Norwich bulletin., 1909-12-14
FINANCIAL AND COMMERCIAL,
TRADING sTAeNANT.
Fairly Comprehensive Showing of
 Strength, Despite DuIlness.


 New York, Dec. 13.-Beyond the mere chronicle of the fact of a desul- tory advance in prices of stocks today there was little of interest in the mar ket. The trading fell into absolute stagnation at times in the afternoon. The intense dullness was ascribed in part to the Interruption of wire ser- vice by the bad weather. Wall street Is not sufficiently dependent on the speculative moods of the domestic in- ternor for this fact to account ade- quately for the total suspension of ac- tvity at times today. The lethargy was the more remarkable on account of its effect on prices Feeble as the general demand was there was a fairly comprehensive show of sterngth by stocks. This was largely accomplish ed by the sympaehetic effect of dispro- portiOnate advances in a number of special stocks. The most conspicuous of these was Rock Island, which rose to 45 IA, the highest of the present year, and, in fact, in a period of sev- eral years. Transactions in the stock were on a large scale, but the expla- nations of the strength did not get beyond the stage of rumor. The re- cent entry into the Lehigh directorate of the dominant figures in the Rock Is- land property of course came Into re- newed discussion in connection with the movement The allegation that Wabash was to be concerned in the linking of the two properties also play ed part in the days discussion, as it has on former occasions. A new Sug- gestion was that the Rock Island pre- ferred stock might be retired in ex- change for bond issue and the prop erty put into the hands of the com mon stockholders. It is a peculiarity of the Rock Island organization that the preferred stock, which is but little more than half the volume of the com mon stock, elects a majority of the di- rectors of the company besides having prior claim to devidends. This priority of claim will rise to per cent. in 1910 and per cent. in 1916. The Rock Is- land company is a holding company which owns the stock of the Chicago, Rock Island and Pacific railroad, which in turn issues collateral bonds against the stock held by the Chicago, Rock Is- land and Pacific railway and. until re- cently of the St. Louis and San Fran cisco railway. The enormous control thus exercised by the Rock Island pre- ferred stock. itself a minority of the total stock of the company constitut- ed a striking example of the capabili- ty of this device for widespread power through the outlay of a minimum of capital. So striking was the example, in fact, that difficulty has been experi- enced in making wide market for the common shares. which can elect but a minority of the directors of the com- pany. A reorganization of the com pany form has been talked of at differ ent times on account of that. The operation of the St. Louis and San Francisco was avowedly prompted by the likelihood of an inquisition by the government authorities into the status of the company as then constituted. The reyersion of control of the prop erty to the common stockholders would rectify the excessive centraliZation of the present control of the company. The violent advance in Western Mary land securities pointed to another field for "deaP rumors which were left in the rumor stage, without authentic confirmation. A hardening of discount rates in London and Berlin. the ,secur- ing by the continent of the London gold supply and its sustained firmness of foreign exchange rates here modi- fled the effect of the New York weekly bank statement to some extent. For the same reason. opinions on prob able further reduction this week in the Bank of England discount rate were mixed. The rise in United States Steel to above 92 again was strong sustaining factor for the whole market. Call money touched 5 per cent. Bonds were steady. Total sales, par value, $3,778.000. United States twos advanc- ed 3-S and tile threes 1-s per cent. in the bid price on call