The New York herald., 1870-01-22
FINANCIAL and COMMERCIAL.
WALL STREET,

sENsATloN In ROCK ISLAND.
Inc street had been nlled with rumors for month
past OF an nverissus OF stock, and when this story
was asserted quite positively few weeks since the
Juo'iant bears" forced the price down to lolh. but
reaction came when nothing now was developed
concerning the overssue and the price went back to
1oSA. The story was hereupon repeated ana the at
'eention OF the Governing Committee OF tne
stock Exchange was called 10 tne mattor.
That body held . meeting to-day, and che
fact having been ascsrtainod by the confession
OF OF the oflcaIs Of Lhs road that the company
had issued two millions Of new stock last June, de-
oided upon peremptorily striking Rock Island from
the cali OF stocks at tRe board. The excitement
upon this announcements was very great The bro
kers in the Long Room were apprised OF the &C
tton OF the committee, and were, OF course. re-
Quired to suspend their dealings in the forbidden
ehares, at least In the Long Room. whicn ia gov-
srned BY the rules Of the Stock Exchange. The
crowd poured cut upon the sidewalk In front Of
the building and business was there resumed In
Rock Island. Tho stock, being an acnve spscula-
Ave 1vorite, Ii 10 bo found In nearly all
the brokers' ofhoss In Wall street; hence
the failure OF the Stock Exchange mandate
70 repress dealings In it. Tne price, which had
opened at 1o64 ana risen to 1851, now descended
TO 1854 but seemed 10 touch bottom at that figure,
and several times reacted to 1o4, but closed finally
NJ 1854 1881. The original report was that 40 600
instead Of 90 900 shares was the amount Of the
issue. The effect OF the admission from the oom-
pany that the lattor amount had been issued seems
70 have been discounted the decline Of the stock
from l38 last summer It's present price. Had not
this been the the excitemenS might have led to
panic In the stock to-day. but when the first furry
was over its market became steady and compare
lively quiet. The striking OF the stock from the list
Is only In conformity with the laws or the board.
which provide that
The Stock Exchange win not call or deal in any
active speculative stoca OF any company registry
o whose stock Is not Kept in some responsible bank
trust company or other satisfactory agency and
Wnlcn snail not give public notice at the time OF
establishing such registry OF the number OF shares
30 entrusted to be registered, and shall not give at
least thirty days uolies through the newspapers
0no III writing o the FrcsldenL OF the Stock EX-
cnange, OF any intended Increase or the number OF
ehares, either direct or through the issue Of con-
SettlDe bonds, ana shall not at tue same time give
bonds Is about 10 be made.
On the other hand, the company claim that they
virtually gave notice u the Stock Exchange in q
printed copy OF resolution adopted at meeting OF
the directors last june wnen the new Issue was au.
horized. The resolution referred Is as follows-
whereas 1t appears to the STOCK olders OF the Chi
cago, ROCK Island and Paoihc Railroad Company, by
tne report or tho Board OF Directors thereof tne 81
this day. that thcre B now, and within the next
tweve months VIII bc needed about the sum OF
$40o0Ooo ior the purposes OF said company in the
compilation and perlnanent improvement OF Its line
0t road and for other purposes; and whereas the
Board OF Directors have asked OF he stockholders an
expression OF opinion az TO the best method OF ras
ing such sum as may be nuc"ed Us aforesaid there
Resolved. That IN oar opinion tho said Board of
Directors or the Executive Committee thereof should
raise such may be needed as aforesaid py the
issue anu sale OF Donos or stock. both, their
Judgment the best interests o. said company de-
Mand.
This notice was not however, in compliance
with the terms OF the bylaws, and hence the
Of
thirty day rule is ono which can be easily
obviated whenever the directors OF any road
are speculasively inclined. In selling STOCK .short
they can borrow for delivery mach as they intend
70 Issue anew. Then tho required notice can be
given and the new stock returned for the borrowed
otock Doubtless the full elrcct Of today's proceed
ings has not been felt for action OF the Governing
Committee was taken about tho end OF banking
hours. Tomorrow it Is thought there Will bo some
trouble In the shifting OF loans on the ostracsed
stock which Is deprived Of o regular market II will
be remembered that Erie was similarly 81 tuated
when expelled from the can. Some OF the express
stocks were likewise suspended for time. and now
Rock Island makes the latest OF the enforce
Ment OF the rule requiring complete registration
OF all the shares dealt In Mt the Stock Excnange
Before affairs had reached this pass the stock
market had been In general strong, but duh. There
was exceptional activity In Northwest, whioh rose
TO 73H for the commsn and 80 for the preferred,
upon the supposed discovery that heavy operator
had sent largo quantity OF the stock to the transfer
oflce for reissue smaller certificates. But after
the demonstration in Rock Island the whole ntten-
ton OF the street was directed thereto the rest
Of the list became duh and heavy and finally do-
olned. Indeed when Rock Island was banisleu to
she sidewalk the group Of brokers followed it ana
the market was virtually established outside tho
hu,l hA ton han hoou oAslv atbo
proposed new issue Il wabash Ii q Viola
uon Of the bylaws requiring thirty days pre-
liminary notice. The Governing Commltsee has
taken no action upon IL yet and probably
will not, as the now shares are deliverable only to
she holders Of tho present stock and aro th crsfor
IN the nature OF stock dividend, which has be.n
already ruled admissible IA the easo OF Pistsburg.
The object Of tho rule is to prevent new Issue pre-.
judicial to the interests OF stockholders
THE MONEY MARKET
was easy at Ave 10 seven per cent on CALL the latter
being the exceptional rate. Commercial paper con-
unues more currcnt ana discounts for prime double
names range from IN to 10 ner cent Foreign ex.
change was rm on the basis Of 1o9 for prime bank
ers' sixty days sterling, the demand for Saturdays
steamer being quite unaer the
DECLINE IN GOLD.
The heavtness OF the gold market was still moro
marked to day. and The price OF the precious metal
fell to 12ol, at which some small amounts were sold
towards the close Of business in the Gold Room.
The duness OF the gold market in strong contract
TO the activity OF few weeks since. The cliques
In changing their tactcs the ''pear'' side after
"buling" the prico to 1231s, have been eminently
successful.
GOVERNMENTS LOWER.
The government market was directly sympathetic
with gold and followed its fluctuations with close
precision. The prices at the opening were about as
81 the close last night and renamed barely steady
during the boards. In the afternoon. when gold
had iallen to the lowest pony Of the day, govern
monts weakened and declined to tho following final
street pricos:-United States currency sixes. 11o4
= llo's; do. 1851, registered 1l71 l17h; do do.
coupon, 1l7,s ll72S; do. i've twenties registered,
May and November, ll4h lis; do. do 1862. coupon,
do. lis lI5ls; do. do. 1854, do. do. 114x lis;
DO do, 1885, do. do, 114K 115; DO. do registered,
January and July, l13H ia; do., 1885, coupon, do.