The daily morning journal and courier., 1906-09-19
lAA1 LADAl, N9ocK MARK
Banking House Admits Negotiations for Baltimore and Ohio Sale---Money Mar ket Continues Strong.

New York, Sept. 18.-The principal factor in the stock market to-day was the admission by the banking house having the transaction in hand that ne- gotiations were in progress for the sale to the Union Pacific of the stock of the Baltimore and Ohio railroad recent- ly sold by the Pennsylvania railroad to the bankers. While the sensation in the days market was in the Reading movement. the Baltimore and Ohio transaction was none the less the im- polling cause. This was so for the reason that the division of control of the Reading among the trunk line rail reads was managed in the case of the Pennsylvania by placing holdings of reading stock in the Baltimore and Ohio treasury as the New York Central on its part placed Reading holdings in the Lake Shore treasury. With pass ing of control of Baltimore and Ohio to other hands than the Pennsylvania it's share of influence in the Reading control would be affected also. Kuhn, Loeb & Co. asserted that the report of sale of the Union Pacific was prema- ture, while admitting that it was un- der negotiation. The various problems were thus presented for the considera- ton of the investor and the speculator. It was assumed that the Pennsylvania would insure itself against harmful use of the control of Baltimore and Ohio before parting with it, But less cer- tainty was felt as to the possible ati- ude of other lines to the new arrange ment especially in is bearing on the Reading management. The violent ad- vance in Reading aroused some appre- hension that scramble might be go- ing on amongst the railroad powers to achieve a belated readjustment of the balance In Reading holdings. The con- tinued strength of the money market also was a cause of dissatisfaction in speculative circles and disappointed the belief that the thrush of gold last week and the continued arrivals by steamers this week had effectually relaxed the money stringency, Not only was the call money market hard to-day, with a high rate of per cent. but the prem ium on time loans was again advanced. Discounts hardened in Paris and Lon don. The rise in the German banks of fieial discount rate was sufficient notice of the rising course of the money mark ct at the center. The points of strength in the days market were generally amongst industrials, Amalgamated con- tinuing conspicuously with reiterated rumors- of a dividend increase. The rail- way equipment stocks enjoyed the ben l eft of the known urgent requirements l of the railroads. Republic Steel was af- fected by the proposed increase in Ten nessee coal stock in view of the belief ] in ultimate merger of the two compan- 1 ies Minneapolis, St, Paul and Sault Ste. Marie suffered from the dlsappoint-
 ment of persistent claims that the div. idend was to be increased at to-day's
 meeting of he directors. The market showed some relief when Reading 1 yielded more than half It's six points
 advance, but the closing was irregular
 Bonds were irregular. Total sales pal
 value, $2,OSS,0OO.
 United States bonds were unchanged
 on call.