The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-04-19

Great Northern Railway and practically
all of the stock of the Northern Pacific
mense issues of bonds incident to the pur-
chase and transfer of the Chicago, Bur-
lington & Quincy to the Northern Pacific
and Union Pacific. Burlington is owned
Jointly by these two roads. The Union Pa
cific is therefore as directly interested in
the decision almost as Mr.. Hills combina-
ton. For that reason the Union Pacific Is
being selected as a vulnerable stock for
bear raids. 1t has been this far well sup
ported, but a strong bear campaign against
the property has already been organized
and Is actively at work. One of the leading
spectators in the stock market is going
about telling his fellows that in his opinion
Union Pacific would sell at 60 within the
bonds nearly as low. The same Spectator
was an extravagant bull on Union Pacific
when it was selling above lis last summer.
He explains his shift by saying that condi-
tons then and now are entirely different.
and that the Union Pacific is in danger of
becoming involved in litigation from which
it may never extricate itself, and which
must have injurious effect upon the
property. This is mentioned simply as
Wall-street theory, and as one of the Incl
dents growing out of the Northern Securi-
ties decision.
1t is more than probable that the litiga-
ton begun by James r. Keene against the
Hartman interests for control OF South
ern Pacific will be dropped. At first blush
it would appear that the decision fore
Swallowed a victory for Mr.. Keene in the
higher courts, but inasmuch as a victory
there would be boomerang against him
self, he is quite likely to draw out, al
though nothing positive is known. The
Southern Pacific Company is itself hold
ing corporation, and has been subject to
attack for years by authorities of Texas
and other States for alleged violation of the
State and federal laws prohibiting buying
competing lines. Mr.. Keene is still heavy
owner of the stock of the Southern Pacific
Company, and if he carries his litigation to
a successful end he might be destroying
his own corporation. Mr.. Keene will go a
long ways TO win campaign, but he has
never yet been accused of pursuing a course
injurious to his own pocketbook. Mr..
Keene by the way, will soon sail for Eu-
rope, to be gone most of the summer. He
has leased estate short distance from
London, and proposes 10 enjoy season or
complete rest from business can es He has
stable In England, and will take an active
interest in the races there Mr. K.ene hurt
his knee thirteen weeks ago, and his leg
may be stiff for the remainder of his life
old. His general health is good-better, in
fact, than it has been for years.
XXX
Mr.. J. Pierpont Morgan has twice de-
ferred his departure for Europe. He now
expects to sail on Wednesday, the 22d
inst, although he may conclude to remain
here a while longer. He has been invited
to dinner to Count Spec Won Sternburg.
the German ambassador, on the evening of
the 22d, and has given half promise to
attend. Mr.. Morgan has important social
as we'll as business connections in Ger
many, and as he Is personal friend of
the Kaiser he will strain a point to show
courtesy to his representative in this coun-
try. Mr.. Morgan has been under terrific
strain for six months, greater than at any
time during his life, and he shows the
erect OF II. HIS step Is not as elastic as
loss of physical vigor. His eyes have the
same glare as ever, and his manner is
more brusaue, IL possible. If he gets away
he expects to remain in Europe at least
three months.
The principal parties to the negotiations
for the purchase Of the Frisco system by
Rock Island have steadily declined to ex-
plain why the deal fell through. They
have been extremely careful to avoid per-
sonalities, and to all appearances they will
continue to be friends and operate the two
systems amicably. 1t is by no means GER
tain even that the deal is Off permanently,
although the owners have thus far failed
to reach an agreement as to the exact
terms of the sale. There is room for both
roads operating independently and without
interference one with the other, although
In conjunction they would make a power
persistent reports of close relationship be-
tween Rock Island and Atchison Officials
of both roads deny point blank, however,
that there Is a union of ownership or the
remotest probability of such a deal.
XXX
The last break in the stock market in
creased the total shrinkage in securities by
at least 3Oo,00O.000. This is a big price to
call upon the market to stand In payment
for the mistakes of a single group of
financiers determined upon bending the
law to suit their own purposes regardless
of consequences. The average of prices
now is only slightly higher than that
reached at the depth of the panic caused
by the Northern Pacific corner just two
years ago. The actual value of Transport
tation properties has enormously increased
during the last three years. and with en-
larged facilities Is per cent. more tonnage
can be carried now than then Reports
from the West and South, where the sur
plus crops are produced. indicate the great
est year in history in agricultural activity,
and probably also in point of production.
The monetary situation is improving. The
tide Of money has again set toward New
York, and season of reasonable interest
rates is ahead, If reliance is to be placed
upon the estimates of persons best advised
as to conditions. There is apparently no
lull In industrial activity.
W. G. NICHOLAS.