Omaha daily bee., 1909-05-04
NEW YORK STOCKS and BONDS
Violent Fluctuations in Reading Due
to Commodities Law Decision.
DOWNWARD PLUNGE EARLY
More Careful ReadtnR shows That
F1ndinR VIII Have Favorable
Effect ard stock Ad-
vpRcss sharply.

NEW YORK. May S-The violent fuctu-
atoms In Reading bslted- the assumption
that the supreme court decision In the
commodtes clause case would prove with
out stock market Influence In either dt-
rection. The market slipped into a condi-
ton OF stagnation before the announcement
OF the decision and became almost equally
lethargio in the period OF perpleNity fol
lowing the first report Of the scope Of the
decision.
me sentiment regarding the decision I'M
derwent violent mutations plainly lndt-
Gated in the downward plunge in Reading
on the first bold announcement that the
provisions OF the law we're upheld and the
violent upshoot which followed when the
conviction took shape that, while the terms
of the law were upheld. the governments
contentious regarding its construction
against the railroads we're disallowed. II
was quickly decided that while railroads
were disbarred from owning coal which
they transported to market. there was no
obstacle to their ownership OF shares 10
commercial mining companies. This would
leave rallToad comPanies which eonHoI
mines already by. this Indirect method In
the same position they are now, while in
the case OF the companies which own the
mines directly Il has been made an ele-
ment OF strength I'm the market for their
stocks that they were supposed to be
making plans to form separate companies
be distribu ted to the railroad stockholders.
The extreme range in Reading was from
1888 at the Owest 70 1914 at the high
est, the latter figure representing the high
est price touched since the boom in the
stock IN 1895, which eliminated In a price
OF 1874 in January OF 1906. There were
violence. which invited the most unbridled
speculation by the room traders. for whom
the sudden changes In the movement OF the
stock represented nothing but the blindest
chance. The Reading movement was the
index OF the whole market. hut In its most
exaggerated terms. No other stock ap.
preached II in point OF activity or range Of
The market gained perceptibly In breadth
and strength however, in the later stages
OF the trading advancing. The disposition
OF the commodities clause, II was felt, put
out OF the way a factor that has been over
hanginG the market with repressive effect
for months. The general effect OF the de-
CisiOn also was regarded as cheering and
helpful for property and corporate inter
ests. TIE natural expression of cheerful
ness by those interests is TO put M prices
on stocks. The bunyancy and animation of
the latter marHet nut out Of mind the dull
and heavy tone of the early dealings, al
though Il is not certain that apprehension
regarding the supreme courts action was
alone responsible for the early depression.
The taking of another million dollars In
gold bars from the assay office for nip
ment 10 Paris tomorrow showed a force
Of depletion Of bank reserves stu IN opera
ton. The 8 ner cent call money rate OF
last Friday left an expectation Of possibly
firmer money rates for a day or two. No
higher rate than 2 per cent was touched
during the day and opinion on money
market settled back into conviction Of pro.
longed ease. The promise OF extended
abundance OF money seemed 10 he the
cause OF sharp advances I'm a number OF
Industrial and stocks, United states steel
leading with a rise of 2 points to the
record price of 11714. The high rate Of In
vestment return on these stocks, with a
period OF Industrial expansion promised 10
add to the security, is offered as a rea-
son for this movement. The wal among the
trunk lines over import freight rates and
the fear of an unfavorable showing of pro-
gress of the crops in the forthcoming gov
eminent report of condition had some In
fluence on the early heavy tone. The out
burst of speculative excitement following
the commodities clause decision swept
away all other conditions and the market
was strong to the last.
Bonds were Irregular. Total sales pal
value Sc, 100, 900. United States bonds were
unchanged on call. ... .-
Number of sales and leading quotations
on stocks were as follows: