The Washington times., 1906-01-30
MAY FORCE PENNSY
INTO THE COURTS
BY INVESTIGATION
Wall Street Startled BY
Proposed Probe Pre-
Sented to Congress.
COMPE TITI0N DOWNED
Claimed That Case In Point
Is Parallel One to North
ern Securities.
COMPETITION DOWNED

NEW YORK, Jan. Oval Street re-
CARDS with much apprehension today the
possibilities that may grow out OF tha
resolution, passed in the House OF Rep-
resentatives in Washington yesterday.
calling for information regarding ths
control by the Pennsylvania railroad.
through stock ownership. OF the Bal
tlrrore and Ohio railroad and other So
called Pennsylvania railroads.
An investigation Of the extcat OF in
-iuence that the Pennsylvania wieIds
over the lines in which il has a viz
tuaI controlling interest, might show
that competition had been DESTROYED in
violation Of the interstate commerce act.
md thai suits similar 10 the Northern
Securities cases would be brought IN the
Federal courts 10 compel the Pennsyl-
Vania TO disgorge its holdings OF stock
in other roads.
Pennsylvania Seems AmenabIs.
a Wall Street operator, who has made
a speciality Of the Pennsylvania group.
said this morning:
If 1t was possible to smash the
northern Securities Company on the
ground Ihat The roads merged were par
alieI Hnes' the Pennsylvania seems
~menabie 10 the same law. PronerIv
speaking, the Pennsylvania groun cono-
pflses the Baltimore and Ohio, the Nor
icik and Western, and the ChesanAaLa
and ohio. There are many minor grouns
Of smaller roads.
me baltimore and Ohio is A trunk
Ine which parallels the PennsyIyanIs
from mere 10 Chicago. and should ac
IVely compete for business at PhfIadei-
phla' baltimore Washington, Pitts
ouFg, Cleveland. Columbus, Cincinnati.
st. Louis, and Chicago. as well as many
other points.
The Baltimore and Ohio IS operated
as an Independent system, but the ex-
tent OF its independence NAY. .be. gaugea
1 Dy the Iact that out Of the outstanding
capital stock Of SIS. 10000 OF the Baltf-
more and Ohio the Pennsylvania owned
1 iast year SsSoo5,Vo1- Such a tremendous
4 block Of stock amounts TO nothing rDors
than actual control and the PennsvI-
wanna dictates the operating policy OF
the Baltimore and Ohio.
Stock in Other Roads.
''The Pennsylvania owns $4,000 900 OF
the Ss9.0oooc9 capital stock of the Nor
folk and Western road, and holds SIC
lSQ,VVo or the $62000.000 capital stock OF
the Chesapeake and Ohio -aiIroad.
How the Pennsylvania and New York
/ Central railroads bought the complete
stock control OF the Reading railroad
through the Baltimore and Ohio and the
Lake Shore railroads TO avoid fbs in
terstate commerce law is well known.
Friends OF the Pennsylvania road
however, declare that inasmuch as tba
Pennsylvania holdings in Baltimore and
Ohio, Chesapeake and Ohio. and Nor
folk and Western are not sufficient IN
amount 10 an actual ownership OF a
majority OF the stock Of the three roads
the Pennsylvania cannot be amenable
TO the same law which applied to tbe
Northern Securities Company, whtclI
was shown 10 have an actual and COM
plete stock control Of the roads
merged.
Discussion on the floor OF the stocl<
exchange this morning OF the possibiIt-
ties Of an investigation into the hold
ings Of tas Pennsylvania had an un-
settling influence on stocks all dav. ana
fluctuations were extremely feverish.