New-York tribune., 1909-12-28
UILD JUMP BY ROCK
ISLAND COMMON.
Sensational Furry at Opening
Leads to Stock Exchange
Investigation.

the movement which has had no parallel
for violence since the Northern Paciflc
panic, in 1901. that the governing COM
niJtse of the Stock Exchange felt con-
strained to take notice of II, and at
special meeting in the afternoon ap-
pointed committee. consisting of Ernest
Groesbeck. Frederick L. Eames and J. T.
Atterbury to make a searching inquiry
into the causes OF the sensational furry,
ir which many persons suffered serious
losses.
one Of the theories advanced to ac-
count for the movement was that 1t was
largely due TO bidding by representatives
OF London houses which had become
worried over the rising tendency of the
stock last week. as they had within the
last three months sold calls on about
100000 shares. against which they had
purchased one-half of the stock re-
quired. as is their custom. being thus
technically short of the remaining 10000
shares. These houses, according TO the
report. rushed their buying orders into
this market yesterday, as the London
Stock Exchange was closed, il being the
Boxing Day" holiday.
This theory. however. did not find wide
acceptance. IN view Of the fact that op-
zion contracts in London mature on a
certain day of the fortnightly settlement,
the next occasion being ten days hence;
and in view of the further fact that on
the entire advance. from SOS TO 81. only
$4,000 shares Of Rock Island common
changed hands.
THEORY OF BLUNDER ADVANCED.
Another report had it that through
some unexplained mishap or blunder the
interests directing tho manipulation of
the issue omitted 10 put in selling orders
70 counterbalance the buying orders for
the DAY. it being rumored that purchas-
ing orders for 400 600 shares had been
given and that it had been intended to
give directions for the sale of $4,000
shares. It was said in some quarters
that the movement was the result part
lv Of this omission and partly OF the de-
u1and from the London call brokers.
One Of the variants of the blunder
rumor was that a clerk had mistaken
1 60 for 10000 shares in giving out in
structions for buying the stock. and an
had erred in giving his orders for the
day Incidents which came to light,
however. seemed to indicate that there
might have been design III the forcing
Up of the price. II was recalled that
late on Sunday night information had
been conveyed TO some of the local
newspaper Offices by an occasional rep
resentaIive f certain men whose inter-
est in Rock Island is matter OF common
knowledge that announcement would be
made on Monday that the Rock Island
had secured control of the Lehigh Valley
Railroad and that it would declare a
10 per cent dividend.
Then, too. not only were there no sell
ing orders in evidence while the early
buying movement was under way. but
one broker was found VINO said that on
Friday the specialists had large selling
orders at - but that before the open
ing OF business yesterday he had dis
covered through personal inquiry that all
OF those orders had been Withdrawn.
What could have been expected TO be
gained d, an effort TO force d corner,
however. assuming that no blunder had
occurred. the Street could not compre-
hend Il is not improbabl that there is
Z considera ble short interest in Rock
Island common. but yesterdays move
meu1. although creating a panicky feel
ing which was reflected in the decline
Of - = points in the general list.
was IL no sense d bear panic
There is outstanding about $90oooo0J
of the stock. which does not carry con
=
was no scarcity of it for borrowing pur-
poses as was evidenced by the con
hdence OF the floor traders. who we're
practically the only sellers while the up
ward whirl was in progress, and sold
the stock short. The advance 10 81 had
taken only eight minutes. and in that
time the news had reached every Office
and d rood OF selling orders had been
rushed in. SO great as 70 end the upward
tendency and start the stock downward
al a precipitate rate
HEAVY BUYING ORDERS GIVEN.
From various sources il was learned
that a prominent Stock Exchange house
had distributed buying orders for yes
rerday among 4 dozen OF fifteen other
houses IN amounts Of 2.pDo to 5000 shares
each, and il was apparently the execu-
tion Of these commissions, the broker1
bidding against one another, which waa
the primary and principal cause OF the
excited movement at the beginning of
The days business.
Al m offices Of the Rock Island COM
pany nothing was known of the reasons
for the sensational movement OF the
common stock. Daniel -. Reid was at
nis country home. AT Iryington, where
he has been spending the Christmas
holidays, and some Of his associates said
that they did not believe he knew Of
the furry until il Was over.
Ex-Judge William H Moore when
seen al his Office. said: II arrived here
from Chicago al I1.15 o'clock this morn
ing. and on my arrival received my first
news Of Rock Island being in the mar
ket. Personally ] have not bought or
sold share of Rock Island stock in
months. ] regret this movement exceed
Isgly
The transactions in Rock Island COM
mon on the upward movement came out
as follows on the ticker tape. in one long
stFlng-4asB sharrs al rsp5s AGAINST i9a4