Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-09-23
Lethargy Marked Weekend
Market Dealings.
DESPITE BANK STATEMENT
Which More Than Met Expectations
of Brokers.
STOCK OPERATIONS
HEAVY
Union Pacifc's Negotiations for Pur
chase Of B. and o. Holdings Fea-
ture-Europe's Gold Shipments.

ture-EurOpe 0Olu oAAPAASA'
NEW YORK, September 22.-The bank
statement today fulfilled the brightest eA-
pectations and belied some forecasts from
the usually accepted experts that nat
threatened a poor showing But IN spite
of the improvement indicated IN the oank-
ing position the stock market showed little
inclination to throw off its lethargy. Inc
course of the time money and mercantle
paper markets toward the end of the week
was regarded as better index OF the SIT
uation and of the dissemination Of money
lenders to intrust further resources to the
uses of stock market operations.
The amount of resources at the COM
mand of the banks must supply the extra
ordinary requirements about the LIST OF Oc-
tober and it is realized that growing oill-
Guilty will be encountered in securing aooi-
tional gold abroad for the benefit OF Ne"
York The 81 Az. 200 loan expansion OF the
week shows the continued demand for large
credits in spite OF the restraint upon STOCK
market activity which has been In evidence
throughout the week. Estimates mace yes
terday by the accepted authorities showed
astonishing discrepancy in the item OF the
weeks cash movement varying all the way
from gain OF over S11.OOO,O0 by the
banks to a loss by those institutions OF
over s., 0OOOOO. The confusion was caused
by the different accounting for the gold
arriving by incoming steamers during the
week. This gold figured technically as
withdra walls by the subtreasury from the
banks, as Ii was covered into the SUD-
treasury on arrival in repayment or gov
eminent advances made at the time of the
engagement. But in this method OF &C
counting the arriving gold should have ng-
ured as gain to the banks on first arriving
70 ln6 n
such gain to the banks as the gold engage
ments had released government funds TO
the banks in equal amounts when hrst
made abroad There was confident hope
among speculative operators yesteroay
that further measures of treasury relief
would be announced before the day was
over. Disappointment of this hope prompt
ed some of the selling. The market closed
weak at considerable net losses. Total
sales of bonds, par value $4,000.
Large but Congested Operations.
Operations in stocks have continued large
during the week. but were congested in a
few of the prime speculative favorites, and
prices fiuctuated unevenly and irreguarly.
Some of the important developments of
the week were looked upon from different
points OF view, and these mixed interpreted
tons were partly responsible for the uncer-
tain movement of prices. The stringent
condition in the money market, especially
for time loans and for mercantile paper.
also gave renewed Importance to the con-
sidera ton of the money outlook and eXer-
cised some restraining influence on the
market.
First Importance, by common consent, is
given to the authoritative admission that
Union Pacific Is negotiating for the pur-
chase of the holdings of Baltimore and
Ohio recently sold by the Pennsylvania to
Kuhn. Loeb d Co. While the proportion
of total Baltimore and Ohio stock thus to
Ia
fifth, it has been the universal assumption
in Wall street that practical control OF
Baltimore and Ohio by Union Pacific was
impending. The consequences of the new
order of things thus involved for the rail-
road world of the whole country are SO far
reaching as to puzzle the understanding.
The operation of railroad under one
control from ocean to ocean is departure
from established railroad policy that would
necessarily be followed, in the estimation
of the financial world, by wholesale ad-
justment of relations between the greatest
railroad systems in the country. RumOrs
OF the form which these readjustments
are likely to take have formed the main
topic of discussion and speculative rumors
in the stock market during the whole week.
The situation suggests a comparison with
the period Of the formation of the North
ern Securities Company, which stimulated
a furore OF speculation over the possibili-
ties of the community of interest idea
among the railroads of the country. That
idea in substance involved the exchange
of holdings among parallel and competing
lines and overthrow by the authority
of the government by judicial procedure.
The Union Pacifc's Project.
The Union Pacific project is on the lines
of longitudinal rather than lateral extension
of control by the absorption of connecting
lines. The present railroad systems of the
country are pretty strictly limited in the
field of control by north and south lines on
the map, dividing the country into differ
ent railroad territories. Railroads in one
territory have exchanged traffic with vari-
Gus connecting lines in adjoining territory
and have refrained from efforts to control
connecting lines or to form exclusive traffic
that they would invite discrimination
against themselves by the more numerous
uncontrolled connecting lines. The Gould
project for single controlled system from
San Francisco to the Atlantic seaboard for
some time has been a disturbing influence
on this policy. and obstacles were actively
opposed TO IL by the Pennsylvania.
II is inferred that the Pennsylvania has
made choice of the Union Pacific for re-
cipient OF its Baltimore and Ohio holdings
with view to special competing advantage
thus provided against the new Wabash
project. and 1t Is not questioned that treaty
provisions are included in the agreement of
sale intended TO safeguard the Pennsylvania
interests. The position of the Baltimore
ana ONO as the h0iQlnx company Tor the
Pennsylvania interests in Readin. in the
division OF control of that property among
the trunk lines complexities the results OF
the transaction.
Reading not only constitutes q connecting
trunk line link with the Baltimore and Ohio.
but also represents the centralized control
of the anthracite industry. This fact gives
plausibiity to the superstition that new
plan OF control Of that industry Is In con-
temptation which will divorce 1t from the
transportation industry. in compliance with
rev legal restrictions against such joint
control.
Surmises Over Other Railway Plans.
Surmises over other changes in control
OF railroad systems to balance the Union
Pacific project have been of great variety
The most obvious was that Pennsylvania
would receive Union Pacific holdings OF
Atchson in return for its Baltimore and
Ohio stock. Old reports of probable con-
troll of Erie as a connection for the Great
Northern also revived. Stock marke,
gossip has provided pretty thoroughly for
similar connections for all the great trunk
lines and transcontinental routes. The re-
straint and caution of the speculative OPP
erations. however, has indicated the degree
of reserve with which the flood of unau-
.horized rumors on the subject has been