The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-03-17
tj$tl
.lv0H'E { | +: [.
upon. THEM |.
Decision il1 N orthertl Securities 1ccestrtlHsS
" Case Mill Not Affect Cut3$5
Railways. S5.
COMMUNITY INTERESTS Il 4 ::' ] s



Z. 81 O.It&I Is Authorised. III
i Since the decision Of the United States
suprenlc Court jnSthe merger case Of the
Northern Securities Company wns handed fIr't,
down. affirming by a8divldnd court the
decision, Of tho lower court IN tho North.
lsrn Pacific case, there has been con-.
siderable interest in RAILWAY circles ~
this city aud Throughout the country ~
tho matter OF tile possible bcnrlnE ct
tits ACKNOWLEDGEMENT upon tho cases OF
other railways working under a COM
6munlty Of Interests plan Especially IS
this true Of the relations OF the P;e'nnsy;l-i
vania and the apaukeS and ONO ana al
Norfolk aud Western Railways.
# Tho Pennsylvania Railway owns Slt n
large interest in the securities OF the
Norfolk and Western Rnilwa as and the
Pennsylvania. ana New York Central own
q. controlling interest insthes securities Of,
the chesapeake ana Ohio. but authority
for such ownership of securties BY one
road In another Is given III the charters
ct those compnnes.3T The decision IN the
Northern Securities case does not touch
this phase Of tho m crger Ques ton. III
DOES NOT AFFECT q I'll EN-; 81
The opinion among local railway mel
is that the decision just handed down
does not tr.ffectEtile relations o. the Penn
sSlvanin and %Chesnpcnke&and OHIO. nor
those OF the Pennsylvania and tho klS NOR
folk and Yves tern. These roads have power
under their charters to own securities IN
other always. .3st I. ls y
Tho decision does, however, put ~ STOP
to any effort to control by combination
tho railway situation In the South; The
community OF ownership and Interest
among southern railways will, however,
enable them to work IN harmony without
contrayentlon8 OF the decision Of the ,s0urt
iii the Northern Securities cas- # } Z
M one OF the Dest&evidences that the de-
bt,ision does not affect the Pennsylva Ma, i
Norfolk and western Chesnpeake5 and
Ohio lis afforded In the stock quotations
or the past few days. The stock market. IS
the thermometer OF finance. and Whe elni
the stocks 'of these roads tnke &an&rpWtaru
trend, as they have done, Immediately
upon the announcement of a far-reachins
decision IT, is regarded as a potent en-
ipression Of confidence among holders ana
BUYERS OF railway securities that those
roads are not affected by the merger
decision. The stocks Of all three OF the
{ roads named have gone up from TWO 70
three points since the decision Of the SUI
preme Court was promulgated.
ROADS NOT AFFECTED. sS
4 Baltimore f1nancier and railroad man
is quoted BY the Now York Commercial
as saving Of the effect Of this decision
ma the railway situation in the South
generally:
I..Fhc decision does not touch upon the
ownership Of securities by ono road IN
anothcr4wtareS the authority is given In
the company's charter In fact. the gov
eminent disclsimcd any Intention OF
questioning such ownership. Its It case
rested upon the. assertion that the
northern Securities Company was q de-
vice to evade the Sherman law and that
1t was brought into existence for this
purpose.
.trhe Baltimore and Ohio ownership In
the Reading is for the purpose of pre-
venting it from being shut out OF New
York. Without this ownership there al
ways was danger of some one getting
control OF the property and breaking
up tie through service of the Baltimore
an1 Ohio Tho Reading is connection
and not n competitor Of the Baltimore
and Ohio. 5s !.
$50 far as the Pennsylvania is concern
| ed, it does not own a majority OF the
stock of the Baltimore and ONO. Is
ownership in this company, as we'll an ID
| THE Norfolk and Western and the Ches-
apeakc and Ohio. is not affected ny the
decision, as these Investments are within
| Its powers to own securities II tol In
| railroads" l53s5 s
| LOUISVILLE AND NASHVILLE DEAL,
| The Commercials Baltimore correspon-
dent further says OH the subject:
4 Financial circles consider the decision
| as ending all chances OF Il combination
or tho railroads III the South. 1t s not
| considered as affecting the ownership q
the Louisville and Nashville by the At
lantic Coast Line, rs these two properties
/ occupy separate territory and are moi
competitive. ri 81
4 Coast Line interests always frownet
|5,lpon the talk OF n Wholesale animation
/ IN the South When quoted upon this
1 nroposjtion they invariab bly, took the view
4 that tic temper Of the people In the
Il South toward mergers WAS too intense
4 to undertake such a. scheme, even IL J
could legally be done. b
There IL a community of OWNERSHIP
4 now existing from the holdings by larg'
interest OF blocks OF securities ~ potl
j, the Atlantic Coast Limo and the Southern
Railway. Recent inves tors In tho Seaboar'
Air Line work In harmony with these m
forests and we'll posted tlnanciers expec
that The relations Of this sort VIII en-
large to auoll an extent as to maintail
harmony without unifying the ownership
OF these properties. YIN
2is HJJHPCH NOTES