The Washington herald., 1907-03-29
NEUTRALITY-SUSPICIOUS.
New York and Foreign Cen
ters Show improvement.
HILLS VICTORY AIDS MUCH
Strengthens Price of Great Northern
Preferred shares-Court's Decision
Gratifying 80 MaEnates and In
vestors-Means Western Railroad
stocks Are still Good Holdings.

New York. March 2S.-The improvement
in financial sentiment which in genera
made itself felt in the stock market yes
terdsy. was much more pronounced in tn,
financial district to-day. In the frs
place, all .advices received from the lead.
ing European financial centers were Of
encouraging tenor. The fortnIghtly set.
tlement in London passed of satlsfac,
toriiy; money rates as a rule abroad
evineed a declining tendency, and
there was better demand for investment
securities. ConsOls rose briskly in Lon
don, and although the weekly statement
of the Banks of England and France as
to-day presented We're not overbriiliant,
the fact exercised no adverse influence
upon the course Of values.
Reasons for this was, no doubt, that II
was well known that these foreign insti-
tutions at the moment are making the
same sort of preparation for the forth
coming April / disbursements as are now
here, and that the statement Of conditions
of the banks rendered at this time makes
showing that is essentially partial and
incomplete.
Shortly after the opening Of business
here it was announced that the Supreme
Court of the State of Minnesota had
handed down a decision favorable to the
NGreat Northern Railway Company in the
litigation by which the authorities sought
10 restrain the Great Northern Company
from issuing $eo,0o0000 of new stock.
News Strengthens Prices.
This news naturally strengthened the
price of the Great Northern preferred
shares very decidedly, and also served to
bring about a general advance in the
security market A reaction followed,
based, apparently. upon realization of the
fact that now that obstacles to the issue
of this stock have been removed, call
viii be made upon the Great Northern
shareholders for the necessary payments;
and II seems that under the terms pro-
Viding for these payments as they stand
framed at the present time. S24000.O00
E1ll have 10 be paid in upon the new
stock issue on April 9.
Il IS understood. however that large
portion Of this sum has already been paid
into the treasury Of the company.
The rights to subscribe to the new
Great Northern stock fen sharply in Tie
curb market to-day when il became
were actually 70 entail a cash subscrip-
uon 70 new stocks; but the decline was
par;ly due TO the circumstances that for
some time the price of the rights in the
curb market has been considerably higher
than the true parity with the price Of
Great Northern stock.
News Gratifying iB Many Ways.
The decision OF the court of Minnesota
is gratifying in many ways first, because /
il attests that railway companies have /
rights that after ALL the courts of the /
WesIern States are bound 10 recognize, /
and, second. because the principle is 4
affirmed that the legislature of the State /
cannot delegate to a railway company
created by the legislature discretion to fix /
railway rates, but that the exercise of 4
this discretion is a legislative matter and /
can be used only by the State legislative 1
body itself.
II this view is taken by the courts of
other Western States besides Minnesota,
IL viii go far 10 simplify many affairs
and to reassure the confidence of invest
ors in railway stocks.
Very little attention was paid in Wall /
street to-day TO the news of the suspen-
sion OF u private banking concern which
has for long time done very little bust
no way connected with transactions on
the security market. More thought was
paid TO this development than 70 the large
gains made by the local banks from the
up 20 the opening Of business
this morning, which, il is understood,
were augmented during the day
Bank Statement Looks Good.
The credit balance of the banks with
the SubfraasuTv in the yyaaL- time far
amounts 10 S. 10000 and inasmuch as the
bank statement of last week obvi-
0usly erred Ia an undeFstatement of the
cash holdings of the clearing house in
stitutions. it seems altogether probable
t0at an unusual increase in cash VIII be {
reported in Saturdays return Both call :
and time money rates we're again to-day
distinctly easier, and il is now certain :
hat the financial settlements of the Ist !
II April will pass on almost Unnoted from
stock market point OF view s