Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-31
BULLS AND Be AIRS

Special Dispatch to The Star.
NEW YORK, December ~1.-Whfie the
further pronounced weakness in Reading
on Saturday was puzziing to good many
stock market spectators, 1t is understood
that 1t is the result of the fact that at
about 100 a considerable amount of stock
passed from strong to relatively weak
hands. In addition to heavy profit taking
by some of the strongest investment and
speculative operators in Reading. it Is I'M
derstood that the same interests indulge in
short selling on liberal scale. Hitherto
these interests have generally been ex-
tensive buyers of Reading at about $50.
From intimations received curing the last
few days apparently they look for the
slump to go still further, and 20 not regard
the stock as a safe purchase for sub
stantial advance until it reaches about 10.
On the other hand, large stock exchange
interests which have been active in Reading
in some of the biggest movements con-
Quoted in that security expressed the opin-
ion last week that the stock could be
bought safely at about 1870. So far how
ever, the interests which are understood to
be heavily short and are looking for still
lower prices have been the biggest win
ners in all the campaigns conducted in
Reading.
Special significance was not attached by
| the large interests to the break in ST. Paul
on Saturday. Now that it is understood
that the holders of small amounts OF STOCK
will be able to subscribe to the pro rata
amount of their holdings it is belleved thaI
the tendency of the stock will be upward,
ra Their than downward 1t is Still the opin-
ion of some of the largest houses in the
street that Northern Pacific and Great
Northern will soon begin Try supstah-
tial recovery. Until the present iitiga.ion
against the Great Northern is settied. II Is
generally assumed that the movements III
that stock will be more or less erratlc'
Prominent inside interests, however. ex-
pect this litigation to be out OF the way IN
short time.
Some of the most active operators Will be
greatly disappointed if monetary conditions
do not appear considerably easie' within
ten days two weeks at the longest. Inc
decidedly freer offering of money on time.
which we noted last Saturday, was regard
ed as extremely significant and while there
may be furries in call money during the
next few days, it is believed that the quita-
lions for both call and time money VIII De
on a lower level in the near future.
Banking houses. while admitting that the
bond market is far from satisfactory. state
that there are signs of Improvement and
that they believe within the next two or
three months the bond business Will re
considerably better than it has been for
many months. If the rates for money are
lower, as 1t is expected they will be. 1t Is
pointed out that a very fair proportion or
the enormous disbursements to be made
this week will find its way into investment
channels.
The latter part Of this week or early next
week prominent interests in the Chicago
traction situation expect that negotiations
will be resumed for a complete solution Of
the traction problem. During the holiday
season little or nothing is being done. 1t
Is now believed that within a comparatively
short time the negotiations will be complet-
ed. when it will be possible to proceed with
plans for recognizing the surface com
| panies. 1t does not seem at all improbable
| that in due time there will be grand ANAL
gamati ton of both the surface and elevated