The Washington herald., 1913-03-18
Lower PRICES
AGAIN PREVAIL
Union Paci6c-Southern Pacific
Muddle Hangs Over
Market.
GENERAL BUSINESS FAIR
Scarcity Of Railway Common, with
SO Bid, 80 Asked-Adjournment
Friday and Saturday.
BY I. A. FLEMING.

rnday ana Saturday.
BY 1. A. FLEMING.
Another effort on the part of the Union
Pacific officials must be made to solve
the tough proposition of eliminating sl2s,-
10000 Southern Pacific stock from its
treasury in such a manner as not to sac
rifice it. and to accomplish best result:
in securing through connections destroyed
by the dissolution of the long-standing
merger between the Southern Pacific and
the Union Pacific.
All plans so far have been unavailing
The Attorney General approved one plan,
provided it was acceptable TO the Cali.
fornia State commission, and it was turn
ed down cold. A modified plan on the
same lines was set aside.
Brilliant jurist that he is, Presiden.
Lovett, of the Union Pacific, is up d
stump-at least for the time being.
Wall Street wants this matter settled,
and that right soon. 1t wasn't this great
block Of stock tied up SO that it will not
be threat on the market; it wants the
entire affair closed before May 10. the
date upon. which the Supreme Court will
undertake naming receivers for the two
companies unless the divorce is then COM
plete.
With this threat hanging over the New
York stock market. with Germany and
rance drawing SOlO DN fnllllOHS. II
is rather remarkable that stocks hold
as well as they do The certainty of
tariff changes. coupled with the uncer-
tainty as to what they will be. is another
market influence.
But general business continues salts
factory; the distributing business. as we'll
as the manufacturing industry. is only
restricted by tariff possibilities: railroad
earnings are good: money is working
.asipr nj 10
on the street.
The administration is going slow and
with a certain measure of sureness that
is encouraging and is causing some re-
vision OF opinion.
For some reason or other the Supreme
Court. always moving at its own pace.
still holds the Minnesota rate case in the
hollow of its hand. 1t was confidently
expected yesterday. and now ii will not
come until after the Easter vacation Of
the honorable court
With the matter still unsettled. the
bears had reason to expect better re-
suits than they obtained in stocks yes
l. rday. Union Pacific lost l IA; Steel.
IS: Canadian Pacific on foreign SELL
ing, is; Reading. 3-4: California Oil
! IS: Copper and Smelling. IS; Lehigh
Valley. 81; Nipper, l Is; Pittsburs
coal preferred. .. and Mexican Oil. 4
points, Colorado Southern and Texas
Oil were both higher
McReynoIds willing.
Attorney General McReynolds is put
ting no stumbling blocks in the way or
the Union Pacific-Southern Pacific SET
tlement. He is perfectly willing to give
the official o. *. to anything that will
divorce the two companies, provided II
suits the California Commission and the
lower court. s. Is. Chaplin & Co, "
New York. have this to say as the
cause OF the failure TO reach Sn agree
ment:
The Trouble.
'Banicia. or Banicia cutoff which is
.chief cause of the trouble in arriving at
satisfactory dissolution of the Union
Pacific Southern Pacific merger, is a very
expensive four-track water leveled road.
built by the Southern Pacific from Sai.
Francisco to connect with the Central
Pacific at Sacramento. whose older two
tracked road between those points is
eighty miles longer than the Banicia
cutoff. and is very extensively operated
because of heavy grades.
I'm order to maintain the advantages
OF operating over this Banicia cutoff,
the Union Pacific endeavored to secure
a traffic agreement with the Southern
Pacific. The Western Pacific. which
also runs from San Francisco to Sacrs
mento, however. claimed if such was
allowed there would be no effectual dis
solution of :he Southern Pacific merger.
Its claims for equal traffic rights over
this Banicia cutoff or the same traffic
terms as the Union Pacific having been
sustained by the California State Rail
1Cad Commission and the St. Louis Cir
emit Court, and this is the cruX OF
the whole tangle preventing the Union
Pacific and Southern Pacific to carry
cut their plans.
Therefore, any new plans which will
he satisfactory TO the California COM
mission and the Circuit Court must in
clude the above Banicia cutoff privi-
leSes to the Western Pacific or any
other competing line in the State OF
California. Moreover, any new plan
must offer a much lower public sub
scription price 10 Southern Pacific stock
than the recent plan
w. B. Hibbs' Views.
Its your move" s2ys Attorney Cen
eral McReynolds to the railroads, in the
Union Pacific-Southern Pacific settle
ment, and he proposes to busy himself
with other questions until the railroads
come across This does not betoken an
attitude of hostility. by any means, nor
even of indifference; it's all he can do
for the present.
The Supreme Court has declared that
a certain end must be accomplished
the ways AMI thereunto are left to the
devices of the parties to the unlawful
merger They got themselves into the
fix and must get themselves out of it.
The device. however, must be approved
by the government and be acceptable in
its details to the lower court. The Of
tenders have until May 10 to work out
q plan.
IF through unwillngness to comply
or incapacity to devise, the required re-
suit is not accomplished, the railroads |
are to 20 into the hands of a receiver. |
However, 1t is not the opinion here |
that the court would refuse reasonable |
extension o. time for carrying out its |
mandate, if by so doing great loss would
be inflicted upon innocent stockholders. |
Optimistic views of the outcome are |
held. simply upon the ground that way |
out must be found. and therefore will
be. 1t is unthinkable that situation |
will be allowed wherein slS.0oo of
Southern Pacific stock is to be thrown |
on the market
..The new administration is quite will |
ing to aid i'm honest efforts to meet the |
courts requirement and prevent unset |
Element OF business. Mr.. McReynolds is
ready for propositions"
BID for Common.
The Official closing of Washington Rail-
way and Electric common stock was 81
Iii ,opa oHered There were Seyerall