The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-12-27
Rock Island Common Makes a
Remarkable Squirt.
Selling Price Nearly Doubles in
Five Minutes.
FRIDAYS CLOSE 40 CTS.
Floor Traders Think There
Must Be a Corner.
High Figure Reached on Sales
of 1,SOO Shares.


! earmarks of a corner" came today
when the common stock of the Rock
Island company within five minutes
| of the opening rose from 509s to 81,
! when it settled back again after heavy
trading, to so.
All this startling pyrotechnic ad-
vance of 81 points and equally sur
| prising precipitation to the opening
sale price caused a shiver of fear on
the stock exchange, which spread it
self across the continent on the
brokers' wires, that a corner had
been effected in the stock of the Rock
Island company. A block of 1,SOO
shares was sold at 81, the top price.
Rock Island common closed at 40 last
Friday.
Fears of corner caused heavy SELL
ing throughout the securities list and
there were numerous declines of l to
points. 1T seems as though some
one has been selling something he
did not own" said a director of the
Rock Island.
cials of the company have nothing to
do with the speculative advance and
it looks as if there were a consider
able short interest in the stock, and
this interest was apparently badly
squeezed today"
The opening sale of Rock Island
was 500 shares at SOS and then the
stock advanced an eighth. quarter.
three-quarters. and then by leaps and
bounds to the high price of 81. On
the advance blocks of stock of from
; 100 to 1000 shares changed hands.
Then Came the Relapse.
At the top figure enormous supplies
of stock came out and a violent re-
lapse ensued. The decline, however,
was much steadier than the advance,
the recessions running generally by
fractions and from 1 to 2 points.
fallen back to so. Traders generally
believe that corner had been engi-
neered in the stock and there was a
general rush to unload securities
throughout the speculative list.
The market became quickly unset
tied through fears of consequences of
q bear panic in Rock Island. South
ern Pacific, after opening up 1 point,
ran off below Friday. Amalgamated
Copper dropped back 3s under Fri
days closing and there was a general
unloading of securities, causing acute
weakness. The loss in Pennsylvania
reached 21a in the first half hour;
Reading IS. United States Steel 1.
/ Union Pacific liz and American
Smelling 2.
common stock was generally credited to
a frightened short interest. since 1t was
quickly recalled that the control of the
company does not lie with the common
stock and therefore any suggestion that
competitive bidding by interests seek
ing to control the property were not tc
be entertained under the circumstances.
One of the directors of the Rock Island
and also connected with the banking
interests of the road, said of the move
ment:
There is nothing in the affairs of the
company to account for the advance in
the price of the stock in such violent
manner. 1t appears to be a squeeze o;
the ehorts."
This same Rock Island official said
that to the best of his knowledge neith-
er W. H. Moore, who is now in Chi
cago, or Daniel G. Reid. was in any
way connected with today's movement.
Attributed to en- Error.
Trading in Rock Island common
! stock in the first IL minutes approx
mated 100000 shares.
Rock Island rallied to 521a, but there
was renewed evidence that there were
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 1881 and
Amalgamated Copper to S8k; Pennsyl-
vania to 1873 and other stocks in less
degree.
The market was quieter before the
first hour was over and prices had
ceased to f1uctuate as wildly as at first.
The Rock Island episode was the one
subject of discussion in the financial
district. 1t was intimated that an in
vestigation probably would be made
into the matter by the governors of the
stock exchange. The report current on
the stock exchange floor was that a
clerk in handling an order of 1900
shares made an error and made it read
10000 shares.
The best opinion obtainable in all
financial and brokerage circles was that
short interest had been caught in a
carefully laid trap. the sprnging OF
which was only possible because of the
absence OF several of the larger oper-
atives.
The Rock Island bonds which were
concerned in last weeks speculative
movement in the Rock Island deal
moved very feverishly. Rock Island
collateral fours sold at S5 in a block OF
100000 and then slumped to SO. The
| Wabash refunding fours sold at 7S1a
and then ran off to TN. Wabash pre-
| ferred dropped under Fridays closing
price.
i One hundred and ffty-five thousand
| shares of Rock Island common were
| traded in during the first hour
Panicl<y Feeling Subsidies.
The market fell into dullness after
Rock Island had ceased its violent
gyrationS. that stock settling down in
| the neighborhood of So. Whenever
| it started up stock was forthcoming
| to give assurance against danger to
the shorts. The panicky feeling
among the bears subsidized.
Prices made substantial recoveries
| in the general list and came almost to
standstil1 not far from the level
where they left off on Friday last
Much uneasiness remained to disin-
cline the speculative element to enter
| on new commitments until some sat-
isfactory explanation was forthcom-