The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-03-20

THuRapAY. March 10.


The security market opened to-day
under the shadow Of Q possible corner
in the Southern Pacific shares, and the
early trading was greatly ourtailed BY
this circumstance Fears of such an event
at the present time are, to any reasoning
person, quite unfounded. Nevertheless,
memories Of May 0, 1901. were very vivid
in the minds Of many people having interests
in the market to-day, and many commas
sion houses declined TO conduct speculative
,,,eras;;y..s FOR the fall in Southern Pacific
for their customers. announcing likewise
that any orders TO buy Southern Pacific
stock must be accompanied by larger
margins than usual, This rule held COCO
during the day, but ks signs OF the much,
dreaded corner" on& by one, disappeared
confidence was restored TO the market and
prices advanced generally and considerably
The impression gained from the Gay
market as a whole was that speculative
sentiment at present favors higher prices
rather than lower ones. and that II the
Southern Pacific difficulty was out OF the
way a much better market would be seen
II is admitted. however. that the Southern
Pacific difficulty is a menace TO all specu
lative operations just now. The market
for the Southern Pacific and, to a consider
able extent. the Union Pacific shares has
become wholly strained and unnatural.
and all usual considerations OF value ana
earning power have no force whatever IN
affecting quotations for these stocks. Mr..
Keenes statement regarding the attitude
taken by him in the matter was read with
great interest in Wall Street to-day, the
more so, perhaps. as 1t was understood
that the statement was written by himself
word for word as II appeared. IL did not
however add anything to the information
previously possessed by the public, except
that contained in Mr. Keene's declaration
that he was the owner Of $1,000 shares OF
Southern Pacific stock before the Union
Pacific Railroad Company acquired any
Southern Pacific shares. Wall Street IL
inclined to believe that the questions pre-
sented in the legal bill of complaint pre-
sented to the court by the minority Southern
Pacific stockholders are serious ones and
may involve other interests besides those
of the Southern Pacific and Union Pacific
Railroad companies. But, 1t Ia urged. that
the fact that the lawsuit has been begun
for what may be called speculative reasons
must inevitably prejudice it's cause As
bea ring upon the general questions pre-
sent ed in the case. there are some reasons
for believing that shortly before the Union
Pacific directors were served with the in
junction prohibiting them from voting the
South ern Pacific shares owned by the Union
Pacific Company, these shares were trans
ferred to resting places where, 1t was be-
leved. the various antitrust laws could
not he invoked against them. Such pro-
cedure might be a~harp move. strategically,
but il would obviously argue lack OF con-
fdence by the Union Pacific people In the
strength Of the position previously assumed
by them. On the other hand, the assertion
il made very stoutly by the Union Pacific
interests, and at present seems to be gen.
orally believed in the financial community,
that they will be able to vote a majority
Of the Southern Pacific stock at the annual
election without reference to the stock
act ualy owned by the Union Pacific
company.
That the floating supply Of Southern
Pacific is still small In shown by the fact
that a premium OF I per cent was bid to-
the close Of the market would-be Dor
rowers Of the stock were endeavoring to
obtain IT by Offering to forego the receipt
Of all interest on a., tn. ,s moneys pledged by
change was quite a little hrmer to-day
and money rates were harder in all the
European financial capitals. Call money
rates here rose to 7 per cent, owing, IL was
said, to the necessities OF late borrowers.
Time money. however. was much easier.
and this Is far more important circum-
stance In showing the tendency OF the money
market The weakness OF the stock mar
ket in the last hour was nevertheless
attributed to the rise in the call money
rates Stocks which were especially strong
TODAY were Louisville, Brooklyn Rapid
Transit and Union Pacific. The short
interest In the latter stock 10 said TO be
very large and one which would undoubt-
edly retreat precipitately II anything like
a settlement OF the Southern Pacific dis
pute was regarded as i'm minent. Some
observers thought that the strength OF
Union Pacific to-day indicated that such
a settlement was. 10 fact, approaching.
hut this was not the view OF those most
competent 10 form an opinion.
Sew York stock Exchange Saies. March . o.
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