New-York tribune., 1912-12-03
STOCK MARKET REVIEW
Opens Firm-Harriman Merger
Decision Surprises Traders.

Yesterday was an important one on
the New York Stock Exchange so lar
as the current events and news OF the
day figured In the fluctuations OF prices
of securities. 1t was the day scheduled
for the convening of Congress. the re-
ports OF the earnings of several rail-
roads, for the meeting of railway hre-
men to make wage demands, for large
December interests and dividend dis
bursements and for the meeting of the
Supreme Court and possible rendering
CT decisions in important cases. The
Supreme Court rendered one important
decision in the case Of the Hartman
merger suit, which reversed the opinion
of the United States Circuit Court at
st. Louis, which rendered a decision on
June "a, 1911, adjudging that the own
ership of The Southern Pacific stock
was not in violation Of the Sherman
law. The view of the stock market on
the first announcement Of yesterdays
Supreme Court decision was the selling
off of Union and Southern Pacific
issues. There was recovery later.
however, when the traders began to
accept what had first been considered
q bear argument as bull factor. 1t
was reasoned that the segregated
American Tobacco Company and
Standard Oil Company stocks had
reached a higher market value after
their separation than before, and that
the Union and Southern Pacific stocks
not only might sell higher, but there
was a possible melon cutting by the
Union Pacific when it comes to dis
tribute it's Southern Pacific holdings.
Southern Pacific, II was figured, would
be stronger as an Independent organi-
zation than as a part Of the Union
Pacific system. The rendering Of this
decision yesterday was rather unex-
pected. as the decision looked for from
Washington was one in the Minnesota
rate case, or the Anthracite trust case.
The stock market opened yesterday
with considerable strength, and for the
first half hour or so activity was gen.
orally distributed among some Of the
specials and a few of the standard
Issues. The announcement Of the en-
gagement of more gold for import was
accepted as a favorable indication Of
an Improvement abroad. In addition to
that. the foreign stock markets were
better, and there was generally cheer
full exhibition of trading sentiment both
here and abroad. After the first hour
of business the market became quiet,
and the subject of the Supreme Court
and the probable decisions absorbed the
interest In the Street. While money
continued to figure considerably in
transactions, the fact that it did not
show higher tendency on day when
dividend disbursements and interest
had to be taken care Of was accepted
as a more favorable than unfavorable
aspect. While there is not much pros
pect of easy money, it is generally ac-
cepted that the rates probably will not
show heavy expansion from this time
on. The market remained with quiet
tone until the announcement Of the de-
cision in the Hartman merger suit
when there was a general selling move
ment in the Pacific and Hartman
issues. Both stocks sold off sharply.
The general market received ample
support. and both Union and Southern
Pacific recovered very easily after the
first spasm of selling had exhausted it
self. Union Pacific preferred on the
days trading made gain of 3A points.
The loss on the common at the close Of
the market was 3s Of point, while the
loss in Southern Pacific was 20 Of a
point. Most Of the gains of the day
were made by special issues; American
Cities leading with over q points. while
American Snuff on transactions involv-
ing 1900 shares, showed a net increase
of points. The volume of trading was
not sufficiently heavy to be counted as
an active day on the Stock Exchange;
the number of shares totalling about
862,875. Call money for the day did
not touch the high point of last week.
Most Of the call loans made were on a
basis Of II per cent. while 16 per cent