New-York tribune., 1903-04-04
SHARP RALLY IN S. p.
Rumors That Morgan 8 Co. We're to
Take Keene Holdings Denied.
BOOKS CLOSED FOR ELECTION.


Half an hour before the Stock Exchange closed
yesterday Southern Pacific, which in the fore
noon had broken sharply 3 points. rapidly
rose nearly > points from the lowest price Oh
the day The sharp rally vas accompanied by
a strong rumor that ]. p. Morgan & Co ana
Kuhn Loeb & Co. had agreed to take over the
Southern Pacific stock of the Keene pool This
ARRANGEMENT was said to have been made on
Thursday night
These reports were promptly denied in every
authoritative quarter. member Of J. p Morgan
& Co. saying
''There is no truth whatever in any statement
that Mr.. Morgan or ]. p. Morgan & Co nave
taken over any Southern Pacific stock from
James r. keene or T J. Taylor e. Co, or any
pool with which those men may be allied we
have no interest in the matter. either directlS
or Indirectiy-no interest in any shape. manner
or form. This statement holds good to-uaS' Io
morrow and indefinitely
>Denials no less positive came from f. H. Har-
rinan's office and from the banking house OF
Kuhn. Loeb & Co At Talbot j. Taylor & Co $
office il was said that there had been no set
tlement and that Mr.. Keene expected hgnt 10
the finish rather than settlement
MANY other rumors lowered about Southern
Pacific yesterday. In the forenoon the STOCK
slumped TO 55L, which was about fifteen points
below
credited with having paid. Some brokers thought
that the selling meant that Mr. keene had
gone heavily short OF the stock at higher prices
against his pool holdings and was preparing to
cover his contracts lower down at a profit on
the short side Others thought that the later rally
sfgnified that Mr.. Keene was making hard
fight for recovery, until the story OF Mr. Nor
gan coming 10 his aid noised about Fur
ther rumors went to the extreme that the pro-
ceedings pending at Nashville would be In favor
of the Southern Pacific pool
The books of the Southern Pacific Company
closed yesterday for the annual election. to be
held I'm Kentucky next Wednesday. The loan
ing of the stock yesterday at a premium ranging
from 1-16 to per cent as the demand became
more urgent indicated an unusual demand for
voting purposes. This gave rise to an uncon-
firmed report that some one was attempting TO
buy proxies for the meeting. Indications OF an
active canvass started the inquiry whether it
was not Illegal to so dispose Of them \ section
of the Penal Code OF the State was quoted TO
show that it was a msdemeanOr to sell vote
at an election OF directors in any corporation
A few brokers held that this section applied 70
the Southern Pacific case. although that COM
pany was organized under the laws of another
State and the election was to take place In thar
State: the contrary view was more generally
taken.
The announcement from Nashville that Judge
Lurton would try on Monday to hand down his
decision in the suit encouraged the Street to
believe that this troublesome factor in the mar
ket would be eliminated
Another feature, however. in the struggle
came to light yesterday, when Robert L. Cut
ting for himself and other stockholders OF the
Central Pacific Company, said that he would
ask Justice Lacombe TO enjoin the directors OF
the Southern Pacific company, which controls
the Central Pacific Company, from Issuing any
more bonds on the subsidiary property. Mr..
Cutting alleged that Il was the intention of the
directors of the Southern Pacific company to
issue So 100000 Of additional bonds. which out
put would, he said, be contrary to the interests
OF the stockholders.
Talbot S. Taylor said yesterday that he did
not care to make any reply to the statement by
Delaney Nicol charging that he (Mr. Taylor
and Mr.. Keene three years ago took part in an
attempt to wreck the State Trust Company.
Mr. Keene refused to see reporters yesterday.