Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-12-28
For Those Who Engineered
Rock Island Corner. "
New York Stock Exchange
Probing Sensational Rise
OF Over Thirty Points Followed by
An Equally Sudden Drop.

New York, Dec. 27.-The New York
Stock Exchange has an investigation
on it's hands. Common stock of the
Rock Island Co. rose 31A points almost
| Immediately after the opening today,
| then, even more suddenly, dropped to
80. Thereby hangs a mystery or fiasco
or something that the governors the
Stock Exchange, with characteristic
dispatch, will sift to the bottom.
With the close of todays session the
governors quickly held conference
and it was announced that special
investigation had been instituted.
Francis L. Eames, former, president of
the exchange; j. Il. Atterbury and
Ernest GrOssbeck We're appointed q
committee to conduct the investigation.
The conservative members of the ex-
change are much exercised over the
episode and d rigid and searching in
quiry is demanded with summary pun
ishment of the offenders il their guilt is
established. Officers of the Rock Is
land disclaim any responsibility for the
movement. SO much mystery and con-
fusion surround the movement that
anything like a clear explanation seems
Stories purporting to explain the
situation are numerous and conflicting.
One theory was that an attempt at
manipulating in the stocks miscarried
Today's operations in Rock Island COM
mon totalled approximately 12S,00O
shares, or more than % per cent of the
whole. The stock fluctuated between
49A and 81, it's top price Of the first
half hour, and closed at 511s, a net
gain of q points.
One officer of the First National
Bank in this city, which has intimate
relations with the Rock Island ex-
pressed the belief tonight that the
whole matter had its inception in buy
ing for European interests.
The opening sale of Rock Island was
900 shares at SOS and then the stock
advanced an eighth, quarter, three
quarters. and then by leaps and bounds
to a high price of 81. On the advance
blocks of stock from 100 to 1000 shares
changed hands.
AT the top figure enormous supplies of
stock came out and violent relapse en-
sued. The decline, however, was much
steadier than the advance. Within 1!
minutes the price had fallen back to So
Traders generally believe that corner
had been engineered in the stock and
there was a general rush to unload Sc
curities throughout the speculative list
The market became quickly unsettled
through fears of consequences of bear
panic in Rock Island. Losses ranged
from one to three points in active stocks
There was general unloading of securi-
| ties, causing acute weakness.
The spectacular rise in Rock Island
common stock was generally credited to a
| frightened short interest, since it was
| quickly recalled that the control OF the
company does not lie with the common
stock and that therefore any suggestions
| that competitive bidding by interests
seeking to control the property were MOI
| to be entertained under the circum.
stances.
! One of the directors of the Rock Isl
and. and also connected with the bank.
ing interests of the road said of the
movement:
There is nothing in the affairs of the
company to account for the advance il
the price of the stock in such violent
manner 1t appears to be squeeze OF
| the shorts.
THE officials of the company and 9th
or leading interests in the property hac
| nothing to do with the Spectacular adj
| vance in the stock" continued the direct
| or "I.or1on and Paris financial interest,
! have been heavy buyers of the stock re
Gently and it is reported that their repre-
sentatives in New York bid for the stool
this morning and we're at least indirectly
responsible for the rise"