The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-12-28
But Nevertheless He and the
Moore Brothers Are Men,
toned in Announcement of
An Investigation.
JUDGE MOORE DENIES
KNOWLEDGE OF DEAL
Sharp Tactics of Wall Street
Operators Caught Many of
UnWary ''Shorts" in a Very
Tight Place.

common yesterday furnished one OF
the greatest sensations ever witness
ed on the New York Stock Exchange.
Within II minutes after the opening
of the market it had risen by leaps
and bounds 314 points above Fridays
closing to price of 81, and within 20
minutes after the opening it had fall
en- 81 points from the top to a price
of so. Veterans on the Stock Elk
change in searching their recollec-
tons for previous incidents nerve
racking in their effect passed by the
Saturday session which preceded the
failure of A. o. Brown & Co.. early in
1908 and did not stop until their mem
cries carried them back to May 8,
1901, the day of the panic which car
ried Northern Pacific up to $1,000 a
share.
Perhaps the exact cause Of yester
days temporary corner in Rock Island
common will never be known, by way
of official information. The COVER
nors of the New York Stock Exchange
held an extra session yesterday after
noon, and it is understood it's purpose
was the beginning Of an inquiry into
the causes which gave rise to the phe-
nomenal fluctuations in the stock.
That an investigation has been be-
gun was admitted by the Stock Elk
change officials, but they would not
discuss the matter further.
Insiders Ignorant.
The two important men in Rock Is
land financial affairs, Judge William
H. Moore and Daniel G. Reid. were
both out of the city when the 80
points rise and fall occurred. Mr..
Reid, it was stated at his office, had
not been downtown during the day.
He was at his home at Irvington-on-
the Hudson, where he was entertain
ing a Christmas house party.
Judge Moore was travelling on the
Twentieth Century train on his way
from Chicago when the terrific action
in Rock Island was on. When seen
at his office, at lis Broadway. at 8
o'clock yesterday afternoon, Judge
Moore said:
Il arrived at my office from Chica-
go at Ills. l did not know anything
about the excitement until that time.
Personally I have neither bought nor
sold share of Rock Island common
stock in many months. l regret eX-
ceedingly the episode"
Many were the theories advanced
during the day to account for Rock
Islands queer performance. but the
one which seems to be best believed
is that the corner Of a few minutes
was the result of an accident-a mis-
take in placing the manipulative or
ders in the stock. AS to just how the
alleged mistake was made stories
which purport to give an explanation
differ. One had it that the buying
orders given by one member of the
pool had been placed on Friday last,
while the person in charge of placing
the selling orders, which We're to have
offset the buying orders, failed for
some reason or other in the execution
of his duty
Mistake in Placing Orders.
Another story had it that through
mistake all the manipulative orders
were placed on the buying side. Still
another story was to the effect that
the buying orders, amounting to 1000
shares, had. by mistake of the writer
pear as 10000 shares
Whatever the cause, practically all
the orders in Rock Island at the open
ing We're on the buying side Temper
AIRY selling orders were insufficient by
far to supply the demand for the
stock. The great relative scarcity of
the selling orders may be understood
by the fact that after the stock had
sold at 81. the highest price recorded,
the bids ran up as high as 81 without
being supplied
First attempts to explain the move
ment in Rock Island described it to be
the result of coup made possible by
the existence of short interest in
London amounting to 100000 shares.
created through the purchase of calls
on the Rock Island shares by inter
ests on this side OF the water. One
report had il that this amount of
Rock Island common had been called
in the London market for yesterday s
delivery and that the foreigners were
running to cover.
Did Not Hold Water
But this story did not hold water
for the simple fact that delivery day
on the London Stock Exchange, on
which all money and stocks pass, will
not arrive until Wednesday. Deem
Der 90. The last previous delivery
day fell little short of a fortnight
ago Yesterday was a holiday on the
London ENchange-one OF the Christ
mas holidays known as Boxers day
Enough was known of operations in
calls on Rock Island in the London
market to make the first explanations
sound plausible enough. and the nat
ural consequence was that traders
! here and in London who were SO I'm
/ fortunate as to have short contracts
outstanding in the stock. either By
| the operation Of calls sold or direct