The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1903-01-16

e.
therefore, prudent investors are waiting
for a sharp reaction before buying The
trading during the week has reflected
professional manipulation, but thss mar
ket today displayed better buying than
selling There is certainly nothing i'm
the situation to warrant decided break
from present prices. Money continues
easy and plentiful.
The Baltimore and Ohio has advanced
the wages Of telegraph operators prac-
ticaliy 20 per cent by reducing the hours
from ten TO nine a day, and increasing
the pay 10 per cent. This advance is in
line with the policy OF most of the rail-
roads with regard 10 their employees.
but the Baltimore and Ohio is the first
to act directly upon the wages of teIe-
graph operators.
It will necessarily follow that with in
creased wages railroads will not De able
TO show large net earnings in the future.
unless freight rates shall be advanced
But as this course has already been de-
cided upon BY the railroads it is be
lieved the increase in rates viii more
/ than compensate Tor the increase in
wages.
+ 1Ir. Morgan frankly stated yesterday
before the Interstate Commerce Com
mission that John W Gates was a dan
geTOus man 10 leave in control OF Louis
vile and Nashville, and that his con
/ tinuance in that position would have dis
Tupted the whole Southern railroad stu
alton Therefore the purchase of the
stock he controlled, amounting TO 395, 600
/ shares, was in the interest of p.-eserv-
ing the harmonious relations then exist
/ ing. Mr. Morgan said il was purely a
! bankers transaction, and was not made
/ in the interest OF any railroad, and that
when purchased it was not known TO
what railroad the Louisville and Nash
Vile would be sold The purchase price
paid by the Atlantic Coast Line was
! $50, 000, 600, $4,000. 600 of which went to
J. P Morgan & Co. The original agree
ment entered into between that house
and Mr. Gates vas that the latter was
TO deliver to them 102 600 OF the 204 900
shares of the stock he owned at
80. and that If the railroad
+ could not be delivered into safe hands
+ by October Is the stock was to be re-
turned 70 Mr. Gates It was subsequent
/ TO this agreement that aTTauZ ements
( we're made to sell the road 20 the At
Iantic Coast Line The relations between
this road and the Southern are friendly,
but neither dominates the other The
feature of the testimony was The frank
estimate placed by Mr. Morgan upon the
character OF Mr. Gates He was said to
be "a dangerous element in the railway
! world The stocks Of both louisville
and Nashville and Southern were ex-
tremeIy- strong this morning as a re-
suit OF Mr.. Morgan's testimony
The proposed combination Of the
| Wells Fargo and the Pacific Express
companies is believed to be the
forerunner Of the consolidation Of East
ern as we'll as Western express com
panies-
The strength Of the Gould stocks is
/ said 10 be due TO the completion of de-
/ tails relating TO the organization of a
+ holding company. which Will be similar
in purpose and plan 10 the Northern Sc
Curities Company. This plan is known
/ some time, but its establishment has
/ been deferred because of the litigation
pending which may result in annulling
1 the charter Of the Northern Securities
Company. It would seem that none OF
the legal objections made 10 the valid
ity Of that charter could be sus-
/ tanned in an attack upon the Gould hold
ing company. for the reason that the
Gould system Is made up of roads that
do NOT parallel each other and are there
fore nOn-competing-
The buying Of Missouri Pacific this
( morning was traced to Gould brokers.
They were also instrumental in keeping
/ Manhattan strong. The directors OF
this company. it is said. viii today au-
! thorize the issue Of S.. 0OO. coo Of the
/ So. 600 600 new stock. and that stock
holders viii be given the right to sub
scribe for il at par TO the extent OF
Is per cent of their holdings. This
would make the rights worth about $3.50
on a share. and insiders predict the
stock vii sell higher than present
prices even after the rights come of
One Of the stocks which is acting re-
markedly well, and is worthy Of con
Isideration by any investor is BaIti-
more and Ohio. It is selling between
101 AMI 102, and the sales indicate thai
the stock is being accumulated.
A director of the Chicago, Rock Island
and Pacific Railway Company states tina,
the interests controlling that road would
like TO buy the Erie Railroad if they
could get it at a reasonable price This
director intimated that q tentative offer
had been made to J. Pierpont Morgan to
turn over control Of the Erie TO the Rock
Island at a certain figure. No person con
nected with J. p Morgan & Co. viii
talk about Erie Railroad affairs. 4
representative of the Vanderbilts said
that ne did not believe that the Van
derbilt and the Pennsylvania interests
/ would permit q great Western system
ike the Rock Island 10 invade trunk
line territory, which they now practi-
caIly control.
The plants Of the Republic Steel and
Iron Company. near Chicago. have shut
down. thereby throwing 5 900 men out OF
employment Need Of coal is the cause
and not want Of orders
The Iron Age" says: Our monthly
blast furnace statistics show that we
entered the new year with the pig iron
productive capacity above the record
thus far The plants running on that
date were able TO make 354, GS4 gross