Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1902-09-07
THE WEEK IN STOCKS,
COLLAPSE OF STRIKE DELAYED ny
SENATORIAL JoBBERs.
WAS A SUGGESTIVE INCIDENT.
The Wild Turmoil in Reading Attri-
buted by Wall street to the Bid
d1nE OF Rival Interests.

NEW YORK, september b--tSpeCldl.j-
The Posts review of the week, says:
The strike is, Of course, disintregating,
but its collapse is probably being delayed
by the impudent interference of the sena-
pretty well understands the ways of the
statesmen in question, smiles YEARLY at
the talk of their present disinIerested
move in public interest
The wild turmoil in Reading railroad
stock, in the middle Of this week was
an odd, and in several respects a sug-
gestive, incident. It is probably because
Of last years Northern Pacific episode
that Wall Street cannot rid itself Of the
notion that whenever the enormous trad
ing and the recklessly rising prices pre-
vail in a given stock, two or more rival
interests must be bidding. regardless Of
the cost
HALLUCINATION UNDERSTOOD.
The hallucination is easily understood.
When the market for Northern Pacific
shares had parted company with all re-
strictions of sanity, old-fashioned people
declared it to be impossible that serious
fnanciers were paying such prices. To do
so, they argued, would have proved utter
loss of sense and reason. Yet that is
precisely what was taking place. 1t is
not easy to convince crelulous Wall
Street that an action once caused by I'M
usual combinations Of circumstances was
not a rule of conduct soberly adopted in
our high finance.
Reported purchases of Reading by the
Pennsylvania have revived the outsiders
puzzled query, where all this purchase
money comes from. It is no matter Of
surprise that simple minds have resort
ed in despair to he theory Of an in
exhaustible well Of capital. a mountain
Of, unused riches. storehouse OF ready
money to whose back door the 'syndi-
cate need only send its cart when it
thinks Of buying another $100, 000, 000 pro-
perty.
NOT USING THEIR OWN MONEY.
The truth is it requires considerable
acquaintance with the mechanism of
finance to be able to face the undoubted
fact that these lavish buyers are not
using their own money In payment, and
that they have not the slightest intention
of holding the purchase at their own cost
and risk. They are borrowing from the
banks. on comparatively short term loans,
to close the deals, and they expect that
the generous public will put UP the money
to reimburse the banks. Thus far. the
operations seem to have work out sue
.cessfully, all but the selling to the public.
Logical puzzles in the public market
are not confined to the buying of corpora
lions. More than one simple soul has
worried itself over the catchwords Of the
foreign exchange market.
& TRADING ON CURB sBROADENED.
Trading on the curb considerably broad
ened, following the lead Of the Stock
Exchange market. Northern Securities
monopolized most Of the attention, being
marked up nearly eight points, but subse-
quently losing a third of the gain, on
sales of 10000 shares. Rock Island issues
also rose sharply, the common gaining
about eight points and losing nearly half,
while the preferred stock and bonds were
buoyant.
United States Realty shares were strong
and were taken in considerable amounts
for inside account, while the Copper
shares at the close Of the week were fea-
lures OF strength. Some of the other
stocks were reactionary under liquidation
sales.
Seaboard Airline IS showing the effect
Of continued liquidation because OF lack
of Developments in the much-talked-of
Southern railway deal.
NEW SECURITIES ARE DULL
The sharp rise in Rock Island issues
coincident with the announcement tnat
the strike readjustment plangwas assured
well illustrated the point that there is
but little demand at the present time for
new securities, except such as are fully
Endorsed by the investing public. Most
of the buying on the rise was Of a manip-
ulative character, and when the top was
reached the price sagged under profit
taking sales.
New Distillery and United States Ship
building Issues showed a lack OF demand.
sDistilling shares declined two points on
sales Of 300 shares. and United States
Shipbuilding SIS sdropped five points to so
on an order to dispose of ten bonds
Later they rallied four points on a. hans-
fer OF five bonds.
NEW STOCK FAVoRITE.