The Washington herald., 1908-01-28
WALL STREET NOTES
Suit Against Union Pacific
Causes No Alarm.
MARKET ADVANCE is STOPPED
Reaction in Last Hour Is Accel-
Grated by RumOr that Union
Announce an Issue of $35,0OO,OOO
Additional Common stock.

New York, Jan. 1.-THE advance in the
market to-day. following the definite an
nouncement of the governments iuten-
ton to bring suit to dissolve the relations
existing between the Union Pacific Rail
road and the Southern Pacific Company.
made it very clear that Wall street has
no apprehension regarding the outcome.
The general opinion was that the De
partment of Justice had fired at random
and had failed to hit the mark.
Not the least extraordinary part from
Wall streets point OF view, against the
Union Pacific is that as a result of a
close union between Union Pacific and
Atchison competition has 10 a large
extent been destroyed " The union"
shown 10 exist between the two COM
panies consists OF the ownership by the
Union Pacific Of $4,000. 600 Atchison pre-
ferred out Of a total of &216, ,000.O O00 capital
stock outstanding
How the ownership OF less than per
cent Of the voting capital constitutes
control or a union nobody I'm Wall street
has ever been able to see, and the only
side Of the matter that ever was regarded
with any real interest in the financial
section was From whom was the stock
purchased and for what reason?
The announcement of receivership
Of the Bank of North America pro-
duccd no disaereeable sensation in
Wall street In fact the effect was OF a
reassuring kind. as the news set at
rest the rumors that had been in circu-
latiOn at the end OF last week. exag-
gerating. as such rumOrs usually go.
the significance Of the matter to which
tney vaguely referred From the state
ment of the bank commission Il was
plainly seen that the depositors would
not lose anything. and this. coupled
with the fact that liquidation meant
cnly the end Of a disagreeable incident.
gave rise 10 feelings Of relief rather
than OF anxiety.
Up 10 . o'clock the market advanced
with a considerable degree of vigor.
and then stopped. The advance was
largely at the expense Of the short in
terest, When the shorts who could be
forced into "a covering movement had
retired their contracts there was moth
ing 10 sustain an advance. and i'm the
last hour a short reaction occurred
ST CcuidIOrS who mad been largely in
Strumental n causing the decline last
week renewing thCir activity on the
dcwnwarl side.
The reaction in the last hour was ac-
oelerated by a rumor 20 the effect that
Union Pacific would in the near future
announce an issue of $35. 10000 additional
common stock. Nothing OF this kind had
been heard since last summer. and com
ing Unexpectedly the story exerted an uu-
favorable influence over the general mar
ket Denials came from authoritative
quarters. but these only mitlgated the
effect Of the rumor and could not entirely
remove IL.
Northern Pacific did not act well. II
was one OF the strongest features at the
opening, but stock was met with IN
quantity when the price reached 10. and
thereafter the bulls seemed to be much
more intent on realizing profits than on
adding 10 their lines The borrowing de-
mand indicated that the short interest
had been largely reduced. the stock being
freely offered I'm the loan crowd without
finding many takers.