The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-02-26
PLAN FOR PACIF|CS
GETS HARD SETBACK
ABSENT OF CALIFORNIA RAILROAD
COMMISSION MUST DE
SECURED.
THAT BODY OBJECTS
RAs EFFECT ON STOCK MARKET.
but THE FINAL DEALINGS OF
TIRE DAY SHOW SOME
LITTLE STRENGTH.

NEW YORK, Feb, 25.-~Renewed
and rather general weakness in the
stock market today was attributed 10
al unexpected happening in the
course of the proceedings now UNI
DER way. and which Il was supposed
were on the point Of being success
yai to accomplish the divorce Of the
Union Pacific and Southern Pacific
railroad companies The assent Of
the State railroad commission Of Cali
Toruia had 10 be secured 10 the plan
of dissolution agreed upon by the
Union Pacific and Southern Pacific
companies, and by the attorney gen
eral Of the United States, The Sc
curing OF such permission from the
California authorities was looked upon
~ mere formality, but IL seems
that the desired permission has not
been granted. but directly refused.
In the scheme as previously settled
the Union Pacific was to buy from
the Southern Pacific Its holdings con-
etftutinE the total volume of stock Of
the Central Pacific company. The
Southern, Pacific also agreed to lease
70 the Central Pacific in it's due ca
pacfty as a Union Pacific subsidiary
what tn known as the Benecia Short
Line The Southern Pacific Joint use
to aiFr-v he Central Pacific clint 74se
Gk ALA terminal 1aSJIA&3@S OH t4Es it'ttS4
Union Pacific Declines.
The California railroad commission
holds that access TO the Benecia Short
line must be granted 70 all compel
ing tines Further the commission
objects generally to the plan Of
sale OF the Central Pacific lines from
Ogden to San Francisco by the South
ern Pacific to the Union Paei1ec and
recommends that the Central Pacific
he merely leased to the Union Pacific
for a long term Of years.
II remains to be seen bow much
Of an obstacle to the conclusion of
fhe existing arrangements is pre-
scented in all this and particularly
whether the action of the railroad
commission Of the State OF Califor-
MIA IL bar to any action that may
be taken by the federal courts. But
the effect Of the news on the stock
was TO produce "a sharp decline in
Union PacsFtc stock based upon the
idea that whatever may be the out
come q fral settlement Is indefinitely
postponed.
Some Strength at Close.
In the final dealings a little more
sfreneth was shown In the market,
and closing prices were above the
lowest Nevertheless. no sturdy rally
ing power was exhibited, and general
stock exchange sentiment WAS much
GISpAFitea, n taCt tnhG pore some
part in the current disbursement
was the announcement that certain
legal complications had arisen that
would prevent an Immediate ratiffca-
tton by the public service commission
Of the pending local subway con
tracts. %evert helese IL did not appear
that these complications were very
serious.
Sterling exchange auctuated within
narrow limits and closed unchanged
for the day. Call and time money
were little more closely held than
on the preceding day The foreign
markets though more irregular. were
fairly cheerful except in the depart
rnent for American securities. where
the declines on this side were neces-
sarily influential Nevertheless, the
fortnightly settlement in London
showed that the speculative position
in American stocks was greatly re-
duced.
The carrying charge for these
stocks until the next settlement con-
tfnued stiff, though less than that
prevailing two weeks ago
The Atchison railroad company
presented "a very satisfactory state
rnent Of earnings showing an increase
during the month Of January of ST.
s5s, 900 in gross earnings and $414.-
900 In net