The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-23
FINANCIAL AND COMMERCIAL.

Mlxcd tondoncios appeared to govern
the stock market to-day There ~oro
very largo transactions 10 two prominent
groups of stocks, tho Eric and Reading
shares and tho securities represented
hero mado notable game In price; but
tho buying that accomplished this did
not seem TO spread to other quarters, savc
In moderate degree to tho shares OF some
OF the minor anthracite railroad properties.
In the early part OF the session tho market
was definitely weak under the depressing 6
news from Portsmouth, selling by traders
who wore endea voring to bring about the
usual Tuesday reaction and by the uneasi-
ness or feigned uneasiness expressed by
many SPECTATORS on account OF the violence
of the rise 10 Reading common stock. This
stock advanced with great rapidity from
the opening OF tho market to its highest
proc OF record and level nearly 4 points
higher than that at which 1t closed yestcr-
day. The impression was perhaps at
one timc goncral that tho movement was
due to the enforced covering OF long
standing short interest in tho stock. and
that an attempt at a corner" was among
the possibilities. Tho effect Of such an
operation, particularly at such high range
Of security prices as now rules, would natu-
rally be disastrous, and fears regarding the
ma tier led to selling Of stocks upon what
was a. one time a rather active scale. Care
full vcstigation failed to reveal any ground
for the idea as described, There IL fair
but not disproportionate short interest
In Reading stock, and the substantial reason
for the advance In the security IL duo to
the recognition by various corporations
and private capitalists OF the present and
prospective earning power Of the Reading
property, which will no doubt entitle
It to be placed within two years at the
furthest upon a per cent. dividend basi,.
Tho corner" theory regarding Reading
was, however, finally dispersed by the rise
In the Erie issues and by tho 1t, as It
gradually became obvious. that .hc sup
posed corner" must obviously include
not only the Reading but the Erie shares.
The disposition was for time tn attribute
the movement IN Eric b mere speculative
buying Experience testiCts, however,
that such movement as took place In tho
Eric stocks to-day, especially whom what
Wall Street knows as the character Of tho
holdings" Of tho stock IL 70 we'll under
stood. usually has something substantial
behind 1t. There has rover been any
doubt that 1t is the final destiny Of the Erie
COMPANY to be lodged in the hands Of
some one or perhaps more than one Of
the larger Eastern railway eystcms.
After there was reinsurance regarding
the move in Reading the tons Of the market
became stronger; but selling, apparently
mostly for the account Of spectators for
the fall proceeded freely. so that at the
close declines wcrc fully as common as
advances. The short interest In the market
which, according to the testimony Of trust.
worthy observers, il now greater than 1t
has been at any time for six months. has
accumulated by reason Of the unwilling
ness Of many professional spectators to
behave on general grounds that the present
high level OF prices can be maintained,
and specifically upon pessirnistic views
concerning the outcome OF the present peaoe
negotiations between Russia and JAPAN
The outlook at the moment for a cessation
admitted, gloomy; and yet there wore not
wa nting Indications during the day that
the last word on the matter has not yet
been said and that compromise upon
the matters in dispute may be arranged.
These lndlCatlOns, however, EuS5eu diInO6t
unnoticed. though the prices Of Russian
and japanese bonds. British consols and
French rentcs wore lower to-day because
of what was thought to be the poor peace
prospects. Sales of stock here for foreign
account only slightly exceeded purchases,
and appearances are certainly that
failure Of the peace conference will be at
tended by only the smallest amount OF
liquidation in this market Of our securities
held ahroad. Wheat prices were stronger
to-day because Of renewed advic,s "a to
the damage done to foreign crops. The
weekly Government crop report was no
less favorable than its immediate fore
runners, s.c.ing that while harvesting Of
spring wheat he'd been delayed a little by
the recent rains, the high condition Of all
the leading grain staples particularly of
corn. was maintained, and that corn In par-
ticular was doing extremely we'll Tho
event OF interest in the metal markets was
the announcement that very large |lock
of raw copper had been sold at 10 cents a
pound for December delivery and the fact
that bids of ,sls ents for spot copper werc
bringing only mcagcr offers.
New York Stock Exchange Sa,cS AUG. ~.