The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-12-01

new Hork central lWaoasn pt.......... 3
TUESDAY, Nov. 80.
Until tho last hour of business to-day the
stock market was extremely sluggish. There
was further buying through commission houses,
but 1t was not of sufficient volume to stimulate
tho speculative element to activity. That ele-
mont was rather inclined to take the view that
as prices had advanced two or three points during
the last few days they were entitled to q reaction.
At the same time professional traders did not
seem to DO especially confident Of tho correct
ness of this view, for they sold stocks very gin.
gerly. The market gradually hardened as
additional railway traffic statements came to
hand. Tho more important Of these was that of
the Pennsylvania Railroad. the publication of
which was followed by an advance of 2ta
points in tho stock. and that Of the c., b. and
Quincy, which for tho four months ending Oct.
81 shows that tho company has earned 4 o
cent. upon its stock during tho first third of its
fiscal year. Tho excellent showing of the Penn
sylvania Railroad stimulated buying Of New
York Central and. on . smaller scale. tho
shares Of some Of the other trunk lines. The
fnal movement of prices was caused by the
publication locally of an authoritative state
ment regarding the execution of the re-
funding plan of the Rock Island Company.
The details of tho transaction are printed in
another column. Tho refunding operation ap.
pears to be in every respect advantageous to
the company. particularly the price obtained
for the new bonds. The Granger stocks were
obviously q prominent feature of the market.
Sugar Refining continued to hold the first place
in respect to activity, and scored a further net
advance Of liz y cent. OF the less active shares
Consolidated Gas, Metropolitan Railway. North
western. Omaha and San Francisco first pre-
ferred made noteworthy progress toward higher
prices.
The most interesting, II not tho most i'm
portant, news Of the day appeared to be ignored,
at least SO far as any reelection of it was to be-
found In the stock market. Advices from
Washington published this morning indicate
that the Government is preparing to break faith
a second time with the Union Pacific Reorgani-
cation Committed by taking the necessary steps
to qualify as a bidder at the adjourned sale Of
the Kansas Pacific Railroad on Dec. IS. 1t will
be remembered that the Reorganization Com
mittce entered into a contract with the Govern
ment to protect its interest at the sales In fore
closure of all of the socalled subsidized por-
lions of the Union Pacific system. The COM
mittee was subsequently compelled by the
Government, in advance of the sale, to raise
its guaranteed bid on the Union Pacific main
line $13, 900. 900. or to the full amount of tho
Government claim. Between individuals or
corporations this operation would unquestiona-
bly, be characterized in any court to which the
facts might be submitted as a breach of contract.
Now that the sale of the subsidized portion of
the Kansas Pacific line is being approached
some one at Washington Is trying q new game
on the Reorganization Committee. In this case
the Government plainly does not hold the
whip hand. Tho subsidized portion consists of
only 304 miles running west from Kansas City,
and the western end IL marked not by a termi-
nus or even q station, but simply by a mile post.
The extensive terminal facilities at Kansas City
have in the main been acquired since the Gov.
ernment lien was executed. The Reorganiza.
ton Committee Is in absolute control of the
line from the 394th milestone to Denver
and also tho lateral lines and branches,
some Of which to an extent parallel the
subsidized portion. Trustworthy expert es.
Inmates are that the subsidized portions could
be duplicated for $25. 900 per mile. but all OF IL
would not have to be duplicated to connect the
unsubsldized western line with Kansas City. In
the circumstances the Reorganization Commit
tee does not feel justified in paying more for the
subsidized line than 1t has already agreed with
&he Government to bid for 1t.
1t appears. however. that In default OF any
other method Of trying to make the Reorganiza.
ton Committee exceed the terms OF its contract
the Government has decided to break the con.
tract by appearing as q bidder itself. Should II
ouhClC thib Y uiliutioh tho lIlOEhCy'bbH
eral will find that the Reorganization Com.
mittee will take advantage OF his abroga,
ton OF an express stipulation and will do.
cline to mako any bid whatever. Tho upshot OF
the present policy OF the Government Will be
that either the Government will have to GO into
the railroad business with less than 400 miles
of road. ono end OF II terminating at a milestone
on the plain. or else Its bad faith may encourage
some gang Of railway spectators. like that which
tried to interfere with the Union Pacific sale
TO secure the road for the purposes OF black,
mail. The situation is not an agreeable one. moi
that 1t 10 especially serious in its bearing upon
tho ultimate reorganization OF the Union
Pacific system, but because 1t shows that q
probable candidate for a Supreme Court Judge
ship Ia susceptible to Populistic clamor to the
extent that he is willing to Introduce prac
tees that are regarded as reprehensibl,
the world over in transacting the business Of
the Government. Another phase OF the situa
ton that is calculated TO alarm not only every
railway manager. but the holders OF railway
socuritieo generally, is the prospect that tn,
failure of the, Government bluff may land tn,
United stateE in the railroad business. OIL