New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-07
Executive Committee Also
Recommends a Cut OF
Dividend to 8.
OWNERS OF COMMON
ALONE TO GET RIGHTS
With Three Dollars in Cash. This
Will Mean a Bonus of Over
1917 Per Cent.

The executive committee OF the Union
Pacific Railroad Company yesterday sur
prised the financial district by making
public the announcement concerning tee
disposition of It's holdings OF Baltimore
e. Ohio stock and part Of the cash rear
lied from the sale OF Southern Pacihc
stock ordered by the Supreme Court IN
its decree dvorcng the two Hartman
properties
At a meeting tomorrow the Union Pa
chc directors will be asked by the excel
tive committee TO approve its recon
mendation that the ss2.0S7. 800 Baltimore &
Ohio stock owned by the company be dis
triouted among the common stock holders
as an extra dividend. together with -
share in cash To equalize the yield on
the Union Pacific stock, however II VIII
also be recommended that the annual
dividend rate shall be reduced from 10 per
cent to s per cent
In view of the recent retirement by
members Of ]. +. Morgan & co. from
some thirty Girectorates and the previous
announcement by the American Telephone
and Telegraph Company Of it's intention
many in the financial district suggested
that possibly the UnOn Pacific manage
ment, by disposing OF its Baltimore &c
Ohio shares, is also DESTROYS Of meeting
the administrations view on concentra-
ton OF control. The Union Pacific, IN adj
dition 10 its holdings in the Baltimore &
Ohio. also owns s17,s57.OOO stock Of TIE
New York Central. a parallel and com
petng line. Any objection now to this
double ownership will be eliminated.
Union Pacific directors declared that
aside from its investment value t..ere was
no especial advantage in holding the Bal
tmore q Ohio stock and that the dispo-
siton will be made i'm Difference to public
sentiment Another reason for the dis
triOution is that il will permit the Union
Pacific to reduce it's own dividend rate
without loss Of income to the stockhold-
ers.
An Extra Dividend of 80 Per Cent.
The total of the extra distribution to
Union Pacific stockholders is equivalent
to approximately 32.S5 peg cent OH the
SIG. 635. 400 common stock outstanding ar
rived al on the basis of a market value
of 90 for Baltimore & Ohio common and
50 for the preferred. The cash dstribu-
ton amounts to IS. i99,0e2 The statement
issued yesterday by Robert S Lovett,
chairman of the Union Pacific executive
committee. concerning the bonus TO stock
holders follows:
The executive committee to-day de-
cided to recommend TO the board OF d.
rectors, which meets on Thursday. TO
! distribute among the holders of the COM
mon stock OF the Union Pacific Railroad
| Company the Baltimore G. Ohio stock
owned by il. together with 81 share in
1 cash II is proposed to distribute to
the holder of each share of Union PACING
common sl2 par value in Baltimore d
Ohio preferred. now yielding. at per cent
/ IS cents: and So 80 par value I'm Baltimore
! & Ohio common. now yielding at per
cent, 81 50 and s. i'm cash, say at per
| cent per annum, IS cents, or total
| of s20l.
The executive committee also recon-
mends that if this is carried iato effect
/ the regular annual dividend be corre-
! spondingly reduced-that is. from 10 per
cent TO per cent per annum.'
| Holders of Preferred Stock May Fight.
Because the preferred stockholders are
not included IN the extra distributioh'
some opposition TO the proposed plan Is
| expected from this source. One argument
I ar1fts Il.