New-York tribune., 1910-01-05
FINANCIAL MARKET
CALL HONEY STRONG.
Southern Pacific Stock 1ctiUe
at 4dUancing Prices.


Transactions in stocks exceeded 1.OOO,-
0OO shares on a movement of prices that
showed decided irregularity and at times
marked weakness, though at the close
the larger number of issues were at net
gains as a consequence of heavy cover
ing of short contracts in the last hour
of business. Opening quotations were
under the final figures of the preceding
day, and throughout the chief part of the
session the general tendency was in the
directions of lower levels, declines be-
ing especially pronounced in Reading,
Amalgamated Copper and Rock Island.
The selling included liquidation for out
of-town account, and apparently was
based on the sharp rise in money rates
in Mondays market and uneasiness over
the attitude of the Washington admin
istration toward the railroads and cor
porations in general, despite the fact
that President Taft and his advisers
have not committed themselves to any
policy that can by the greatest stretch
of the imagination be interpreted as un-
favorable to American investment Sc
curities The president of a large rail-
road company and a participant in the
conference between the President of the
United States and the representatives
of the transportation companies made
the statement yesterday that the inten-
tions of the administration regarding
legislation affecting corporations need
not alarm investors or cause uneasiness
among companies that desire to do busi-
ness in d straightforward and orderly
manner.
Southern Pacific was consistently
strong throughout the day, and supplied
the only important exception to the
downward tendency in the early opera
tions, showing marked strength at a
time when other leading issues were
point or more under the closing in Mon
days market. Its final price presented
a net gain of 23s, the advance evidently
representing clique operations that in
duced active covering by the shorts and
attracted some buying for public ac-
count. While there were no news de-
velopments in Southern Pacific affairs
the Street had the rumOr that the rise
in the stock was due to the probability
OF rights in connection with a new issue
of stock, Notwithstanding the fact that
there was no good reason for the belief
that anything of the sort is contemplated
by the management Of the property
There was another weird report that
Union Pacific interests were buying the
stock on inside advice from Washington
that President Taft would recommend
that a railroad should be permitted to
own all a majority of the stock of
competing company, but not minority.
The Union Pacific does not own a ma
jority Of the Southern Pacific stock, but
with its holdings and those Of its friends
it is in absolute control of the property,
and is not likely To add to its stock
ownership through purchases in the open
market And il is not likely that Presi-
dent Taft entertains any idea of the
sort on majority and minority inter
ests.
The theory, however that the Presi-
dent would recommend a change in the
law governing control by one railroad
OF a competing line which would not be
retroactive encouraged bull activity in
the last hour OF trading, especially in
Reading. Southern Pacific, Norfolk
Western and Baltimore & ohio. Con-
solidated Gas and international Har-
vester were among tho strong features
me last named advancing more than q
points United States Steel common and
Amalgamated Copper, though closing
above their low points. showed net
losses, and the speculative community
appeared TO be bearsh on both issues.
Amalgamated was affected by the an
nouncement that the company proposed
10 close its Butte mines under certain
conditions, while selling of Steel COM
mon apparently was based on the idea