The Washington herald., 1909-02-25
RECOVERY IN STOCKS
Aarketa Little Irregular but
Shows improvement.
SHORTS RUSHING TO COVER
SOber-minded View of Tuesdays
Decline Is that IL Was ,Overdone.
Believed that Much Reading stock
Was Forced Upon gIarket-COurt
Decision No Cause for Alarm.

New York, Feb. 24-AhsiTs on the Stock
Exchange to-day pursued the course usu-
ally followed by them on the day or days
Immediately succeeding a break in the
market when II becomes evident that the
liquidation has al least temporarily ex-
hausted itself At such times spectators
for the fall rush 10 cover their
short" contracts. the market displays
the effect Of the steady execution pre-
viously OF scaled buying orders by in
vestors and decided increase in the
volume OF such purchases is stimulated
BY the extreme violence Of the drop IN
prices Of the day OF greatest demoraHzs-
ton
To-day q higher range Of prices for
American stocks IN the London market
before the opening OF business here gave
the cue 10 the character Of the DAYS trad
ing locally. Although the market in its
first transactions was not a little irreg-
Ulsr, certain stocks being rather signalIy
depressed below their closing figures yes
rerday while others were az material ad-
valces, il WIS nevertheless. as a whole.
in a recovering mood.
Due TO Professional Attacks.
The general comment or the part Of
sober-minded people was that yesterdays
extraordinary fail. no matter how orig
mating. had been considerably overdone.
and there was a second thought resliza-
ton, as there always IS. that the decline
had been largely accomplished by means
OF daring professional attacks upon val
Ues.
Il was commonly thought that the drop
fl Reading stock. which was really the
most sensational feature Of business yes
terday. was due particularly 70 a cause
OF this sort. and there vas also some
reason 10 believe thar the assault on the
stock was effective IN forcing upon the
market a large block Of the Reading
shares held speculatively by a rather
weak market pool.
At any rate, il seemed absurd. IN the
light Of to-day's calmer consideration. 10
attribute such drop in the pAce 9f the
issue as yesterday occurred 10 apQre-
tensions regarding an adverse decision by
the Supreme Court OF the United States
in the commodities clause case The
Reading Company IS not concerned even
indirectly with this case, and a court
decree holding that the Reading was not
entitled 20 own any coal lands can only
issue as q result of a separate litigation
Road Not in Danger.
Il may be said that IL IS the opinion OF
practically al lawyers who have studied
the matter that the roads ownership OF
this property AID its right 10 transport the
coal mined thersfrom is fixed impTegnably
bv the grant Of the state Of Pennsyl-
vania 10 the Reading company. long pre-
csiing the passage OF Federal laws on
THE subject. or even The legislation OF
Pennsylvania for forty years ago. which
contained prOhibitiVe provisions similar
20 those embodied IN the United States
statutes, and, moreover. even in the worst
possible eventuality the roads coal prop
critics must be necessarily divided in
some way among the Readings own
stockholders.
The market steadied a little and re-
NAMED dull after its preliminary advance
today. but again gathered strength in the
afternoon. so that closing prices were
generally at OF near the highest and al
advances running from one 10 three
points
Notably strong stocks were the Louis
vile and Nashville and Atlantic Coast
Line shares. these issues being those
which we're percep1ibIy in progress OF
accumulation before the recent decline.
But the rising tendency IN the market
was broadcast. embracing every active
stock. As weak features as any were
TIE various Erie Issues. There were no
developments Of Importance regarding the
Steel situation