The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-12-02
HE SUN, SATURDAY, DECEMBER 2, 1899.
FINANCIAL AND COMMERCIAL.
FRIpAY. Dec. 1.

40 much that Ia misleading has been printed
about the reported establishment OF new rela-
tions between the Pennsylvania and the Balti-
more and Ohio railroads, that 1t seems desir-
able TO state the exact facts about the matter.
Within tho last week or ton days the president
OF tho Pennsylvania Railroad Company. with
the knowledge OF the principal interests in tho
Baltimore and Ohio railroad. has bought in
the open market for himself and immediate
business associates n large block OF Baltimore
and Ohio stock. This purchase does not give
the Pennsylvania Railroad Company control
OF the Baltimore and Ohio rond In fact
so far as known tho Pennsylvania Railroad
Company has no direct interest In the
transaction. Some OF tho managers OF that
corporation however believed IL would be good
business for them to mako a substantial ALL
anco with the controlling interests in tho Bal
tlmore and Ohio system and they have acted
upon that Judgment.
The result OF the operation Is that the mana
gers OF tho,two systems are brought into the
close relations OF a common interest and the
general trunk line situation is obviously i'm
proved. Regarding tho point that the Baltl-
moro and Ohi, directory Ia elected by voting
trustees, IL may be said that at lenst three OF
tho Ave trustees are known TO DO favorable to
the admission OF Pennsylvania element
into the board. and doubtless the entire trust
will acauiesco I'm any arrangement made for
the development OF the property and for It's
profitable management As n matter OF fact
all voting trusts are OF so flimsy a character
that no ono would think OF enforcing their
provisions In opposition TO the wishes OF a
large and influential body OF stockholders.
Enough h,ls beon said to show that ths trans
action referred to, though informal. is OF great
Importance to both tho Pennsylvania and the
Baltimore and Ohio companies and also TO the
other trunk lines. This statement OF facts also
shows that the various donials Of reports OF an
alliance between the two companies have been
warranted either because those who have
made them or those who have ELECTED them
have not known what they were talking about
To-day's stock market was quiet. profess
siona and In the main embarrassing The ad-
vance In the Bank OF Rngland's rate OF discount
yesterday had apparently been largely
discounted abroad. at least speculatively.
for London bought about fifteen thou
sand shares OF various stocks on bal
ance. The advance on tho Bank
rate was largely to conform TO the Street rate.
and It may have tho desirable effect OF attract
ing money to London from the interior and
also from tho Continent. Tho local money
market WA easy. partly on the extension Of
the time within which the Government will
redeem bonds. and also because OF expectations
that a further improvement in the position
OF the banks will DO shown In Tomorrow
statement.
The course OF prices on the Stock Exchange
was irregular. Brooklyn Rapid Transit. Sugar
Refining. Baltimore and Ohio preferred and
the Tobacco stocks were exceptionally heavy.
The Union and Northern Pacific stocks. United
States Leather common. Chesapeake and Ohio.
Colorado Fuel Federal Steel and Tennessee
Coal and Iron were the stocks that showed
noteworthy strength. New York Central sold
the eI-rights to subscribe to Is per cent OF new
stock at par. The closing was generally heavy.
Purchases OF bonds by tho Sub-Treasury were
1924. 10. making total payments on this 40
count since Nov. 10. o.se2.Sl9.