Los Angeles herald., 1907-03-07
Exciting Scenes Recall
Experience of Six
Years Ago
More Than 100000 Shares Change
Hands, the Stock Going Up
Eight Points In Thirty
Minutes
BY Associated Press.

NEW YORK, March 6.-Sensational
buying of shares of the Reading COM
pany today gave Wall street it's most
exciting experience since the Northern
Pacific contest of six years ago.
Reading had been strong in the face
of generally weak market all through
the morning session of the stock ex-
change, when shortly after l o'clock
there developed another buying move
ment in the shares which carried the
price up more than eight points in half
an hour.
UP to the close of the market there
was nothing to show the source of the
purchasing orders. but a persistent
rumor was in circulation that e. ii.
Hartman was buying the stock with the
object of acquiring control of tho
property and that Mr.. Hartman was
taking all that was offered In the open
market in addition to the holdings of
H. c. Frick, which he was said to have
purchased privately.
Other Rumors Rife
1t was said also that the Reading
stock held by the Lake Shore had been
turned over to Mr.. Hartman SO that
he would have absolute control. 1t was
pointed out that Mr.. Frick, having
become director of the Pennsylvania
Railway company, would desire to dis
pose of his Reading stock and that as
he is friendly with the Hartman in
terests he would be likely to sell to
them If they cared to buy.
The reports as to Hartman buying
were circulated throughout the f1nan-
cial district and were given credence
in shape of the lack of anything Of
fetal to confirm them, but there were
other rumors.
& Co., who formerly dominated Read
ing, were buying to resume their for
mer position in the property.
Another was that the New York Gen.
trail was adding to Lake Shore hold
ings of Reading, and third attributed
the buying to the Delaware, Lacka-
wanna & Western. Still another rumor
was that Mr.. Frick was buying back
stock that he had sold some time ago
at higher prices.
Banks Make DeniaIs
All the time that the stock was going
up efforts were made, without success,
to discover the source of the buying
and to obtain either denial or confirma-
ton of the various reports in circulation.
AT the offices of the banking houses
associated with the different parties
In the rumors all knowledge
of the movement was denied, but at the
same time it was said that independent
action to secure the property might
have been undertaken without the
knowledge of the firms interviewed.
Mr.. Hartman, who is in Washington,
was Informed of the use of his name in
connection with the Reading transac-
tions and he then made statement
his secretary to the effect that
he was not interested in Wall street
and did not care to be denying all the
rumors circulating there. Further than
this nothing official was obtainable.
The brokerage houses handling the
buying orders were numerous and their
identity gave no indication whatever
as to the persons for whom they We're
acting.
The trading in Reading reached the
large total of 736,50O shares,
or about one-third of all the transac-
tions on the stock exchange for the
day. The magnitude of the sales
seemed to preclude the idea that an
ordinary speculative maneuVer for
higher prices was being executed. The
blocks traded in were large, ranging
up to 1000 to 5000 shares with one block
of 10000 shares changing hands at 125.
The strength in Reading attracted at
tention early in the day owing to its
being In sharp contrast to the weak
ness in the list generally. The market
opened with a rally from yesterdays
decline, but before noon the better tone
gave way to a renewed bearish senti-
ment and the decline became violent.
The feeling on the exchange bordered
on Generalization, with extremely
heavy liquidation 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 firmness of |
the Morgan and Hill stocks.
This sudden turn after the recent |
weakness In the market served TO |
strengthen the entire, list and a gem
eral rally was soon in progress which |
continued up to the close.
The capital stock of the Reading |
authorized and issued is $14O,- |
)O0, 900, OF which $2S, 100000 is 4 per cent |
preferred; $4,000 600
4 per cent non-cumulative pre-
ferred and $7,000,O00 common stock.