New-York tribune., 1908-01-03

News DEVELOPMENTS both favorable and an
favorable influenced the stock market yesterday
at the opening of the years business Inc
bad news. which included the announcement ot
the Seaboard Air Lines troubles and the report
of legal steps by the government against the
Union Pacific system, operated 10 depreSS thS
market in the first hour: but the Consideration
given later to the significance of the reduction
of the Bank of England's minimum discount
rate resulted in an Improvement of sentiment
reflected in general price advance whlca con
tinued practically until the end of the session.
profit taking in the last half hour bringing hhai
prices TO a trif1e under the highest of the day
The news of the impending receivershlp Tor
the Sesboard Air Line was unexpected by the
financial district. although the annual report OF
the company, issued last week. had fore-
shadowed possible crisis in the affairs OF TINS
road of tempestuous history. The Seaboard mas
been a sufferer by the anti-rairoad actlVitles or
the states in which its lines are operated, and
the first disposition was to regard its insolvency
as the probable forerunner of a number OF re-
ceiverships of roads in the South and other parts
of the country in which the state AUTHORITIES
have been jealous in antagonism to the rail-
roads. but this idea was soon abandoned, in
view of the known fact of the Seaboards weak
ness ever since its formation
The report from Washington that the Depart
ment of Justice was considering the bringing OF
proceedings to sever the Southern Pacific from
the Union Pacific, on the ground that the two
roads are parallel and competing, had only
temporarily bearish effect That the Union Pa
cihc would resist to the utmost an effort of the
sort however is understood III the Street 10 be
the fact: for, although the control Of the South
ern Pacific proper would not seem to be essen
tal to the integrity of the Union Pacific system,
the Southern Pacific controls the Central Pacific,
which is the Union Paeific's outlet from Ogden
TO the Coast at San Francisco and the Union
Pacific will every endeavor to retain posses
sion Of that vital link.
The incident which turned the market from
decline to advance was, already noted the
reduction of the Bank of Englands rate from
: to 6 per cent. That action had not been
pected to be taken for at least another week,
and the course Of the banks directors was
interpreted indicating their knowledge of
substantial improvement in conditions here.
Other indications tending to strengthen conf
dence were afforded in the virtual disappearance
of the pfemium currency, which has existed
since the latter part of October, and in the
ing tendency of the call money rate, which from
90 per cent early in the day steadily declined
until il touched 6 in the middle of the after
noon.
The decision of the State Superintendent Of
Banks TO require average summary of the
condition of state banks and trust companies
of the close of business Friday of each
week marks the institution of a highly i'm
portant reform, and will put end to the old
and We'll founded complaint that the weekly
statement of the associated banks does not ade-
quately represent the banking position in this
/ city. Incidentally ii will make impossible in
/ future any Juggling in the nature of shifting
loans and cash between member banks and
affiliated institutions Whether not such
operations have ever been practised cannot def
nitely be known. but there have often been
rUmors Of the sort.