New-York tribune., 1909-06-24
FINANCIAL AFFAIRS
STOCK VALUES UP.
Union Pacific Shares Features
Money Easy-SterIing Strong.


fined in great part TO the operations in the pre-
ferred and common shares of the Union Paclhc
Railroad a sharp advance in the preferred.
which rule is an inactive issue. attracting
attention to Street rumors that the security
would be retired, that a Union Pacific securities
holding company soon would be formed and that
the common stock would be advanced TO a
higher dividend level at the next dividend Pc
Rod. While there was no confirmation OF the
various reports, all of which had been heard in
the Street at other times IN the past, the move
ment in the stocks, especially the preferred, en-
couraged the idea in highly optimistic and the
orizing quarters that something more than mere
speculation behind the rising tendency
Buying of the Hartman stocks failed to induce
activity in the general list but prices as a rule
were stronger and higher with substantial net
gains at the close, notwithstanding an early
afternoon reaction based on the failure Of the
public TO respond TO the aggressive transactions
in the Union Pacific shares. In the last fifteen
minutes OF trading active covering Of shorts
was responsible for resumption of the upward
movement, last prices in the greater number Of
issues being at. the best of the day. with the
chief strength in the metal stocks. St Paul, Erie
Great Northern Missouri Pacific. Reading, Rock
Island Southern Pacific, Southern Railway,
United States Steel and New York Central The
last named stock has been well bought in re-
cent days, and from the character Of the opera
tions II is thought in certain Street circles
that important developments affecting the
pany are pending, though little confidence is
placed in the idea that control Of the company
Will in the future pass TO Hartman hands
Earnings Of the road make most favorable COM
parisons with other years and are moving in the
direction that means ultimately better dividends.
1t is not likely, however, that the directors Will
change the rate until the extraordinary expendi-
lures on the property have been completed
Total sales Of stocks were under the recent
average and represented decided absence of
commission house buying Traders appear to
ha1i hat liu11id dati boC r,1Y1i it's
There is no reason to doubt the ability of the
Union Pacific to pay larger dividends its
common stock in the future, and the report
therefore that the preferred stock will be
tired and the holders Of the common receive Il
per cent year is Of particular interest in view
of the tremendous financial strength of the
pany and the indications that the road will
show for the current fiscal year upward Of 20
per cent earned on its junior security Recent
estimates placed the company's net surplus for
the twelve months ending June 80 at more than
,O0O and the fixed charges at 81, 600
which would leave a balance after preferred
dividends Of approximately s40000,000 equiva-
lent to nearly 2Oh per cent the S19s 299 700
stock outstanding. On this basis the
surplus after dividends on the latter stock would
amount to more than $50, 600 900, a record wholly
unusual In the history Of American railroads
The Union Pacific Companys position has been
materially strengthened in the last twelve
months from increased earnings and from the
appreciation that has taken place in the market
valuo OF the securities OF other roads in its
treasury, total shares owned amounting to 2,475,-
lS1, on which the increase IN market price as
compared with this time in 1908 amounts to up
ward Of s70,000.O0O. and on which the Union Pa
cifc receives total annual income of s1424S,-
6sS- The latter is equal to a little more
than per cent on the common stock. When
the actual position of the Union Pacific com
pany is anayzed II will be seen that even with
the price Of the common selling above 100 the
issue is still an attractive investment nurchase
something that can be said of only few other
notably Baltimore & Ohio, United States Steel
preferred and Atchison Baltimore & Ohio in
the month cf May showed an increase in gross
earnings Of sS3s,500 and in net an increase of
s725,5O0. and IT is not unlikely that the company
VIII report for the year per cent on it's common
stock and 10 per cent in the following year
Money was in light demand yesterday while
sterling exchange again reflected an active in
quiry for remittance. with the probability of
gold exports TO Europe with any decline in Ber-
lin and Paris rates on London. Berlin evidently
would like to secure the metal in this market
French capital. while money conditions at Len
don do not encourage shipments of gold to that
centre Local bankers doubtless will endeavor
TO discourage outward movement at this
time, but the great scarcity OF commercial ex-
change may force exports unless foreign bank
ers prefer 10 leave all their credits here a sue-
geston Of which is found IN the larger offerings
| Of foreign money in this market Gold exports
| 70 Argentina yesterday amounted to 81 600 go
for London account