New-York tribune., 1909-07-21
SELLS IT'S ATCHISON
Union Pacific Disposes of S1o,000,-
900 Preferred Bought IN 1906.

The T-nion Pacific Railroad Company, II oecaiI7
known Yesterday had sold its holdings OF Atchisoi
Toneka E Santa Fe preferred stock. amounting 10
$40 OooOO0 to Kuhn. Loeb & Co. from wnon II puI-
chased II A few years ago Wall street was con
siderably mystifed at the action OF the Cn.v" -
Pacific in parting with this stock, In view OF tie
fact that Mr. Hartman was authority ror
statement that II was bought for Investment
At the nrice at which 1t is being quoted at pres
ent there could not have been much pronI "a IN ,n7 ~
transaction the stock having cost the Union 49,
103 a5 a share. The price at wh1cn IL was
to Kuhn. Loeb & Co. not revealed. out II Is
,,dnrs+ood that If was rot much above that figure
Two hundred shares were sold on the STOCK Elk
change yesterday at 1O5.
One of the explanations advanced anu ue t
which seemed to find the most favor IN tne ot e''
was that 1t was due to the desire Of MI hartman
to dvest the road OF the securities OF otner [o%uS
which are parallel and competing, IN Vie" oL ti0
suit brought by the government IN WHICH 80"
holding of such securities is made one VI 'io '''@
points at issue
In it's suit the government seeks to dissolve the
merger of the Union Pacific and Southern Paclnc
companies. it being alleged that the two roaos aIe
violating the Sherman antitrust law IN IhaI 'i7'
formed a combination in restraint or trane dIio"e
parallel and competing lines. 1t was pointed OUT
In tbis connection that the Union Pachcs interest
in Southern Pacific had been decreased recently py
tie sale of its holdings of Southern Paclnc con
vertfbe bonds. amounting to S3l,5OOVc ana tha' '7
sale of it's Atchison stock was a further step IN
law.
Another explanation offered was that the Union
Pacific had decided to dispose Of such Of its in
vestment holdings were not absolutely esseh'iai
to the maintenance Of friendly relations between II
and other roads. It also thought that the road
desired to raise additional money and took thls
method of doing so rather than float any new Sc
curties Of its own With the proceeds OF the
Southern Pacific convertible bond sale still IN It's
treasury, those in opposition to this view pointed
out. it could not be very hard UP for ready cash.
1t may be, however, that the company IS accumu-
latins money for some purpose OF which the street
knows nothing
The 100000 of AtchsOn preferred stock Whlcn
the Union Pacific has just sold stood in the name
Of the Oregon Short Line and was purchased IN
1906 at the same time that the company acquired
$39 $4,000 Baltimore & Ohio S2sOOo,ooO Illinois Cen
traI, S14235OO0 New York Central and smaller
amounts of Chicago & Northwestern and St Paul
stocks.
II was said yesterday. although not officially
that Kuhn. Loeb & Co. had already disposed OF
the stock privately to various banking institutions
trust companies and insurance concerns, which Will
hold II for investment place it among their
clients for that purpose, and that it unlikely
therefore, that any considerable amount Of the
$l0CO0OO0 stock would find its way into the open
market
The old rumor Of the Pennsylvania Railroad
being after the Atchison also revived, and It
was reported in some quarters that the stock had
been sold TO that road. While Kuhn. Loeb & CO.
are the bankers for the Pennsylvania and the lat
ters acquisition Of tho AtchisOn would make a
magnificent transcOnunental line. the report was
not credited In well informed quarters