. Houpt, Thomas. Gearless and
Maxwell cars have already been en-
tered in this transcontinental endur-
ance test.
MEDAL FOR SHOT PUTvTER
Ralph Rose, the young California
giant and champion shot putter of the
world. appeared at the carnival of track
and field sports at Celtic park for the
Firemen's memorial fund. following
the parade and reception Of the Olym-
pic athletes on Saturday. A special
event was added to the program, so
that the crowd of enthusiasts at the
park had the opportunity Of seeing the
great westerner among the other Olym-
cial medal was struck for Rose as q
souvenir of the occasion.
The great shot putter is the guest OF
w. l.. Jones, who had merely to sug-
gest the appearance of Rose at Celtic
park on Saturday, when the champion
replied that he would be only too glad
to appear at the games.
BENEFIT FOR CLUBHOUSE
Nearly all Californians in New York
are cooperating to make the monster
vaudeville performance tomorrow a
success. Mrs. Beaumont Packard. the
president, and Mrs. Lou Bates, secre-
tary, have sent out the following:
The Golden Gate professional club
takes pleasure. in announcing their
forthcoming monster vaudeville bene-
fit to be given at the Belasco theater,
Forty second street and Seventh ave-
nue.. on the evening of September 6,
1908, in honor of California Admission
day, and to raise funds for opening
their new clubhouse and home for