Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-02-23

According to these figures, Atchison
! IS cheapest on basis of earnings, but
| from the standpoint of dividend yield,
Rock Island is cheapest, Each road,
however. Is operating under entirely
| different conditions and it is impossible
to judge values only on these grounds.
Union Pacific.
For several decades Union Pacific has
exerted a powerful influence upon rail-
reading in the Central Western area.
After two reorganizations In the 1905
1t took new lease on life and began
to build up its main property, which
handled long-haul business between
| Ogden and Omaha Union Pacific
| expanded from Ogden into the Pacific
Northwest, then into Los Angeles, and
finally bought working control of
| Southern Pacific. Millions were spent
| IN improving the properties, and mean
while Union tried to obtain control
| of Northern Pacific, which resulted in
the famous corner of 1901 and de-
feat for Union. The company finally
| disposed of its holdings at a ire
| mendouS profit, however, and because
of the funds realized from this OPP
Grafton Union Pacific today owns large
blocks of stock in B. 81 O., Chicago
& Alton, Illinois Central. Chicago
Northwestern and New York Central.
Since about 40 per cent of its income
is from railroad securities. 1t is con-
| sidered by many as good railroad
| investment trust The dividend yield
! at present prices is low, but earnings
have been gradually increasing for
| years Some believe there is posi-
bility of segregation of the company's
! investment holdings in the future.
Southern Pacific.
Southern Pacific, separated from
! Union Pacific control in 1912 OPP
crates from Ogden to San Francisco.
north to Portland and South to Los
Angeles and east to ew orleans. From
| there company boats run TO New York.
The company's business is we'll diversi-
| fled because of the varied industries
in the country through which it OPP
crates. Increasing industrialization of
| its territory should increase freight
revenue in the future. While freight
traffic has held up well in recent years
| passenger business has suffered more
| than most roads because good roads
| and favorable climate in which 1t OPP
| crates permits greater use of automo-
| biles and buses. Southern Pacific has
kept its dividend at per cent for the
past 20 years and has reinvested earn
ings in property. The greater part of
this program has now been completed.
| The company has extensive interests In
| lumber, land. coal, oil and public util-
| ity plants, which add a certain Specu-
| lative element to the stock.
Atchison.
Atchison operates into the Pacific
| Southwest and more recently bought
properties running down into the West
| Texas oil fields and Mexico. For years
many of the companys stockholders
were restless because of the ultra con-
sentative dividend pursued while the
\ company was blowing earnings back
into the property.
But now with its business from wheat,
corn cotton, fruit and oil developing
rapidly stockholders are receiving large
returns. Atchison still seems to be
rather conservative in the matter OF
dividends, but the price of the stock
seems already to have discounted some
what the possibility of higher return
in the future.
Rock Island.
Chicago, Rock Island and Pacific,
IS per cent of whose stock Is owned by
Frisco" has made -apid strides in
recent years. During the past three
years good conditions in Winter wheat
corn and other agricultural products,
and the discovery of oil in Oklahoma
and West Texas have done much to
bring earnings up to a higher level
In March, 1927, the stock was put on
per cent dividend, year later raised
to per cent and recently to per cent
Since the capital structure Of the road
is somewhat overbalanced with larger
proportion of bonds than stocks, stock
refinancing may be done to better bal
ance the company's capital set up.
Every railroad REQUIRES individual ex-
animation in order to determine the
desirability of its securities. Recent ex-
perience has shown that one should not
look to railroad stocks for immediate
appreciation, but only for long pull in
vestment possibilities.
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