Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-10-24
D|c|Nc WITH STOCKS
Huge Trading Without Cause
the Market Feature.
STEEL MADE A LEADER
Open Manipulation Alarming to
Many Investment Holders.
BANKERS SHY OF MERGER PLAN
Less Willing to Lend Aid Than
They Were-No Interest in
New York Politics.
BANKERS SHY OF MERGER PLAN
By W. q. Nicholas.

NEW YORK, October 23.-This has
worked into something like a dice-thrower's
stock market. Ithas become a large trading
affair. It behaves wonderfully as though
some Of the pools, cliques and plunging
operators are smashing around with big
blocks Of stock for which they would like
to make q market and do not seem able
to find one exactly to their liking. There
has rarely been on the stock exchange
more fragrant manipulation than that
which has been going on In Steel and In
Reading. In Steel particularly great
blocks of stock are thrown about and the
price is churned up and down with ap-
parent utter disregard to legitimate trade
and market conditions.
The operations of the Steel pool are of
such magnitude and audacity as to seri-
ously alarm investment holders and spec
ulative dealers of moderate means. They
do not know what to make of things and
they can get no explanation which Is in
the least satisfactory. Authentic state
ments Of big earnings and prospects of
still greater revenues for the next year
statements the public has been heavy
buyer Of the securities Of the corporation.
Those who have their stock bought out
right or heavily marg1ned are In position
to support their investments, and ma
jority of them are doing SO, but there ex-
lists an element which is very much dis
turbed over the daily whirlwind action
on the stock exchange.
Steel Common Coming Back.
The explanation which seems to be
most reasonable, and which is accepted
most generally. is that large volume of
Steel common, which has been carried in
London for months for New York account
il in process of transfer back to this city,
a move made desirable by the advance
In the Bank of England rate. So long
as money could be borrowed In London
at ~ per cent and under the pool pre-
ferred to leave the account undisturbed,
but when the rate was jumped on sue
cessive weeks a change came over the
situation. and the New York borrowers
In London made haste to shift the ac-
count back home. This transaction neces-
STATED the selling of the stock for Lon
don and its repurchase here. Manifestly
it was to the interest of the pool to churn
prices up while the selling was going on
and then to organize a break In order to
buy back the stun at the. lowest possible
prices. This seems to ~ the deal that
has been going on for the last couple of
weeks, according to those who are we'll
market There has also been important
payment Of money borrowed in London
for American account on Union Pacific.
Southern Pacific, st. Paul and New York
Central. All this has been a disturbing
feature and no one seems quite able to
figure how 1t is going to work out or ex-
actly how it is going to affect prices of
stocks In the immediate future. Coming
at time when the supply OF money to
finance stock market speculation Is run
ming low hereabouts, the natural conclu-
sion is very generally reached that the in
fiuence on prices will continue to be adj
yerSely felt for some little time 70 come