New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-23
REVIEW OF The
STOCK MARKET
Upturn Follows Victory
by Southern Pacific in
Oil Land Case.

After three hours Of dull and narrow
trading. the market was quickened yes
terday by the Supreme Court decision
favoring the Southern Pacific in the
oil land case, which advanced that
stock over three points and renewed
activity in the rest of the list. While
traders continne in their present state
of mind any decision from the highest
court of the country UNFOLDING the con-
tention of a railroad is considered the
best of omens. The comparatively
brisk dealings of the last two hours
brought the total of shares changing
hands to around $4,000, the best for
over two weeks. Southern Pacific bonds
were also advanced on heavy dealings
and Rock Island issues continued ac-
tive, so the total of the days bond
business reached the high figure Of
$4.O0O000.
Decision that pipe lines carrying oil
of others or delivering it to the re-
iineries of others were common car
riers was not handed down until after
trading hours. The victory of the gov
eminent in the reversal Of the Com
merce Court in the intermountain rate
N''s'N RAoO W a. NV maui hHNNH NIiNiA
the late afternoon. The Interstate
Commerce Commission in attempting
to exercise its right to allow railroads
20 charge a higher rate for short
than for long haul had divided
the country between the Rocky
Mountain region and the Atlantic Coast
into zones, and this blanket order had
been held beyond its authority by the
Commerce Court, which had said that
the commission could act only in regard
to the reasonableness OF specific rates.
Ownership by railroads Of oil lands
valued as high as S700,000,000 was in
volved in the Southern Pacific case de-
cided by the Supreme Court. The par
ticular action at issue was brought by
individual claimants and was thrown
out on the ground that the railroads
ownership could not be attacked eX-
cept directly by the government. 1t
was held improper that a continued
cloud should rest upon such titles by
Subjecting them to attack at any time
when minerals, such as oil, might after
ward be discovered. Technically, the
government is left free TO begin d suit
if il can establish that the railroad
committed fraud in obtaining the land.
Practically this seems barred by the
courts opinion that it was the Land
Offices duty to decide as TO the nature
of the ground covered by the patents
il issued
Southern Pacific shares advanced
rapidly on fairly heavy trading. Over
$4,000 shares were dealt in, and at the
close they stood nearly 3l2 points high
er at 974a. The bonds were also traded
in at higher prices. the convertible 5s
being bought in large blocks and chang
ing hands to the amount OF over
100000.
Rock Island issues were lower. Dis
cussion continued of possible suits to
block the proposed reorganization by
non-assessing holders Of the collateral
As of the railroad and by the owners
of the 35,000-odd shares Of the under
lying railway held by the public Rock
Island Company shares fell lower to
1%4 for the common and 3 for the pre-
ferred, and the collateral is on deal
ings that amounted to nearly 81 100000
par value went 10 the new low record
of 283.. closing at 301s.
With the arrival of gold bars at the
Sub-Treasury, further engagement OF
81 100000 in gold from Paris was made.
Exchange rates recovered in part from
their abrupt decline of last week. De-
mand sterling ended the day at 4.8S20
10 4.8S25. % points above Saturdays
close. Call loans renewed at per cent,
against IA at the end of the week, but
otherwise local money rates were un-
changed