New-York tribune., 1908-08-28
SOUTHERN PACIF[CT
Dividend Increase and Purchase of
Frisco RumOred.

Great activity and strength in Southern Pacific
and Union Pacific stocks in yesterdays market
were accompanied by reports that the Southern
Pacific would increase the dividend to a I per cent
annual basis and that deal had been made with
the Rock Island company by which the Southern
Pacific would take over the st. Louis & San Fran
cisco
Neither report received confirmation IN official
quarters. and it considered likely that the
Hartman interests would increase the Southern
Pacific dividend this year. despite the favorable
showing made by the company in comparison with
the greater number OF other big railroads in TINS
country. Nor it considered probable that the
Hartman interests would to take over the
Frisco system unless at low price.
1t is understood in certain circles in the Street
that the Rock Island management would he glad to
get rid of the Frisco this time. especially as on
December / 100000 notes of the latter company
fall due. for which 1t is reported no arrangements
for financing have been made. The ST. Louis
San Francisco could be of service to the Southern
Pacific. and it is conceivable that under certain
conditions the Hartman interests would be willing
to buy it. Rock Island preferred was one of the
strong features In yesterdays market
Union Pacific led the general market in an ir-
resistble manner. making high record price
for the year. and catching on the advance num-
ber of bear stop loss orders. The buying for this
account did not bring the movement to an end as
the orders found 160 while after that price
was recorded the stock continued TO advance to
tions for rise reflected IN the advance in the
Hartman shares, and the genuine strength in the
issues was responsible for a material IN rrease IN
public buying of the general list
1t is understood that number of calls on both
Union and Southern Pacific mature at the end OF
the current month. Once before Union Pacific was
buled the way it was yesterday through an issue
convertible bonds, and it is interesting to note
that the Company's convertible bonds have been
strong in the last few weeks, recording a further
advance yesterday
In addition TO the large earning power of the
Union Pacific Railroad. factor making for
better price for the stock. the increased market
valuation of the securities of other roads owned
by the company is adding to speculative and IN
interest in the property. Since the panic
1907 the market price OF fourteen of the Sc
curities owned by the Union Pacific has increased
in value more than s63000OOo, while other less
active stocks and bonds owned by the company
gate of s75,00.0oO in the market worth of
securities in the treasury of the Hartman road.
The possession of these stocks constitutes the
strongest equity of the Union Pacific The only
stock owned by the Union Pacific which dvi-
dends have been lowered is New York Central
the return upon which a per cent basis means
an annual loss TO the Union Pacific of sl42S97
Against this loss there will be the dividends on
the new stock issued by the Northern Pacific and
the ST. Paul which will bring the Union Pa
cifc's treasury about $4,000 a year The present
price OF Southern Pacific stock represents Union
Pacic's holdings OF Southern Pacific an increase
in value of more than S36.O10.Ooo