Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-12-28

CBy Associated Press)
NEW YORK, Dec. ga startling
market movement that had all the ear
marks of a corner" came 'aday when
the common stock Of the Rock Island
company within five minutes of the OPEN
ing rose from so 5-s to 81, when it settled
back again, after heavy trading. to 80:
All this startling pyrotechhie advance
of 81 points and equally surprising pre-
cipitation to the opening sale price caused
a SILVER OF fear on the stock exchanges,
which spread itself across the continent
on the brokers' wires, that a "corners
had been effected In the stock OF ths
Rock Island company. block of 1900
shares was sold at 81, the top price. Rock
Island common closed at 40 1-2 last FRI
day.
Fears of a corner caused heavy selling
| throughout the securities list, and there
were numerous declines OF to points.
cit seems as though some one has been
selling something he did not own" said
director Of the Rock Island. 1.-The con-
trolling interests of the company have
nothing to do with the spectacular ad-
vance and it looks as though there was
considerable short interest in the
stock and this interest was apparently
badly squeezed today. -
The opening sale Of Rock Island was
600 shares at 50 SIS. and then the sock
] advanced one-eighth, one-fourth, three
fourths 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
ensued. The decline. however, was much
| steadier than the advance, the recessions
running generally by fractions and from
1 to 2 points. Within Is 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.
Southern Pacific, after opening up 1
point ran of points below Friday.
Amalgamated Copper dropped back q 3-s
under Fridays closing, and there WIS a
general unloading of securities causing
acute weakness. The loss in Penrsyi-
vania reached 1-2 in the first half hour,
Reading 2 3-S, United States Steel l.
Union Pacific IL and American Snlelt-
ing points.
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
a.
competitive bidding by interests seeking
to control the property were not to be
entertained under the circumstances.
OFFICIALS NOT CONCERNED.
One of the directors of the Rock Island
and also connected with the banking in
terests Of the road. said of the move
ment:
1.-THE officials of the company and other
leading interests in the property had
nothing to do with the spectacular adj
vance in the stock
London and Paris financial interests
have been heavy buyers of the stock re-
Gently and 1t is reported that their rep
/ resentatives in New York bid for the
stock this morning and were at least in
directly responsible for the rise
This same Rock Island official said that
to the best of his knowledge neithe
Judge W. H. Moore, who is now in Oh
, cago, nor Daniel @. Reid, were in a
way connected with today's movement
Trading In Rock Island common q
in the first II minutes Appropriated
900 shares.
Rock Island rallied to So IL, butt the
was renewed evidence that there wel@
large supplies of that stock in the mar-<
ket and the price ran OFF again. This
served to tranquilize the rest of the
market, and prices began to recover.
Southern Pacific rallied to 1873 IL and
AmaIgamated Copper to IS 1-2, Pennsyi-
vania to 137 rs and other stocks in less
degree.
The market was quieter before the in
itial hour was over and prices had ceased
TO fuctuate as wildly as at first.
The drive against the foreign shorts in
Rock Island was the more easily accom-
plished by reason of this being a Holiday
in London and continental centers. The
Europeans were well represented here.
however, and scores of buying orders in
Rock Island were sent in before the
opening of the market.
According to trustworthy reports buy
ing orders from abroad were almost en-
tirely in the nature of short covering. and
ing resulted from the scarcity OF the
stock.
MAY BE INVESTIGATED.
The Aock Island episode was. tha one
subject Of discussion in the financial dis
trict II was intirnatod that an investigz~
ton probably would be made int, tha
matter by the governors of the stock ex-
change. The report current on the stock
exchange door was that a clerk In hand-
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