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Show IDMDEND WILL IT 1P1 THE CAPITAL . - Little. Apprehension Felt Regarding Re-garding Possible Suit Against U. P. NEW" YORK, June 4. In connec-. tion with the dispatch from Salt Lake City with regard to the extra dividend of the Union Pacific Railroad company, those familiar with the situation am at a loss to understand on what grounds the state of Utah will be able to bring action against the company to prevent the proposed distribution. Obviously the Commercial club traffic traf-fic bureau is laboring' under the customary cus-tomary misapprehension, which has been entertained by man v. that such a distribution will impair the company's rapital assets and tliat such an outlay is also being made from the proceeds of a bond issue, etc. It will be recalled that .John G. Mil-burn, Mil-burn, counsel for the company, recentlv, in arguing the case of preferred stockholders stock-holders against the company before Just ice Page of the supreme court of New York, stated that the company had an actual surplus in its treasury of more than $lol.,000,000, and that" the payment of the extra dividend would in no way impair the company's capital capi-tal assets. Jt is argued that, as the company has this amount of actual surplus,' sur-plus,' it makes no difference to state or civic bodies or others whether it sees fit to retain the same or distribute a part of it to stockholders, so long as such distribution does not impair the capital assets, credit or good will of the organization. .Li t tie apprehension is enterta ined in well-informed circles with regard to the outcome of any move that may be made on the part of the state of Utah. "VT. S. "McCarthy, secretary of the Commercial club traffic bureau, said last night that the procedure against the Union Pacific would probably be a petition for a restraining order to enjoin the company from making the proposed distribution ou the ground that such a' distribution exceeded the rights u nder the charter of the company com-pany as granted by the state of Utah. He said that the charter of the Union Pacific did not authorize any . such distribution, and he doubted that any charter of any railroad in any state granted any such powers. Governor William Spry said that, he had received the request of the traffic traf-fic bureau, but that he had not yet, had time to consider it. He plans to take the question up with the attorney general today. Until he has given it his careful consideration, he aaid, he would decline, to comment on the request. |