The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1909-12-28

Rock Island Gyrations
Well, But Refused to Move
Up Afterwards.

iand episode in today's stock market
afforded an opportunity to test the
stability of the present speculative
position The resisting power shown
! by the market to the alarming intima-
! ton carried by the sensational gyra-
tons of Rock island served as as.
surance that the present position is
not easily vulnerable. Fears that
such condition might be growing
up has been fostered to some extent
| by last weeks dropping tendency of
prices. 1t there had been any real
crumbling of speculative confidence
this morning the shock would bave
Iprecipitated violent liquidationand a
slump In prices.
In few stocks where there has
been persistent speculative activity
since the general market has grown
quiet, there was hasty unloading and
a sharp break in prices The gen
eral market however, stood up wen
under the shock, then rallied. The
conclusion is forced that the heavy
tone last week was due to the pause
in the activities of speculation for
rise rather than to any active pres
sure to sell.
That control of the situation is still
exercised by the powerful interests
back of the market was demonstrated
clearly by the markets action today
Whatever may be the explanation o
the Rock Island episode the movements
IN this stock was most extraordinary
A rise of 81 Il points in five minutes
i'll the price of railroad stock hayinc
a substantial volume and widely
disseminated market is rare occur
renee. The fact that it was FOLLOWED
in almost as little time by complete
relapse is almost without precedent
The implication Of distressed short
Interest working on corner, heavy
speculative losses are sure to be in
volved, and damaging consequences
which may result from the struggl,
to cover those losses by realizing
sales in other securities are fresh il
memory since the historic cease OF
the Northern Pacific corner in 1901.
The sales of that stock at 1000 a
share for cash threw the market into
a panic The approach Of a corner
on that stock was discernible, how
ever, while the Rock Island came like
a bolt ont Of blue sky, and passed
so quickly as to almost leave no time
for effect on the general market.
Attempted explanations of the
movement We're widely various, and
In some cases, fantastic The recent
heavy sales of calls on the stock by |
foreign operators and purchase by |
them according to their rule, of half |
The amount required to meet con
tracts, undoubtedly played a part IN
.hts mornings condition.
The conviction grew that a miscal> |
'iage of the market management OF |
he stock had as much TO do as any.
hing with the modifying spectacle. |
That management has involved a Law. |
sh outlay of resources and very free
)lay of manipulative forces. Instead |
If the usual carefully calculated bal |
lnce of such forces in today's market |
here seemed to have been a reckless
)r laundering upheaval in one direc
ion without the intended effect on |
he other side. An error by a clerk |
vas one Of the speeious suggestions
made. Such explanations found more
general acceptance than rumors of q
struggle for control, owing to the fact
If control lying with the company's
stock.
Having asserted its power of resist
lnce to the shock the market showed |
tile disposition to move upwards
With decision, pending the working
nut of the year end money market
A few stocks advanced az.
sressively but the general list WAS
neglected.