The Washington herald., 1913-09-17

in the past. that earnings turned back
into the property may eventually be dis
tributed or capitalized. the advocates OF
a mere savings bank rate of return on
railroad capital will add new and ultra
modern weapon to their now scanty arse
nal But would any one really care what
specific theory Of accounting went with
the distribution? The only facts that
count in the general estimate of this case
are that the company has a larger fund
of cash on hand than it needs at once,
with the choice OF distributing this among
its stockholders, or of reducing its future
capitalization by applying the money to
construction purposes.
1t would do the directors of the Union
Pacific less than justice TO suppose that.
II they have any idea OF making an extra
distribution at all, they have failed to
ask themselves whether the company can
AFFORD 10 make it. This question Is not
of finance, nor Of morals; hardly even Of
ethics. 1t is a question Of the broadest
diplomacy in railroad management, and
of better diplomacy surely, railroad man
agement stands in need.
The real opportunity for the Union Pa
cific directors at this time is not that of
fattening its stockholders bank accounts,
but of setting all other railroad directors
an example of wholesome moderation,
anu VI ASbAnS ~ sAN~
thousands of citizens Of all sorts and con-
ditions who regard railroad flnanciers as
fit only to be distrusted. II they steer the
latter course. their stockholders will have
nothing to regret, for the beneht fore
gone will return unto them more surely
and more effectively than bread on the
waters ever did.
stock Market.
nI
erately active yesterday. The aggregate
sales totaled 46O 900 shares.
Immediately after the opening there
was a sagging trend, the continuation OF
the weakness displayed on Monday. No
notice had been given by Union Pacific
interests regarding the supposed melon.
Bears were inclined to take a chance and
I bulls were after profits.
The result was a drop Of half a point
Immediately following the opening.
Then the market turned decidedly strong,
and il was a boost, boost; reports of a big
distribution to Union Pacific shareholders
coming out and the bulls run the shorts
in, especially in Union Pacific, Reading,
and Steel. 1t was just a case of boosting,
Just a case of every trader following the
tape and taking profits gradually to a
point and a half raise in the leaders.
Then for the third time there was a
change of front. The market reversed
and went back TO a closing on most of the
stock to a slight net betterment for the
day.
To get it or not-the whole tone of the
session. Union Pacific held IA gain;
Steel. 3-S; Southern Pacific, IA; Canadian
Pacific, 3 points advance; Copper very
strong and higher. Reading at the top
was IA points better than on Monday,
but only held SIS net gain.
New York Central easier; New Haven,
l-2 of; Petroleum shares firmer.
Program Carried Out.
The 400 odd visiting delegates TO the
Richmond convention of the American
Institute of Banking, many OF them with
their wives, enjoyed a program of hos
pitality mapped out in advance by the
local chapter of the organization Chair
man Spade, of the committe in charge of
the entertainment of the guests. was
everywhere. 1t was a success, il one
may Judge from the remarks of the
crowd leaving last night for Richmond.
Bond Offering.
White, Weld & Co.. Kissel, Kinnicutt
& Co. and Harris Forbes & Co. are Of
fering, at IS IL ana interest. yielding 4. Is
per cent Sll,s0o.0 900 fifty-year first mort
gage 1-2 per cent gold bonds of 1911 of
the Cleveland Short Line Railway Com
pany. These bonds are guaranteed, both
principal and interest, by the Lake Shore
and Michigan Southern Railway Com
pany.