Norwich bulletin., 1909-12-28
SENSATIONAL CREATIONS
 IN ROCK ISLAND STOCK.
Rise of 31 IA Points in Five Minutes, Followed by a Rapid FaII-Various Explanations.

New York, Dec. 27.-The Rock Island
 episode in today's stock market afford
 ed an opportunity to test the stability
 or the present speculative position. The
 resisting power shown by the market
 to the alarming intimations carried bv
 the sensational gyrations in Rock Is-
 land stock served as assurance that
 the present position is easily vulner-
 able. Fears that such a condition
 might be growing up have been fos-
 tered, to some extent, by last weeks
 dropping tendency of prices. There
 was a dread but quiet liquidation that might have been going on of an infu- ential sort which would be followed aftrr certain stage by withdrawal of support and abandonment of values to the naural play of forces. If there had Deen, Tn reality, crumbling of specu- latlve confidence, such a shock as that or this morning would have been cer- tain to precipitate violent liquidation
 and a slump in prices. In some few
 stocks where there has been a per- sistence in speculative activity since the general market has grown quiet there was nasty unloading of stocks and a sharp break in prices. The gen. eral list, however. stood up well under the shock and then rallied. The con- clusion is forced that the heavy tone last week and in the recent past was due to a pause in the activities of the speculation for a rise rather than to any active pressure to sell stocks. The control of the situation still exercised
 by the powerful interests back of the market was demonstrated clearly by the action of the market today. What ever explanation may lie back of the Rock Island episode, the movement of the stock was sufficiently extrardi- nary. rise of 31 IA points in five minutes in the price of an important railroad stock is a rare occurrence in stock market history. When it is fol- lowed in almost as little time by complete relapse, it may be said to be almost without precedent. The impli- cation of a distressed short interest, the working of a corner, the heavy speculative losses sure to be involved and the damaging consequences which may result from the struggle to cover those losses by realizing sales of other securities are fresh in the memory of the stock market element from the historic case of the Northern Pacific corner in 1901. The approach of the corner in that stock was discernible, however, while the Rock Ialand move- melt came like bolt out of a clear sky. Moreover, it was so quickly past as almost to leove no time for effect on the general market. Attempted ex- pldIdIlOnS or the movement were wide ly various, and in some cases fantastic. Recent heavy sales of calls on the stock by foreign stock operators and the purchase by them according to thir rule. of half the amount required to meet the contract undoubtedly play ed part in the condition which devel- oped this morning. The conviction grew up in the course of the day that a miscarriage of the market manage ment of the stock had as much to do as anything with the episode There seemed to have been a reckless or blundering upheaval in one direction. without the intended effect on the oth- CT side. An error by subordinate clerk was one spacious suggestion brought forward. This explanation or its corolaries found more general ac- ceptance than rumors of a struggle for control owing to the fact of the con- trol lying with the preferred stock of the company. Having asesrted it's DOW CT of resistance to shock. the stock 4 market showed little disposition to move upwards with decision, pending the working out of the year end money market problem. A few stocks ad-