The sun., 1900-12-16

SATURDAY. Dsc. "A

~ IL o question whether Wall street In
the sense Of the speculative community
| and Investors both here and abroad hav"
as yet fully teallyed the fst.feaohins and bene-
hoial influence ~ the transfer this w@ek of
the control NJ the prnnaylvania Coal Com
pany IN bankers who are acting. ~ they have
for many years past. In the Interests OF TIE
anthracite and trunk line ,ifrations. Ever
since tho large owners ~ the shares ~ the
virous hnthr cite cod crrylns cofnranle'
began 20 establish harmonious trade rela-
lions by what might he termed an interchange
or perhaps better atill by an interlocking
~ ownership by purchasing large interests
IN each others properties the anthracite
industry has shown steady Improvement
More recently tho impression has prevailed.
In consequence II this community of own"f-
ship. that the industry was In very satisfao-
tory condition That, however, has not been
the csso Not oulv has the Pennsylvania
Coal Company. with its strong independent
policy and It's partly executed threat to build
n rairond OF its own 10 tidewater, been dis
turbina factor. but tho exigencies Of the Erie
Railway. which handles the bulk Of tho Penn
sylvania Coal Company's tonnage. have been
q source OF socitude For the reason last
mentioned the relations Of the Erie system
to the other trunk lines have not been all
that could have been desired
The transfer OF the control OF the Penn
sylvania Coal Company will secure TO the
Eric Railroad the tonnage Of the coal COM
pany. practically upon ts own terms IL
will also control the channels through which
that tonnage Is brought to its main line. This
change In conditions obviously strengthens
that company and with other developments
that are pending. will place the Erie company
in a position to resist tho efforts OF It's patrons
generally to secure lower rates than they are
entitled to Enough has been said to indicate
that the Erie company will hereafter enjoy
q more envfable position among the trunk
lines than heretofore and. what II equally
important. its credit will be greatly improved.
1t 10 obvious also that all OF the anthracite
coal carrying roads and trunk lines will be
benefited by the Increasing strength OF what
has been the weakest member in both groups.
Because OF tho long standing and large
interest OF London In Erie securities the effect
Of these Developments abroad will doubtless
be very much greater than the ordinary OBJ
server OF corporation and financial affairs
In this country has any conception Of. The
trunk limo situation is also improved by the
evidence furnished by the election OF tho
President OF the Great Northern Railway
Company as director OF the Erie. OF the
increasing interest OF that skllful and Ak
perienced railway operator In the so-called
trunk line territory. Tho results OF his prao-
tical knowledge Of railroad operation are
already being shown In the Baltimore and
Ohio system and the Introduction OF the same
methods that have contributed to the success
Of the Great Northern Railway will undoubt-
edly be followed In the case Of the Erie Rail-
way by traffic showings that will reward
Investors In its securities for their patience
In holding on TO them.
Tho events OF the week naturally suggest
q bricf retrospect Of the growth OF the trans
portation industry Of this country from the
time OF the West Shore deal" fifteen years
ago. Within that period there has been a
steady tendency toward combination. hav-
ng for its end the minimizing OF friction and
the Introduction OF economies In handling
the enormous traf,o Of the country. At
times progress In this direction has been
interrupted by reorganiLations which have
resulted In placing some Of the largest sys-
tens in the country upon more substantial
financial basis than ever before. and at tho
same time the opportunity has been I'M
proved to better their physical condition and
build up new standards Of efficiency and
scientific methods Of conducting business.
In this last respect the President Of tho
Great Northern Railway. II will be conceded.
has been preeminently the leader He has
made railway accounting mean something
TO his opsr ating department and has utilized
1t 70 detect the weak spots In railway manage
mcnt. so that remedies could be applied and
evils corrected. Within the perlc referred
70. railway managers have learned that the
chief OBJ cot In running a transportation
property 10 not to get business At any cost
or at any rate. but to handle the traf1o n1tur-
ally belongi ing to the line in the most economi-
cal manner. In consequence the great army
OF freight solicitors has been materially re-
duoed and In time it will probably be entirely
wiped out Of existence. This means less cost
Of getting business and less cutting Of rates.
Still another important development 10
the Improvement that has been taking place
In railway accounting. II Is no longer pos
sible for unscrupulous managers 70 tumble
with the figures OF railway accounts as was
done In the 7os and the early Sos. The
public has been educated up to point
where It holds railway managers to a stricter
accountability than heretofore. and In many
cascs the companies themselves have recog-
nized this change and have even encouraged
Il by adopting a system OF independent audit
of their accounts. Much could be said upon
all Of the points enumerated, but tho mere
mention Of them 10 enough TO carry convio-
ton. that present prices for many railway
securities are fully justified by tho rapid
and desirable progress that has been made
In every direction in the transportation fold
In the last fifteen years
To-day's stock market started OF With q
fresh impetus from London. where American
securities generally were fractionally higher
than at tho close here last night. st. Paul
showed an exceptional gain OF more than q
point. Foreign srbitrags houses we're lib
eral buyers during the two hours OF bust
ness and toward the close. precipitated by |
what looked like bear panic, In Northern |
Pacific common. il Ia well known that Lon
don dealers still have outstanding calls on |
a large amount Of American shares which |
mature at the end Of the year. To what |
extent they have protected themselves it |
is difficult to determine. but judging from |
the demand both In London and hero for |
certain stocks. IL would seem to he q fair |
Inference that they are stu short OF a great
many thousand shares At tho same time |
The supply OF some issues has become SO linz
tied that foreign arbitrage dealers have to |
proceed with great caution In operating
the two markeR