New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-10
UNION PACIFIC MELON
IS DENIED BY L0VETT
Proceeds of Southern Pacific
Issue Not To Be Distributed
to Stockholders.
Ss8,0OO,OO0 IS BEING HELD
If Disposed Of in Future No
Increase Will Be Made in
Present Woodstock
Advances.

The rumors that have been current fol-
several weeks regarding the probable dis
position by the Union Pacific Railroad
Company Of the proceeds from the sale OF
sss0O0.co0 Southern Pacific stock were SET
at rest, at least temporarily, yesterday IN
an announc ement by Robert S. Lovett
chairman of the board Of directors, that
there would be no melon and that none
had ever been considered by the boaro
which would increase the present yield on
the companys stock.
Judge Lovett made this announcement
in a printed statement. and before max
ing public its contents he took occasion 10
deny reports that there had been friction
among the directors at the numerous
meetings that nave been held 10 consider
how the company's large surplus should
be handled. His statement is as follows
1.-THE question Of the disposition 10 be
made of the large cash fund realized oy
the Union Pacific Railroad Company from
the proceeds Of the recent sale Of South
ern Pacific stock and possibly OF other
assets Of the company, has received the
earnest and careful attention of the exec
utive committee and of the board Of di-
rectors. Tho conclusion has been arrived
at that existing circumstances make II
inexpedient TO 6eal with this subject at
present.
ITO avoid misunderstanding, however. II
is deemed right TO state that none OF the
various plans which have thus far been
considered and discussed contemplated
any division of surplus, either in cash or
securities. which in its result would have
increased the present yield Of the stock.
The last paragraph was interpreted as
meaning that if there had been any extra
distribution of either cash or securities
there would have been a corresponding re-
duction in the Union Pacific dividend on
the common stock. In other words, the
sum total of the yield would have re-
NAMED the same. director who at
tended yesterdays meeting offered this
explanation:
Judge Lovett's statement means there
will be no melon. In fact, no melon ever
was considered. The directors took up
the question of a distribution only on the
basis that the present income Of the
Union Pacific shareholders was not TO be
increased thereby. If. for instance, dis
tribution had been decided on which
would have amounted to a return of per
cent, the dividend on Union Pacific shares
would have been reduced to per cent. SO
the total income would still be 10 per cent
to the stockholder on his entire holding
This statement was put out at this
time so that people would not be misleo
by any further rumors of a melon. The
purpose is TO prevent any one from specu'
lating or the belief that melon is beine
considered"
The action of Union Pacific stock after
the announcement that there would be ne
melon confirmed the belief that the news
had been partly discounted. The STOCK
has been one of the weak features of the
market during the last few days, bu'
yesterday il closed at 1875 on transac
lions of $3.50 shares. 5s of a point above
Wednesdays closing. Within the last
three months the stock advanced from
1873. to 1924 on semi-official announce
ments that the directors were planning
the distribution of an extra dividend.
Judge Lovett will leave New York this
evening or at the end Of the week, TO be
gone for about a month on an inspec'
ton tour of the Union Pacific system