New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-07
REVIEW OF THE
STOCK MARKET
u. P.'S Distribution of b.
and o. General List
MISUNDERSTANDING Up.

ne CGlCl interest or the gay IN the
stock market centred in The announce
mont by the Union Pacific manage
mcnt of its decision to dispose Of it's
holdings of Baltimore u ohio common
and preferred stock, the major part OF
which had been acquired by the Union
Pacific last summer from the Pcnnsyl-
wanna in exchange for part Of the Union
PaciGc's holdings of Southern Pacific.
Baltimore " Ohio was depressed at
the opening, i'm contrast with the gen
cral list the early trading in when
was active at advancing prices. follow
ing a higher range reported from Lon
don. but the reason for its opposition
TO the markets trend was not apparent
at the outset. although il soon was
rumored that the Union Pacific had
determined TO release its holdings or
the stock.
When the formal statement of the
Union Pacifcs executive committee
came. confirming the reports and add
ing that il was the intention 10 lower
the dividend rate from 10 to per cent
Union Pacific declined. but ii became
strong later on, closing the day with
net gain Of 2ss points on the realiza-
ton that the purposed distribution
would be almost exactly equivalent to
the per cent which the stockholders
were to lose in the annual dividend
rate.
The preferred on sales Of only Few
hundred shares, declined pa points
although the position Of the preferred
stock holders will not he changed 10y
the distribution about 10 be made to
the common stock holders. The posi-
ton Of the convertible As, on the other
hand. is directly affected by the action
taken in turning over part of the as
sets to the common share holders,
which will lower the market value OF
the common stock, probably, TO around
1oJ. The convertiblos were heavily
sold, falling from 93i4 at the opening
TO OF and closing at 9124, trifle above
the conversion level, with 1884 as the
final price for the common. and it is
proba BILE that the conversion privilege
will be very largely exercised, The
Baltimore q Ohio issues were depressed
throughout the session closing at con-
siderable net declines, as was not un-
natural in view Of the imminent re
leasing of block Of many millions of
its stock of both classes.
The early weakness of Baltimore
Ohio affected the general list before
the close Of the first hour, and there
after for most Of the session dulness
prevailed. although prices were fairly
well maintained, and in the last hour
activity again developed, final prices
showing general net gains, which were
in the main fractional, but which ran
to . points or more in the case of va
rious specialties. London was active
in this market, buying perhaps 10000
shares on balance.
There was little news Of sort TO
have market influence, outside Of the
Union Pacifc's action, which. although
unexpected al lnlS time, was ItcOS-
nized as the carrying out in part of
policy long ago announced. The Fed
eral Sugar Refining Company passed
it's dividend on the common, but the
incident had no effect on the stock
market, especially as the issues Of this
corporation were removed from the
Stock Exchange list some time ago be-
cause of the reluctance Of the manage
ment to make a statement of earnings.
An importation of 100000 gold from
Canada was announced. the movement
representing the return Of part Of the
large amount of the metal sent to the
Dominion few months ago, much Of
which may be expected TO find its way
10 this centre, now that the Canadian
crops have been moved. Cali money
was easy, the highest rate being i per
cent and most of the days business
being done at 3a4. Foreign exchange
advanced sharply. although the rate is
still well under the gold export level.
which may be reached before long if
the current condition Of money market