The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-03-07
WALL STREET NOTES
Street Scented Something
New in Deals in Reading.
H. C. FR1CK FIRST SUSPECTED

of the StOck-First National Bank
Interests Believed to Have Taken
Proht-HiI stock Strength OF Par
ticuIar Interest 10 the Market.
New York. March G.-When the market
opened almost every trader seemed TO
have reached the conclusion that some
thing OF unusual interest was under way
i'm Reading. Just week had elapsed
since the stock had made its lowest point
i'm the decline, and dealings in it had been
conducted on an enormous scale at gen
orally advancing quotations notwith-
standing the extreme weakness of the
rest of the market In six business days
the transactions had reached the eXtraor-
binary total of about 2.1lO000 shares.
representing stock of d par value Of Sl01,-
00).G00. or 80 per cent more than the full
amount of common stock outstanding
All sorts of rumOrs were set afioat about
a change Of control, the general tenor OF
these being that Mr. Frick had succeeded
in acquiring a majority OF the stock, and
that this would imply the Introduction OF
a more liberal dividend policy, but. OF
course. il must have been evident even 10
those who put forth such arguments that
So long as Baltimore and Ohio and Lake
Shore retain their holdings the acqui-
sition of a controlling interest by any
other road or individual is practically inn
possible.
II there has been anything else 10 ac-
count for The strength OF Reading il was
the result of powerful manipulation pos
sibly 10 facilitate the sale of other stocks,
and IL may be found in the fact that the
anthracite trade is now in better cOndi-
ton than at this time in any past year.
That some Of the dealers in privileges
We're not greatly impressed by the
strength of Reading appeared from the
fact that in the first hour. when the
stock was quoted at about 10. displaying
at the time an upward tendency. calls
good for the remainder of the week 1T
IFS were Uf1C-ed at the rate Of so for
2oJ shares. The buyers of these prvi-
lcges. of course, did not nave % wait
Ions for their profit
Rightly or wrongly. "a great many peo-
pie In the street believed that the First
National Bank interests have largely in
creased their holdings of Reading ln the
past week. Those interests undoubtedly
bought large amount of the stock on
the rise that began at about % I'm -S14
and eliminated at 15i in January last
year. That they took profits around the
hign level there can be- little doubt for
selves in Wall street, and when they do
experienced operators are not likely 70 let
them slip. Il is one Of the undetermined
questions of Wall street morality whether
when big interests see profit 81 100
points or so. 70 Is the greater sin 10 seize
OF % take The money Uf the merchants
who want il to buy after such a rise.
When. one by one. the stocks that had
supported such. for instance, as Canadian
Pacific and Pennsylvania. gave away,
beaIish operators renewed their attack
upon Reading about noon. but only %
make the strength of this stock stand out
AN the more couSpicuOuSly. Throughout
the day Reading remained the great mar
ket mystery. all the more IWpeEetrable
by the various cOujectures receiving no
confirmation.
a thunderbolt from out Of clear sky
could not haze surprised the bears half
so much as the advance in Reading soon
after the noon hour. For suddenness and
rapidity # beat a Kansas twister beyond
all comparison. and the shorts were so
completely swept away that they We're
more than glad 20 clutch chance or
safety by covering their contracts after
the price had gone UP to ABOUT Is. Il
was surprising how many brokers could
be found vino. totally forgetiul of their
earlier uttcrauCcs. proclaimed their con-
ddence I'm the value of the stock and We're
ready 10 go on record with predictions
that before long Reading would cross
Pennsylvania 10 a level in keeping with
It's intrinsic worth" Interests we'll in
formed on Reading affairs said they had
not heard that IT. q. FriCE or Hartman
had secured control Of the property, but
they were very much inclined 20 doubt If
those who hold the balance of control
would be willing TO part with it at any
thing ike the present level of prices.
Few brokers were willing to believe the
rumor that the Lake Shore had sold its
holdings Of Reading. but in some places
FL was argued that the holdings of the
Frick-Harriman interests with those OF
the Baltimore and Ohio would easily
amount 10 "a control. and that since the
Hartman interest I'm Baltimore and Ohio
IS now large nothing more is really nee
essary. The point. however. on which
there can be uo doubt is that those best
informed ON Reading affairs are among
the greatest bulls on the stocks.
The strength Of the Hin stocks attracted
particular interest on account of the re-
ports apparently emanating from trust
worthy sources that Hin had modified his
views regarding the business outlook, al
though not TO the extent where be was
willing 10 appear on record rs predicting
that the anticipated reaction would not
occur Apparently. the view now taken
by the president OF the Great Northern
is that in anticipation Of a business re-
verse and the preparations taken TO meet
it may act Is q very wholesome proven
tive, and that after all. none may occur.
The volume Of transactions for the day
far exceeded all recent records, and made
good the prediction that the decline would
exhaust in one or two very active DAYS.
OF the total of over 900. 600 shares. Read
ing contracted more than three-quarters
OF a million, or nearly one-third of the
days total.
BOSTON STOCKS.