New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-12
DIRECTORS FIX PRICE
Of So. PACIFIC STOCK
Terms of Subscription Given
the Shareholders of Union
Pacific Company.
SEP A SHARE ANNOUNCED
New Underwriting Syndicate,
Including 500 Bankers, To Be
Formed, with Kuhn, Loeb
& Co. at Head.

At a 7
road Company yesterday the price of 90
was announced at which stockholders
NAV subscribe to the certificates of in
terest in sS3,576 shares Of Southern Pacific
stock by the Central Trust Company Of
New York as trustee.
The following statement was issued
after the meeting:
AT its meeting to-day the board Of
directors set the subscription price to
stockholders for certificates OF interest
in Southern Pacific stock al s92 per share.
which includes the dividends accumulated
on the stock since January l, 1913, The
right of subscription by stockholders will
terminate on September next. at which
tine the payment is either to be made in
fun or at the option of the stakeholder,
$9j per share ana the balance. with per
cent interest. on or at any time before
Sep,ember .. 1914.
THE board of directors further declared
the regular quarterly dividend Of 2i5 per
cent on the common stock Of the com
many. payable on October l to stockhold
ers Of record on September ."
Soon after the announcement was made,
Otto H. Kahn, Of the Union Pacific board
and Kuhn. Loeb & Co, said that an
underwriting syndicate would be formed
10 guarantee the success OF the offering,
which would include number Of Euro
pean bankers. as was provided by the
syndicate formed TO support the offering
under the first plan. including about 600
bankers. which was disapproved by the
California Railroad Commission. Kuhn.
Loeb & Co will head the new syndicate,
which will probably comprise more than
800 bankers and banking firms. Although
the price at which the syndicate will
purchase the stock was not announced, 1t
was inferred TO be s..
Following the announcement the Stock
Exchange admitted to dealings the Union
Pacific rights TO subscribe for Southern
Pacific stock under plan OF July II and
August II. 1913 providing that stockhold-
ers Of record, August :, 1918, are given
the right to subscribe 20 certificates OF
interest I'm SS3.576 shares of the capital
stock of the Southern Pacific Company
10 the extent OF q per cent of their hold
ings. The holder Of full paid certih-
cate may at any time prior to January /,
1916 by presenting the same 10 the
trustee. receive the number Of shares OF
Southern Pacific stock represented there
BY. together with the dividends beginning
with that of April l. 1919. but only on the
EXPRESS condition that he make an afii-
davit showing that he does not own any
shares of the capital stock of the Union
Pacific Railroad.
e. he "a
interest OF Southern Pacific is about what
was expected, as II was reported last
week that the directors at their meeting
would FIX the price at the closing hgure
Of Southern Pacific stock on the day be-
fore The closing price Oh Saturday was
s2ia therefore the forecast proved TO be
unfortunately correct. The figure Of ~
is practically equivalent to Offering South
crn Pacific al a fraction above -. as the
certificates cover two dividends Of " per
cent each. and another accruing which
will be PAYABLE on October ]. The Union
Pacific officials made no statement in re-
gard to the proposed disposition OF me
proceeds Of the sale of Southern Pacific
stock
Southern Pacific stock broke about
point after the subscription price was an
nounced. and then rallied 10 its former
level Later II declined again about hair
= point. at which level IL held firm on
what was said to be banking support. on
the curb the Southern Pacific certificates
Of interest declined from 94ss 10 1874
while the rights to subscribe 10 the sso.-
10000 Offering eased of about quarter
Of a point. The difference of about two
points between the capital stock listed
on the exchange and the interest certih-
Gates traded in on the curb is the differ
ence between the value Of the old free
stock. which may be bought and sold by
any one. and the qualified stock, which
NAV not be bought and sold by any one.
Stockholders who have the right to buy
the certificates will secure them at price
10 Weld about $50 per cent, and there Is
also the additional advantage of holding
a G per cent dividend-paying security at
figure : 10 points lower than other
stocks Of its class.
The first price, which was fixed at $780,
was equivalent or the date Of the sub
scription TO 1857 per cent and accrued
dividends, and the offering was made SUD-
1ect 20 approval by the court and the
California Railroad Commission to botn
Union and Southern Pacific stockholders.
But this plan was denied by the commits