Norwich bulletin., 1909-09-11
FINANCIAL AND COMMERCIAL,
EXCITED UPSHooT OF PRICES.
NO PARALLEL SHOWN
For the Action of the Market Follow
ing Mr.. Harriman's Death.

New York, Sept. 1O:-The annals Of
the New York stock exchange show no
parallel for the action of the market
today, following the death OF E. II.
Hartman. There have been instances
where due preparation in anticipa-
ton Of the death of an important cap
italist has absorbed the shock so far
as to minimize its bad effects on the
stock market, while in other cases
Generalization has followed, as an the
sudden death of Ex-Governor Flower in
the midst of his conduct of a violent
speculation. But for todays excited
upshoot of prices there is no parallel
Some OF the principal reasons for the
movement are not obscure. The prin-
cipal agents in the violent advance in
prices and the acutest sufferers I'M
doubtedly- were those who had pre-
Sumed to sell stocks short on the as
sumption that holders of shares in the
Hartman properties would rush them
to sale at a sacrifice when Mr.. Harri-
mans death occurred. Some Of this
class persisted in this view to the ex-
tent of making short sales of these
stocks when they saw a buoyant rise
at the opening of the New York stock
market this morning. Their SUPPOSE
tion was that this advance had been
brought about by artificial measures
to reassure sentiment and to facilitate
further liquitlating sales. These short
sellers became convinced before the
first hour of the market was over that
the residence shown by prices was too
strong to overcome. Their precipitate
rush to buy stocks had much to do
with the rocket-like aight of the later
price movement in Union Pacific. The
discontinue Of the bears in Union
Pacific was materially increased by
1.-THE announcement of Kuhn, Loeb &
Co., the recognized bankers of the I'm
ION Pacific company, that they, the
National City bank interests, and 9TH
er leading interests are acting in uni
son in Union Pacific affairs. The deep
influence Of the announcement on SEN
timent must and It's explanation in
sinister rumors which have been cir
culated ever since the severer stages
of Mr.. Harriman's illness, that his
properties were being raided and that
a breach was threatened amongst the
controlling powers in the property
which might have widespread effects
throughout the financial fabric. The
short announcement from the banker7
was accepted as a proclamation of the
baselessness of these rumors. The in
ference went with the announcement
of an intention to carry forward Mr..
Harriman's extensive plans regarding
the properties brought under his con-
OF l1UuenCc.a IncT6 was Il SIOIl
time early today when American Sc
curies showed some signs of depression
in the London market. This was before
day had broken in New York, and
long before trading began on the New
York stock exchange. American Sc
curities showed substantial advances
in London. 1t happened, therefore.
that arrangements to support the mar
ket here in the event of weakness
proved uncalled for. The market, in
fact, never touched the price levels at
which these conditional buying orders
were placed. The resistance shown by
prices had the effect of restoring to
full play the feeling of confidence in
the good prospect for general business.
An advance in the price of steel bars
during the day by the United States
Steel corporation, which brought 1t
back to the level OF before the Febru-
airy cut, was a factor in the rise in
that stock to new record price. Pros
poets of heavy decrease in the cash
reserves of the banks this week was
Ignored, and the stock market main
tanned its aggressive strength up to
the end. Gains OF to over 5 points
were quite general and Union Pacific
ended the day 1212 points higher
than last night. Bonds were strong.
Total sales. par value, s7G33.00O Unit
ed States bonds were unchanged on
call.