The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-23
FINANCIAL NEWS
AND COMMENT
Stocks Favorably Affected by
Southern Pacific Land
Case Decision.
ANOTHER RATE RULING
IntermOuntain Litigation Is
Passed Upon-More Gold
Taken for Export.

Stocks moved perceptibly yesterday out
OF the rut in which the market had been
held for weeks. The departure was not
extensive and may not be significant, but
1t was an interesting response to the
direct stimulus OF news. The Supreme
Courts decision confirming the Southern
Pacific company's title 20 vast tracts OF
extremely valuable oil lands In California,
unless the Government should be able to
prove fraud on the part Of the company
in obtaining possession, was the imme-
diate cause Of a decided development Of
activity and some strength on the Stock
Exchange IN tho afternoon. The display
OF strength was not made throughout the
list. Indeed. II was aggressively mani
tested only In the case OF the Southern
Pacific shares but their vigorous rise en-
Outraged hardening In other quarters.
Professional trading seemed still to ac-
count for practically all the dealings and
it takes more than professional opera
tons to promote a sustained tendency in
quoted values. Nevertheless Il was worth
noting that the share list did overcome
the inertia acquired by waiting on the
Eastern railroad rate decision, even
though the show OF animation may have
been only temporary. and that this exhi-
biton was inspired by some favorable in
formation on which very hopeful con-
struction was placed. The close was gem
orally firm 10 strong. with the transactions
In southern Pacific stock constituting al
most n third of the market aggregate.
Until southern Pacific affairs came
into prominence. attention was largely
/ engaged with the course of the Rock
/ Island securities. The per cent. bonds
and the refundng Is were relatively
firm. allowing for profit taking sales The
! collateral trust As. which are most af-
| fcctcd by the reorganization plan, fuc-
tuated vigorously over an extensive range.
| but ended the day on recovery There
was much talk about the probability OF
| opposition among tho collateral trust
/ bondholders to the terms of the scheme
/ for adjusting Rock Island finances which
has been agreed upon by the protective
committees. but it is doubted II opposition
| can prevail over the necessities OF the
/ Rock Island situation.
| Approval has already been won for
the thoroughgolng way in which the com
mlttees have provided for the simplifca-
ton Of the Rock Island structure and
placing 1t on firm foundation. 1t Is
presumably capable of demonstration that
the interest OF the collateral trust bond
holders will be served best in the long
run by accepting the financial assistance
Of tho Rock Island company's stockhold-
~
the bondholders
There was little doing in the security
markets abroad. Europe seemed to he
waiting upon the highly important new
financing which is pending abroad, mean
ing especially the first instalment of
French Government borrowing and the
large Brazilian loan. Wall Street eX-
pressed some curiosity as to whether or
not London would make any response
overnight to the rather momentous rul-
ings which the Supreme Court handed
down at Washington. both before and
after tho close of the market.
The Southern Pacific case naturally lent
Itself to fantastic calculations OF values
saved to Southern Pacific shareholders by
the courts opinion that the company &
patents to oil lands were valid unless IL
could he shown that they were fraudu-
cntly obtained in the knowledge that
the lands contained oil when the patents
were issued. or more consequence was
tho feeling which the decision engendercd
that tho Supreme Court was still the
} guardian Of property rights guaranteed
by the Constitution and the laws of the
country. Under other circumstances than
those which exist in the present conditions
OF politics T. is conceivable that the courts
decision might not be so striking but II
, seemed yesterday to have Implications OF
, n most encouraging nature for a com
nunity more than a little depressed BY
the harassmcnt to which corporate values
have been subjected.
IT was not until very late in the day
hat the long pending decision in the
, intermouNtain rate cases was handed
down. IL was difficult to the point of i'm
possibility 10 elicit then, even from IN,
best informed, any views rs to the effec'
A likely to he had by the Judgment o
. the court, which sweepingly sustained thu
Interstate Commerce Commission In es
tablishlng percentage relations between
j long and short haul rates with regard I,
o various traffic zones into which the com
, mission arbitrarily divided the country
II was obviously a decision against thu
y Western railroads, which brought tho orig
9 inal action for relief from the lons
s and short haul clauses OF the 1910 amend
@ ment TO the Interstate commerce act. bu
:, it was not easy to answer the question a
, ITO how dctrinentally railroad interests
V werc affected Moreover II Is n decision
4 modified by tho findings in the Easter
rate case.
& Some recovery was made In foreigl
o exchange. demand sterling closing onl!
IS p little below i.SSli. further engage
e ment of sl,50O,OO0 gold bars was an
. nounced for shipment TO Paris, but II wa
= not indicated that the engagement wa
II negotiated on the present exchange basis
u At the same time 1t may have been tn
r result Of the large increase In the export
IS able supply OF gold through tho Govern
mcnts transfer Of bars from Denver L
o the local SubTreasury.