The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1908-01-03
WALL STREET NOTES
Bad News Offset by Reduc-
tiOninLOndOn Bank Rate.
SOUTHERN ROADS AFFECTED
Propaganda be-
iieved Responsible for Seaboard
ReceivershIp-Readi shows IN
crease-AetiOn Against Union Pa
cIfic Believed 20 BE Contemplated.

New York. Jan. 2.-Tke opening OF busi-
ness for the year with recelvership pro-
ceedings, and on a holiday at that, was
followed before the opening of the market
to-day by a reduction in the Bank of
England discount rate. one development
marked the first steam railroad receiver
ship since the beginning of the strinsency
and indicated to the financial community
a continuance Of not an accelleratlon Of
the business reaction.
The other development marked the first
reduction in the English bank rate since
the trouble began. and indicated a decided
Improvement in money conditions. To the
extent that the course of market prices
displayed financial opinion, the improve
ment in money conditions was considered
of more Importance than the reaction IN
business.
It was Well appreciated that the basic
conditions leading up 10 the SeabOard re-
ownership were confined TO a consider
able extent to one section OF the country
Southern roads, of course. being suffer
ers from the anti-eorporation propaganda,
which has affected the earnings OF all.
As the natural result Of the attitude Of
public officials confidence in railroad Sc
curities has been shattered 10 a greater
extent in the case of Southern roads than
elsewhere, the effort to borrow money
made generally more difficult, other
things being equal. and the earnings
power more seriously affected by hostile
legislation.
Because. Of an understanding Of this
situation the stocks Of Southern roads
alone sold of under the new Seaboard
receivership. There were considerable
early losses in the Southern Railway
shares, and in Louisville and the Allan
tic Coast Line. Yet the Southern Rail-
way situation had been so long under
stood that the stocks later recovered
part Of the early losses.
The movement in Reading was &C
CELEBRATED by a statement OF November
earnings, which gave the bulls something
additional 10 work with. The statement
shows an increase Of $4,000 in November
net. and an increase Of $1,000 in the
years net, and was all the more of a
bull card for the reason that other roads
have made very poor demonstrations Of
November earnings. The tip Of an ad-
vance TO par was again in circulation,
and attracted a number Of traders.
Traders who made market commit
ments on news from Washington or on
guesses as 70 Washingtons action were
inclined to be bearish. They had, as
support for their contention, a revival OF
the old report that the government was
to bring an action to separate Southern
Pacific from Union Pacific. but apart
from that they professed 20 believe that
Attorney General Bonaparte is 10 cut
loose with a number OF entirely new
prosecutions against railroads and in
dustrial corporations.
Apologists for the administration, they
argued. had contended so stoutly that
the administration was not responsible
for the stringency, that the administra-
ton leaders were actually beginning TO
believe II. They would demonstrate this
belief, these traders said. by proceed
ings that would tend still further 10
brighten investors.