The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-12-03
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Ir THOMAS q. sHOTwE1L.
$1SEE YORK, Dec. 7.--Decision By
Supreme Court OF the United
&fes that the Union Pacific could
~ Mold control of Southern Pacific,
~ surprise today to wafi Street.
Justice Lurton agreed with the
Tier Justices 1t meant q reversal OF
IS own opinion given several years
10 on the same point. The decis-
IN Is looked on as a very drastic
1ne and ia accepted as notice from
&&$ Supreme court that II will con-
fue the Sherman anti-trust strict
IT caused doubt AZ to the Minne-
~ rate case outcome, but removed
m doubt Of the anthracite decision
%3tIrh must, in the light of today's
%eciricn, be against the companies.
FROM . stock market point OF view
NJ decision is very bullish and will
III up market activity. 1t sent Union
actf3c bonds and Union Pacific pre-
Sxfed higher today, but had little ef-
~ al other issues
Gencral market was firm through
81 the session and some specialties
ofe higher, notably American Cot
Nh MIN AtAiLGd ht6iCS Iku0bGaE
aeee Specialties were UP on good
HrningE. The Southern Pacific bonds
1vanced because they may be re-
"a At par In connection with the
nrclAse by the Union Pacific OF the
SnfFAi Pacific line between Ogden
IA San Francisco. as authorized by
upfeme court today. Central Pa
<c stock lis the collateral behind
Heee bonds. Union Pacific preferred
0e because OF the mistaken notion
at the stock can share IN any spe-
- districution of assets by the
1I0n Pacific.
ERAn<iard Issues Strong.
kAndard issues were strong early
the day. The decision caused q
Try decline, after which there was
feccvefy. but the list sold down
the close.
NeGrcgations have always disclosed
" true values of companies involved
"a the buiiish feature OF the Union
ctflc decision lies in the fact that
" treasury house of the Hartman
1ee1n will new be laid open =
~ the Central Pacific owns the
e5khcrn, Pacific terminals in Cali
tniA In addition to other things ne
9rarY for the proper operation OF
r. southern Pacific, acquisition by
S$on Pacific Of the Central Pacific
D between Ogden and San Fran
- cannot be made by buying Gen.
~ Pacific stock
~ piece Of property will have TO
6AnGatned for on the basis Of Its
xricxi valuation. This wiz d,s-
GuA III true value, and give a stansi-
TT f1F measurtug the market value
either properties OF the system.
lit N not q shadow of doubt that
Ktlt she. shown that the Union Pa
lae a5lasem with its tremendous capt.
1EAtten " very much undercapi-
gtxe< E4le advocates Of physical
8aunxt0p are about to have =, sho "
RN k1GntsaTtii aetor1ish the wurld.
1sffhefnone, serious difference Of
ntn1p exists az TO Union Pacific to
1Ye Tia any distribution o. assets.
- late y. IA. Hartman always con-
- that the preferred stock was
~ emitted TO anything but l per cent
Etde1ds out Of each years earnings
"a u PAR In the event OF liquidation
thesooznpany.
opinien Of Judge levsft.
THIS opinion was based ON tho opsa-
sof fudge Loyett at that time coun-
LII for the roAd. but now head Of The
IEfrtnan system. William Rockefel-
and other insiders took ,he view
~ the preferred should share with
= cotnsnon In any extra distribution
tAca9h the charter states II shall
&Ho Ohly Its per cent annually. Wall
Sx4ef 3till remembers how William
Srkefeiler and his f...ends bought
n1on Facific preferred all the way Up
no lust before Harriinan's death,
"a how. II broke sharply when Rookie
57fter 3scvr~rcd sfsnt p. I'll. tfnrrifnnr
~ the principal u. Tier on the ad-
~ th2ff time a plan Of distributing
n3GM. Pacific assets was Formulated on
~ &he0Ey that Hartman was dyinf
&SxinnAn discovered tnis plan and
n1t 1efabie excitement reguited in
stock market. But now that the
Npre4ne court has ordered Il atstri-
N1ton Of Southern Pacific stock II is
Notable that the old plan will be re-
Sred.
# TodAy's decision forces the concur
tan that there viii be valuable dis
|thsaticnE by the Reading company.
IN. the Jersey Central when the an
efacife decision is finally handed
pwn. Wall Street has not forgotten
~ Standard Oh ,ns Tobacco stocks
11ted by the show down OF assets
iced when they were split up ey
~ courts decree.
Number OF shares sold today. $751;
x4s; q year ago, 232.5a5. r-
M Par value OF bonds Sold today. s2,-
1000; L year ago, 35,ess,000.