The sun., 1907-03-07
FINlNcIaL lND Commercial.
WEDNESDAY. March g.

citemcnt that has only been equslled ol
surpassed on two or three occasions in
recent years. This was not becauss th'
market was thrown into a state OF panic
by a further active continuation of tha
declining movement that has now beer
in progress practically for seven months
but because OF feverish and sensational
mp and down movements in quotations
rapidly succeeding each other, viii ch gave
10 the whole market the appearance Of a
whirligig. Transactions in stocks reached
a volume Of >, $50, zoo shares. which of course
made a new high record total for the year
and represented larger turnover of stocks
than has been Witnessed since August 20
last year, when the stock market was
convulssd by the announcement 81 the
Hartman dividends. Right at the opening
to-day prices we're about at the same level,
although in some instances a little lower
than they closed yesterday afternoon.
Dealings were from the very beginning on
a large scale, the principal stocks chang
ing hands IN blocks Of several thousand
shares each. The market after few
moments rallied somewhat. but again fell
TO lower prices in the principal issues 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 low records
for the active stocks and reaching a pitch
Of extreme Generalization before the close
of the first hour OF the afternoons business.
There we're few If any particular features
in these early movements although especial
pressure was brought to bear against
Canadian Pacific stock and the quotation
for the security fell further from its final
price Of yesterday than did that of any
other stock in which transactions are
ordinarily large. The Brooklyn Rapid Tran
sit and some OF the other local franchise
stocks were also specifically depressed
because, presumably, of the drastic char
acter Of the public utilities bill that was
introduced in the Legislature to-day. IL
was observable, too, that. as was the case
yesterday, the Hill stocks and the Reading
common shares were not severely affected
by the decline. Reading only falling \ Of
a point below it's last price Of the preceding
day. This lent plausibility to the supposi-
ton 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 was actively circulated throughout
Wall Street, and so far as observed was
the sole pretext for another violent change
in the markets general character. A
furious buying Of the Reading common
shares set in which in the space of a very
little time advanced the price OF the issue
nearly II points. So great a rise in such
a prominent stock exercised naturally
a sympathetic effect upon other stocks
as we'll. There was a hasty retreat OF
operators for the decline all along the line,
with the result that in the concluding hour
and a half Of business the market rose
with even greater rapidity than it had
fallen and the final prices of
stocks exhibited gains for the most part
Of between one and three points
Whether OF not there was any truth in
the Reading rImor to-day was a matter
which usually we'll informed
people confessed themselves quite un-
and it must also be said that OBJ
servers Of this class usually coupled their
statements on the subject with the declara-
lion that they did not see how the truth or
Talsity Of the story altered in any material
way the general financial and business
sxigencies that have brought the stock
market to its present pass. II is of course
well known that the Union Pacific Railroad
recently bought a large quantity
Df the stock of the Baltimore and Ohio
DT ~
Of the Reading. which if il
should be coupled with transfer of the
holdings of the Reading purchased some
years ago by the Lake Shore Railway Com
)any would perhaps give the Union Pacific
! controlling voice in the Reading man
cement. Most people whose opinion was
Untitled 10 weight expressed themselves
o-day as believing that the Hartman
holdings of Reading were no more or no
ess than they were several months ago
md that the advance in the price of the
reading common shares was due solely
o drive al the short interest in the stock,
which, along with that Of general specula-
ion for the fall throughout the entire stock
market. is undoubtedly much extended
L the moment. The market to-day gave
many evidences Of being in an oversold
tate and under such conditions it is not
q all unlikely that the rally in prices which
vas to-day Witnessed may proceed con-
iderabIy further II is very clear, how
ver. that something more than a mere
'uying back Of stocks sold speculatively
or the decline ,is necessary for the pro-
Dngation of a general and substantial |
dvance in values. Presumably the money
ituation proper will be decidedly helped |
y such liquidation as has been witnessed |
n the market in the course Of the last fort
light. The fact is. however, that despite |
he enormous fall in stock market valIa-
ions since September last, bank loans, |
aking the country IA a whole, have not |
cen reduced, showing that the money |
eleased by Wall Street has been imme- |
ietely laid hold Of by commercial and |
lercantile interests for their own use, and |
,hile all this continues TO be the case it is |
ard to see how the money situation, 80 |
ar as Wall Street 10 concerned. is greatly !
ettered. IL is apparent, in other words, |
hat what the railroad companies whose |
ecurities are dealt in on our Stock Exchange !
eed just now more than anything else is |
lch a rela ration of general businesa "a