The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-03-07
Excitement Attends Sessions
of Stock Exchange.
SALES BREAK YEARS RECORD
Sensational Up and Down Movements
Make Traders FeveriSh, and FIuc-
transactions on Large Scale, Deal
ing Being Confined TO Big Blocks.


two or three occasions in recent years.
This was not because the market was
thrown into a state Of panic by a further
active continuation Of the declining move
ment that has now been in progress prac-
ticany for seven months, but because Of
feverish and sensational up and down
movements in quotations rapidly succeed
ing each other. which gave to the whole
market the appearance OF a whirligig.
Transactions in stocks reached a volume
of 2.3590O0 shares. which, of course, made
new high record total for the year and
represented a larger turnover OF stocks
than has been witnessed since August 20
last year. when the stock market was
COuvulsed by the announcement of the
Hartman dividends. Right at the open
ing to-day prices were about at the same
level. although in some instances a little
lower than they closed yesterday after
noon
Business on Large scale
Dealings were, from the very beginning.
on a large scale the principal stocks
changing hands I'm blocks Of several thou
sand shares each. The market. after a
few moments, rallied somewhat. but again
fen 10 lower prices. in the principal is
sues. than were touched at any time on
the day before. once more a recovering
movement set in, which again carried
values TO a new high range for the day,
and then again. shortly after midday. the
market broke with greater violence than
ever. making new Fow records for the
active stocks. and reaching a pitch OF ex-
IRENE demorahzatJn before the close Of
the first hour Of the afternoons business.
There We're few, if any. particular fea-
lures in these early movements, although
especial pressure was brought to bear
against Canadian Pacific stock. and the
quotation for the security fell farther
from its final price Of yesterday than did
that of any other stock IN which trans
actions are ordinarily larger.
Franchise Stocks Depressed.
The Brooklyn Rapid Transit and some
of the other local franchise stocks We're
also specifically depressed because, pre-
sumably. of the drastic character of the
public utilities bill that was introduced
into the legislature to-day. It was OBJ
servable, too. that, as was the case yes
terday, the Hill stocks and the Reading
common shares were not severely affected
by the decline, Reading only falling Il of
a point below its last price Of the preced-
ms day. This lent FEASIBILITY to the sup
position that an accumulation Of these
stocks had been going on. and. from a
speculative point of view, strengthened the
probability of the rumor which soon
started, that the Reading property had
passed into the control of the Hartman
interest. This story actively circulated
throughout Wall street, and, so far as OBJ
served. was the sole pretext for another
violent change in the markets. general
character. furious buying of the Read
ing common shares set in, which i'm the
space of "a very little time advanced the
price OF the issue nearly j points So
great "a rise in such "a prominent stock
exercised naturally sympathetic effect
upon other stocks as well
Operators Retreat Hastily.
There was "a hasty retreat of operators
for the decline all along the line. with the
result that in the concluding hours of
business the market rose with even
greater ra9idity than it had previously
fallen. and the final prices of stocks ex-
hibited gains Of from part of one to three
points
Whether or not there was any truth I'm
the Reading rumor to-day was a matter
concerning which usually well informed
people confessed themselves quite uucer-
tain. and e must also be said that OBJ
servers of this class usually coupled their
statements on the subject with the
declaration that they did got see how the
truth OF falsity of the story altered in any
material way the general financial and
business eXigencies that have brought the
stock market 10 its present pass. 1t is, of
course, well known that Union Pacific
recently bought q large quantity of the
stock Of the Baltimore and Ohio Railroad
Company. one Of the parent companies of
the Reading, which, If il should be coupled
with a transfer OF the holdings OF the
Reading purchases some years ago by the
Lake Shore Railway Company. would per-
haps give the Union Pacific "a controlling
voice in the Reading management
Reading Being Driven Up.
Most people whose opinion was entitled
30 weight expressed themselves to-day
as believing that the Hartman holdings
OF Reading we're no more or less than
they were several months ago. and that
the advance I'm the price Of ReadirE
common shares was due solely TO q drive
at the short interest, which. along with
that of general speculation for the fall
throughout the entire stock market. is
undoubtedly much extended at the mo-
ment The market to-day gave many
evidences of being in an ovcrsold state.
and under such conditions it is not at
al unlikely that tho rally IN prices which
was witnessed to-day. may proceed con
siderably farther. 1t is very clear, how
ever, that something more than mere
lrYNipgr I1p-- pf ufoplyc -r.,+
for the decline is necessary for the pre-
longatiou Of general and substantial
advance IN values.
Money Situation 10 Be HcIped.
Presumably the money situation proper
VIII be decidedly helped by such liquida-
tons as has been witnessed in the mar
ket in the course of the last fortnight.
The fact IS, however, that despite the
enormous fall in stock market valuations
since September ! last bank loans. TAX
ing the country as a whole. have not
been reduced showing that the money
released by Wall street has been imme-
diGtely laid hold of by commercial and
mercantile interests for their own use.
aqd while all this continues 10 be the
case IL Is hard 20 see how the money
situation SO far as Wall street is con
Cerned, is greatly bettcred.
II is apparent, in other words, that what
the railroad companies whose securities
are dealt in on our stock exchange need
Just now more than anything else is such
a relaxation of general business as will
put an end 10 that increase in railway
operating expenses which has gone on
so rapidly In the last year.
Railroads Hard Pressed
When some suggestion of these develop
merts begin TO be clear, and our railway
companies md il easier than they do row