Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1909-12-28
NEAR PANIC ON
STOCK MARKET
Rock Island Common Rises Over
Thirty Points Within Few Min
utes After Opening.
DROP IS ALMOST AS SUDDEN
Men in Control of Company Know
Nothing of It.
GOVERNORS TO INVESTIGATE
One Rumor that Scheme of Match"
Orders was Carried.
OTHER THEORIES ARE ADVANCED
One, sIou Generally Accepted, At
tr,EUtrS Huyins TO Brokers nepre-
senting Interests of Euro
peHn shorts.
One Rumor that Scheme of Match
Orders was Carried.
OTHER THEORIES ARE ADVANCED

PcAh hhUEAAs
NEW YORK, DC. 27.-The New York
stock exchange has an investigation on
its hands Common stock Of the Rock Is
lard company rose 8iH points almost inn
medlat,ly after the opening today, then
even mere suddenly, dropped to so. Thereby
han.s a mystery or a fiasoo, with char
ac.t despatch, viii sift to the bottom.
VI the close OF today's session. the
gov quickly held a conference and it
was ounced that a special . vestig alton
had an instituted Francis L. Eamcs,
former president OF the exchange: J. T.
Atterbury and Ernest Goesbeek were ap-
pointed a committee to conduct the in
vestigation. Conservative members of the
exchange are much excited over the episode
and rigid and searching inquiry is de-
manded, with summary punishment Of the
offenders, II their guilt is established.
REID and Moore Ignorant.
Officers Of the Rock Island dlscla.m any
responsibility for the movement At the
office Of Daniel G. Reid. who with Ex-
judge w. II. Moore, is the acknowledged
leaders of the Rock Island group it was
said that Mr. Reid was ind sposed today
Another report rc.d that he was enter
talhlns house his country home
near mere Jr' 20 arrived in the
city from Chica Tho afternoon and
affirmed what La, ia said earlier in the
day that personally he knew nothing Of the
excitement until told Of 1t upon his arrival
in New York
80 much mystery and confusion sur
rounds the movement that anything like
clear explanation seems well nigh i'm
nOSefh1a NJ h{u
sion which the Governors of the exchange
held this afternoon several members who
figured in the buying and selling were
called before the committee. but no details
regarding the premllinary investigation
were made public Those brokers credited
with the orders declined to throw any light
on the subject. They will be called to tes-
tify later before the Investigating commit
tee. ....
Many Theories Advanced.
Stories purporting to explain the situa-
ton are numerous and conflicting. one
theory was that an attempt at manipula-
uon in the stocks had mscarried Accord
ing TO this explanation, heavy buying
orders were placed on the market, but
through some oversight the corresponding
selling orders did not appear The result
was, following out this theory, that there
was comparatively little stock for sale and
the brokers who had charge of the buy
ing orders had 20 bid the market up in
order to execute them. If such was the
case the orders were destined to be so
called hatch ORDERS" which were the
principal subject of the recent investigation
of hte Stock exchange instituted by Gov
ernor Hughes.
During the furry OF the stock today, the
balance of the list including the active
issues, was extremely weak. with vague
apprehension Of another corner"
An officer of the First National banH
OF this city, which has intimate relations
with the Rock Island, expressed the belief
tonight that the whole matter had its in.
ception in buying for European interest.
who are supposed to have been short il
the stock
Rumora of Corner.
Todays operations in Rock island com
mon totaled approximately ZlSCoo shares
or more than IS per cent Of the whole The
stock fiuctllled 1etween 49A and 81. it.
top price OF the first half hour and CLOSED
!, at blla, u,t saiu OF IA points.
All this s.a-ulng pryotechnic advance o
81 points and equally surprising precipita
tion to the opening sale price caused
shiver Of fear on the stock exchange
which spread itself across the coutinen
on the brokers' wire. thaI corner" naC
been effected IN the stock OF the Rocl
Island company. a block OF 1900 share
was sold al ST. the top price. Rock IslanC
common oiLstd at 49is last Friday.
1T seems as though some one has beer
selling something he dh not own" said
director Of the Rock Island. The control
ing interests aad officials OF the compan!
have nothing to do with the spectacular ad
vance and It looks as II there was a consid
sralls snur, interest in the stock and thi
nleresl was apparently badly squeeze,
TO-DAY"
lHe opening sale OF Rock Island was GO
Shares az o0ss and then the stock advanced
an ,-s"th, ihree-quarters and then b!
LEAPS ard bounds to high price OF 81
on the aGvanee blocks Of stock from 100 t
700 shares changed hands.
Becr Fknic Threatened.
Al thc ioo figures enormous supplies O
stock came cut and a violent relapse en-
sued The decline however, was muel
steadier tha2 the advance, the recession
running generally by fractions and from
/ 60 rJIHts Within fifteen minutes IN
price had fallen back to 30. Traders gen
orally Relieve that a corner had been en-
ginoeycd In the stock and there was a gen
era. rush to unload securities throughou
the speculative list.
Tie market became quickly unsett,e
through its.o of consequences OF a bea
pane iu Rock Island. Southern Pacifi,
after op n.as up ] point. ran off point
below Friday Anaig mated Copper droppe
back SO ordcr Fridays closing and thes
was general unloading OF securities
causing weakn1s,. The loss in Pennsylvani
reached pa IN tha first half hour, Readin
2&, United states Steel 4 Union Plc!f
II and American Smeltlng 3
The best opinion obtsinable in an nna-
cial and brokcguge circles was that shl
interest had been caught IN CAREFUL
laid trap. the sprlng!ns Of which was onl
possible because OF The absence OF sever.
Of the larger operators
w The Rock Island bonds which were col