The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-08-23
oossfP, az. WALL sTREET.
About one-half tho days trading wac 10
Reading and Erie, .''.- ''' .---".". 100 I.

Reading and Erie, ..'.- .' .---~. 80 ~
While large part OF the buying OF Erie
had highly professional appearance. tho
inspiration for tho sudden outhurst of activity
In tho stock at new record prices. following tho
spectacular move In Reading. apparently
came from banking quarters. The Eric
ISSUES have been accumulated for long time
by banking interests. Some time ago II was
estimated that 400. 900 share, OF Erie had been.
taken out OF tho market by certain banking
interests for the purpose OF turning the con.
troll Of the property over to the road, which
have control OF Reading. This line Of stock
is 81 pposed to have cost about 10, In addition
to this heavy accumulation Of Erie by banking
interests very large lines Of the stock have
been taken out OF the market by capitalists
who have made great deal Of money In the
coal roads. and who are very confident OF the
future OF Erie. Among the men who have
bought Erie for the future are n. G. Frick
Norman B. Resm and Marshall Field. They
are also large holders OF Reading
The Erie convertible u. which are con.
vertible into the common stock at 50. moved
up with the stock, selling at new high level
III. These bonds. Of which $4,000, 900 arc
outstanding. sold - low a. seH this years
They were largely distributed to country
banks below par. and they now show very
handsome profit to tho purchasers: II Is
believed that the next 70 ries Of Erie converti-
bles will be convertible into the common
stock at 90. ..,,..
The speculative community 10 very often
misled as to the character Of the buying Of .
particular stock. Buying that sometimes
has q highly professional appearance 10
really Of the very best character. This was
notable In Reading last year. when the stock
was belns accumulated for certain interests
In thA IN "a vFaA
or four days. before Reading had sold at So
one broker bought on the floor 90, 900 shares
OF the stock. The buying had very little
effect on the price. The greater part OF the
selling Was BY traders. Tho stock was bought
90 easily that the Street believed that the
transactions were lar gely manlpulative. But
it developed later that this entire line OF
10000 shares was actually taken. out Of the
market. And this stock. 1t is believed. is still
out OF the market, and is not likely TO be sold
at this level.
The market was all Reading In the morning.
In transactions that amounted to 100000
shares in the fret hour the stock advanced
rapidly from 1883. to mex. Everybody had
orders In the stock and the accumulation OF
orders to buy or sell In lots Of several thousand
shares was 80 large that It was very dimcult
to execute orders Of less than thousand
shares Tho rest Of the market. meanwhile.
which had been more than points In the six
hours Of trading beginning with Monday
morning. was without reflection In other
stocks OF the Pennsylvania group. In Penn
sylvania and Baltimore and Ohio tho trading
was merely nominal. On the floor there was
a story that q prominent politician was hea Willy
short OF Reading. This story has been re-
peated at various times ever since the stock
crossed par. The trading element did not
like the one sldedness Of the market and went
In to sell stocks around the room the moment
tReading reacted from its top price at the end
OF the frst hour. Reading reacted very
rapidly, selling down from ll"X to NIX In
the course Of a few minutes. In the general
list the weakest stock was Union Pacific,
which declined easily from lash to is4k.
The Reading movement was resumed In the
afternoon and the price was carried UP to
a new high level at mex. Toward the close
it reacted again to iis. II was then that
Erie was taken UP aggressively and moved
rapidly from around 20 to 5lX. The trading
in Erie was of much the same character a.
that In Reading. Enormous blocks OF the
stock came out at steadily advancing prices.
the volume Of the trading increasing as tho
stock advanced.
The mana ger>pf one Of the wire houses
was exhibiting the marvels Of the place to
Western visitor the other day. The tour OF
inspection ended IN tho wire room. Wner6 tne
telegraph instruments were ciicking OF mes-
sages and orders from Western Offices, The
broker explained what an elaborate wire
system was at the service OF the house. and
ne asked the visitor II he had any message
that he would like to have sent West. The
visitor said he would take advantage Of the
opportunity to send a line to a friend about
the market He gave the message to the
head Of the wire room Just before leaving
the office. After he had gone the manager
discovered that the message was to town
about 1000 miles from the farthest Western
ONCE reached by tho FIRMS wires and that
the telegraph tolls were s342, The manager
paid for the message. but he has been very
careful since in describing the scope OF the,
wire system to visitors from the far West
One Of the active traders has made 81 .5Oo-
600 In the market In the past year. One OF
his friends. In speaking Of the traders heavy.
purchases Of stocks last year. says: 1T
takes lot of courage to buy stocks at thete
prices when you know that profits have been
taken on big lines of stock that were bought
30 or 10 points below these prices. You have
to think twice before you take stocks OF the
hands Of people who are selling them at
profit Of 40 points; f.