Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-03-07
PLUNGED IN READING
Wall Street Insists That Harri-
man is Buying Heavily.
FINANcIER DENIES REPORT
Yet the Stock Jumped on a Tremend-
Gus Demand.
ANOTHER RUMOR AS TO MORGAN
Most Exciting Day in the Street in
Six Years-A Wild Day On
Change.
ANOTHER RUMOR AS TO MORGAN

NEW YORK March 7.-Sensational
buying of the shares of the Reading Com
pany yesterday gave Wall street it's most
exciting experience since the Northern Pa
cific contest of six years ago. Reading
had been strong in the face Of generally
weak market all through the morning ses-
sion of the stock exchange, when there de-
veloped an enormous buying movement in
the shares which carried the price up more
than points in half hour
Up to the close of the market there was
not hing official to show the source of the
purchasing orders, but a persistent rumor
was in circulation that E. H. Hartman
was buying the stock with the object of
acquiring control Of the property and that
Mr.. Hartman was taking all that was
offered in the open market, in addition to
the holdings of H. c. Prick, which he was
said to have purchased privately.
1t was said also that the Reading stock
held by the Lake Shore had been turned
over to Mr.. Hartman, that he would
have absolute control. 1t was pointed out
that Mr.. Frick, having become a director
of the Pennsylvania Railroad Company.
would desire to dispose of his Reading stock
and that, he is friendly with the Harri-
man. interests, he would be likely to sell
to them if they cared to buy
The reports as to Hartman buying were
circulated generally throughout the finan-
cial district and We're given credence, in
spite of the lack of anything official to con-
firm them, but there were other rumors.
One of these was that ]. P. Morgan & Co.,
who formerly dominated Reading. were
buying to resume their former position in
the property; another was that the New
York Central which owns the Lake Shore.
was adding to the Lake Shores holding of
Reading and a third attributed the DUVlnG
to the Delaware LackaWanna and West
ern. Still another rumor was that Mr.
Frick was buying back stock that he sold
sometime ago at higher prices.
All Mystery.
All the time the stock was coming up eff
forts We're made without success TO discover
the source of the buying and to obtain
either denial confirmation of the various
reports in circulation. At the offices of
banking houses associated with the differ
ent interests mentioned in the rumors all
knowledge of the movement was denied
but at the same time it was said that indie
pendent action to secure the property might
have been undertaken without the knowl-
edge of the firms interviewed. Mr. Harri-
man. who is in Washington, was Informed
of the use of his name in connection with
the Reading transactions, and he then made
statement through his secretary to the
effect that he was not interested in Wall
street and did not care to be denying all
the rumors originating there Further
than this nothing official was obtainable
The brokerage houses handling the buying
orders were numerous, and their identity
gave no indication whatever to the per-
sons for whom they were acting.
The trading in Reading reached the ex-
tremey large total of 136, 800 shares, or
about 'one-third of all the transactions on
the stock exchange for the day. The mag
nitude of the sales seemed to preclude the
idea that an ordinary manipulatve maneu-
Yer for higher prices was being executed
The blocks traded in were large, ranging
up to 1900 and 5000 share lots with one
block OF 10000 changing hands at 12J.
The Market Demoralized.
The strength in Reading attracted atten-
ton early in the day, owing to it's being
in sharp contrast to the weakness in the
list generally. The market opened with
rally from Tuesdays decline, but before
noon the better tone gave way to re-
newed bearish. sentiment, and the decline
became violent.
The feeling on the exchange bordered on
decentralization, with extremely heavy liqui-
dation and declines for many issues to the
lowest point of the year. The Hartman
shares and the stocks in what is called the
Standard Oil group were notably sensitive
to pressure, and this fact emphasized the
strength of Reading and the relative firm
ness of the Morgan and Hill stocks.
This condition of the market held until
shortly after l o'clock, when the sensa-
tional buying of Reading began. At that
time the stock was selling at 116h Sud
denly it developed that all of the stock Of
fered was being taken on an ascending
scale of prices. Lots of from 1000 to 5000
shares were traded in rapidly, and the
price rose in about half an hour to 125
This sudden turn after the recent weak
ness in the market served to strengthen the
entire list, and general rally was soon in
progress which continued up to the Close
which was strong and active, with quota
tons in the main at the best of the day
Prominent in the recovery were Great
Northern preferred, which closed at 1JG15
an advance of 53s, Southern Pacific, which
closed at So; rise of 2, and Northern Pa
cfic, which improved 2B, to 1891.
B. and O. Involved.
In connection with the Reading rumors
interest attaches to the fact that the Balti-
more and Ohio, in which Hartman inter-~
ests have very large holdings, owns a to-
tai of $50, sec, 800 of Reading, divided be-
tween common, first preferred and second
preferred. Lake Shore holds. or did hold.
an equal amount.
The Reading Company owns the entire
capital stocks of the Philadelphia and
Reading Railway Company, the Philadel-
phia and Reading Coal and Iron Company
and the Reading Iron Company, $14, 800
600 of the outstanding $27, Az, 500 capital
stock Of the Central Railroad Of New Jer-
sey and controlling interest in the CAPT.
tai stocks of various other companies OPP
Grated by or affiliated with the Philadelphia
and Reading Company.
The capital stock of the Reading COM
pany authorized and issued is $14O Oc0 OGO
of which $2S,000, 600 is per cent noncumu-
lative preferred, $40, 100000 second 4 per
cent noncumulative preferred and $4,000
900 common stock.