Show ADDITION A OF MADE TO STOCKS OF HARRIMAN Floating Capitalization of Union Pacific and Southern Pacific Js is Increased to Pay Enormous Floating Debts Incurred SPHINX OF WALL STREET BREAKS BREARS SILENCE Statement of Financier Shows Expenditure of 1 I. I r v for lot Lines s of pf Salt S lt Lake Cily CHy and Vicinity Vic 4 and and ii in ih California t a New Now York May 9 The Harriman directors today added o flue llie float ing i g capitalization of the Southern Union systems with a pos possibility of more inore Although Wall VaU street had hn 1 been heen fully informed of the thc corning coming announcement the actual news scorned to take t the he stock market t by hy surprise an and 1 a break of r ei eight points in Union Pacific was the first result Statements by hr b President Pr I 12 fl if Ii Har hut hut- riman timan showing the tremendous earning earn earn- Ir InC ing power pow r of f the thc two railroads allayed the Ole sen general ral alarm and the stock stacie market market mar mar- ket letl was wa steadied before be Core the cioe The new net i issues u s are in lii the shape of or of or Southern PacIfic pre pre- preferred lre- lre frred ft to be sold old at par o of ot four per pel cn cent nt convertible con debenture deben deben- debenture ture bonds of or Union Pacific to be ex exchanged exchanged ex- ex changed chanC d for lor or common stock at in I three to fi five years ears To 10 provide pro for this I cOn conversion cOnlon lon of oC n new w common common cornmon com corn mon stock will bo be authorized As A the th er conversion lon will vilI consume about 4 40 0 of this thi the Union Pacific will vIll willbe willbe be he J left ft with about of common common com corn mon stock which it can Issue at will Tulles to Men Jen Owing Owing- to the scandal which attend attend- attended ed cd the he announcement of oC a n 10 per cent dividend on Union Pacific last Jast August Mr ll Han sent stent out notice In lii adVAnce ad- ad ad advance d- d vance today toda that something CI very irn- irn Im Important would be bo donE b by the ho direct direct- ors As soon oon an as th the directors adjourned ho nf newspaper nH men n to rake mice their fata at nt nt- the tho table Jn just t tty by b tho tim b f ar ard J an l marie made r announcement f tip flu stock tik Issue i ue In peron per per- on tl m- m t A- A tI tc 10 cave c out n a at mihl of oC tto 0 Southern PacU c an and of oC Investment held ny by tho Union n Mr llan I Pacific P According to lh the thu- Southern Pacific has floating debts d of or 3 32 n lie He stated that the to tot total to- to tal expenditures nl of nr the Southern Pa- Pa t company which up up to this 1118 time HUH I I have hl not nol been capitalized aggregated I 1 including payments for forthe forthe the Ow following fo purposes Equipment 7 purchase e of ot electric t lines lints In California and around Salt nH LH Laek l City Iu ti new lines lints p purchased i advances ance on oui construction account stocks f d i bonds purchased The fhe company ha haM lias 4 paid pain the government on Central 1 Pacific account and has re redeemed re- re deemed bonds of o the Gals Galver- Gal stOil s- s tOil lout and nd San an Antonio line Among the theother theother other it il items ms h heretofore r not ch charged loC to lo I C capital account was waN the retirement of or short hort time bonds of or the Southern n Pacific company compan two vo years cars nn ago a against which only 25 year ar h bonds Wf were rp sold Other Oilier of or nfl I Bonds of oC the Southern Pacific California to in the extent of d and only onh underlying un un- were vet e retired ru denying bonds bond sold against th m. The Thi company holds treasury bonds to the extent o of and has among its assets stocks valued at i not charged to capital n account count The fht construction advanced l on of or account was wan chiefly for the purpose e completing ro cro miles of now new road Pacific that flint the Southern lie hIs states will show hoW earnings for ni the th present nt I fiscal year yen I of or 4 not net The op- op crating orating expenses s 's will he be There will remain 1 1 of If a a. limit final surplus after paying all char charges ls l's and ii dividends Tho rho Union Pacific will earn a final surplus o of 1 after all char charges ts the Union paid As dividends dl are arc and of the Southern Southern South South- Pacific owns 4 45 per cent to Pacific It will br- br compelled ern take lake about of the tho new Investment in In- In be 7 j per cent which will vIlI a stock company will n need ed The Ihie vestment addi addi- to lo li fro 1 Liona I Profits t on 01 also ma made c a n statement statement state state- Mi Mr Harriman shown by the tho Investments ment of or the th the company He lie 11 says ap I Union Pacific Pacific stock owned b by the Southern Pacific was as worth on May of 4 Union leaving lea leav and anti cost cot of The other profit ing log a which are an made among Investments In Baltimore and Central New York F Fc Fe were worth on Ohio and Santa and cost COlt Mo May 4 4 showing n a loss los of 7 shown hown on al aU invest invest- The total profits E I ments y nt of mf the company compan arc are co O cent e or stated after to today's ays ay's dr IJ had decided meeting that the the dividend directors perio periods S on change form Corm to tock stock Union pacific ic common accord accord- annu l to lO quarterlY quarterlY l dl a today payable Jut Jul 1 rie J I dl nd of oC 2 cent of the books will willbe d h O for the subsequentlY be Southern IM trifle Changes took rn Pacific Union The or of the action to that to th tIe the y with r respect P Pacific Director period d cluing cluing- cha OJ- OJ cOIn common mon stock K twice a year to lag Ing the today ordered a year arid fit of four times dl payment of oCa a I 1 11 the Jul July lle on cent JH In the 3 4 action the that said fait lI Harriman casC of the he so thern US ns that thal of oC the tho at l' l waH waB Co O I awl and hereafter her the Union Pacific wourl be paid di that th the n sM said t harriman 1 company ln had h experienced unu unusual ual dif dif- with broken en rails mUs in iii common with other railroads throughout the c country and It was proposed to bring some action against t the ste Steel l company Crom from rom which the rails were purchased Announcement by hy Mr 11 tr Harriman of the securities held b by the companies compani's may mar be the lh preliminary Jr of ot mi un announcement an an- I of the proposed new hold hold- In lag c company |