Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-08-22
Peace Conditions Showed in
the Dealings Today.
FOREIGN MARKET w FAX
LONDON HEAVY IN SYMPATHY
WITH THE SITUATION.
However, Reading Scored Note
worthy Rise on Huge Transactions
transfer of Control.

Special Dispatch 10 The Star.
NEW YORK. August 22.-F'or the first
time during the deviating course of nego-
,iations at Portsmouth 10th Russian and
Japanese bonds showed pronounced weak
ness In the foreign stock market today.
thus giving color to the latest pessimistic
advices from Portsmouth with regard to
the outturn of the negotiations being con-
Quoted there.
The general London stock market was
heavy in sympathy with and because OF
the same reasons which depressed Russian
and Japanese bonds, but the selling In this
market for foreign account WAS relatively
considered small. not being much In excess
of 10000 shares. While the indicated rup-
ture of the peace negotiations was named
the most influential factor In the market.
IL was the commonly accepted theory in
professional circles that the very striking
advance of Reading common stock had
more to do with the reaction in the general
market than any other factor
Notwithstanding the uncertain drift OF
prices elsewhere. Reading. on huge tranSac-
tons. scored a noteworthy rise. When such
a movement that which has taken place
In Reading during the past year occurs
Wall street is never satisfied with such
simple and prosaiC explanations as might
be deduCed from mere considerations of the
equities and earning powers of the prop
erty in question.
The Reading Earnings.
1t Is roughly estimated that Reading
Is earning fully 10 per cent upon its
common stock. but even such evidence of
prosperity does not provide to the Wall
street reflection of a sufficient explanation
for the market status of the stock. No
other specific causes for the further strlk-
ing rise of the stock could be obtained to-
day. but in their absence rumors attained
currency that the New York Central and
Pennsylvania companies would jointly take
over the contro! of the Reading through the
issue of collateral trust bonds.
As these companies already jointly. II in
directly. control the Reading property.
there would seem to be no good reason
why they should further clinch their hold
ings of the stock. The injurious effect of
the rise of Reading. so far as the general
market was concerned. were caused chiefly
by a notion that the stock might be in
cornered position. There is no doubt that
ing. and. for that matter, there Is very
large borrowing demand for stocks in all
quarters Of the market.
Present Course Of Speculation.
Speculation at the present time is by no
means all In one direction. and in fact
brokers report great difficulty in filling the
requirements in the loan market of those
of their customers with bearish proclivities
The striking rise in Reading extended TO
more or less degree to the other Anthracite
coal stocks. including the Fries. In fact.
the reports which carried the Reading prop
erty in the hands of the New York Central
and Pennsylvania included also in their
scope the Erie Lehish Valley and Ontario
and Western.
Under some circumstances It Is Impossible
to place any limitation upon the Wall
street ina ginaton- While the stocks men
toned and the more less closely allied
issues were advancing the remainder of the
railway list was comparatively dull and
the dealings there showed irregular but not
really weak tendencies In fact, with the
coup of the day the market was relieved of
the obSesSion that corner had been Gre
ated in Reading common. and a much
frmer tone developed in all quarters.
Wisconsin Central Stocks.
The Wisconsin Central stocks We're again
conspicuously strong. but there was no
more definite an explanation of their course
than has previously been the case. Persons
who ought to be in a position to he ac-
quainted with the situation of the property
disclaim any knowledge of a radio ii change
in its status. The industrial and misceIia-
neous stocks. along with the local traction
shares. moved in conformity with the mar
ket at large.