The Washington herald., 1907-10-09
STOCKS DOWN AND Up
Market at Outset Takes Bad
Slump, Rallying Later.
EFFECTED LOW PRICE SHARES
Chesapeake and Ohio Declines 2 IS
Points-HeuVy Buying Entire Day
Of Northern Pacific, sales Forming
One-fourth of Total Volume of EX-
change business During Session.

New York, Oct. SIN rather vivid con-
trast TO the stoaduy-maintained dulness
of the stock market for week past
changes in prices on the stock exchange
to-day were of kaleidoscope character
as those of the days weather conditions.
The market aU the outset was Inclined
to sel off upon proht-takiug, resultant
upon yesterday afternoons brisk adj
vance
But it soon became obvious That the
market was temporarily 90 De subjected
10 the influence OF two rather sharply
contendlnr forces. A definite selling
movement started in Chesapeake and
Ohio stock. which spread to number
OF other lower-priced railway shares. and
had its origin, apparently, IN liquidation
for the account Of Dutch holders OF
American securities. Tile gossip OF the
day had it that a certain degree Of dnan-
eial trouble had manifested itself in
Amsterdam and that this had led TO the
throwing over. among other things. %
American stocks. which are SO largely
owned u that market a custom pre-
walls. IN Holland. that is. SO far as is
known. peculiar 20 that country. for a
banking concern dealing in investment
securities 70 issue 70 those who purchase
securities from IT. its own certificates
representing the securities sold. the bank
retaining the securities themselves, in its
own possession.
One of These Houses.
It was one of these houses, according
10 rumor. although 10y no means a large
or important firm, that had become in
volved
Other observers declared to-day that
while there might Doe some little real
liquidation by foreigners, the bulk Of the
selling represented a renewal of specu-
latiye operation for the decline, pure and
simple. so conducted as to seem like for
eign selling.
Chesapeake and Ohio stock, before noon
to-day, had fallen . rs points. an un-
usually large decline FOR this security,
and while pressure was less active against
the other stocks OF similar class. they all
yielded under it.
On the other hand, there was heavy
buying through the morning of Northern
Pacific shares, transactions in the stock
Of the entire day forming. indeed, one
quarter Of the total volume of stock ex-
change business. and speculative atten-
tlOn was excited by the fact that one
commission house bought large proper
ton of all the Northern Pacific that was
sold The fall in the I0U-priced stocks
to-day was no doubt accelerated by the
rather poor report of the Rock Island
Railway Company. for the month OF Au-
gust. showing for the two months of the
fiscal year To date q decrease of $4,000
in net, despite a gross increase Of $685.
900, and the feeling became broadcast in
Wan street that tile large decreases In
railway net earnings since the first of
July have not been wholly due 20 the
operation of the new rule of the Inter
state Commerce Commission regarding
the standardization Of railway accounts.
Many Favorable Features.
There We're various favorable features
Of the situation to-day from q spccula-
tive point OF view. but the disposition of
the moment was so overlook them. The
drain OF money from the banks. If the
daily reports of the transactions of the
banks with the Subtreasury are any guide
10 the facts. is less 50 lar this week than
it was in the previous week, amounting
TO S4S9005, as against nearly 100000 in
Tba former D-rf0F