Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-12-23
READINGS BIG RISE
Second Preferred Jumps IL
Points Today.
MELON CUTTING IS NEAR
Has Been Long Ripening in Re-
tirement Clause.
ROCK ISLAND ADVANCES, TOO
Many Reasons Assigned for Activity
of This Stock-Rest of Market
Lacking in Interest.
ROCK ISLAND ADVANCES, TOO
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, December 23.-There was
no development of Wall street significance
outside the stock market today quite as
interesting as those which the market it
self furnished. 1t was another stock ex-
change session characterized by special
movements. this time of a more violently
spectacular sort than any which have
been witnessed in the last few weeks.
which IS saying a good deal, considering
the rapid flight of Consolidated Gas few
days ago. The particular performer to-
day was Reading second preferred, which
rose more than a dozen points before
noon on heavy buying. Only somewhat
less spectacular was Rock Island COM
mon, which added substantially to its
recent advance after opening with an
astonishingly abrupt gain.
Just what the two leading price move
ments of the day signified was not a
matter of current or obtainable infor-
nation. Conjecture was not hard put
TO 1t to discover reasons. and conjecture
in this case has to go for what it is
worth.
Melon Cutting Expected.
The course of Reading second pre-
ferred was naturally related to the
melon which is supposed to have been
long ripening in the retirement clause
which provides for an exchange of half
the stock into common stock at par ard
cash payment at par for the rest The
wording Of the clause does not appar-
emily give the holder of the second pre-
ferred stock an option privilege.
IT seems to be wholly within the dis
erection of the directors to determine
whether or not. and when. the retire
ment should be made: but naturally the
precfpitOus-not to say precipitate-rise in
the second preferred shares this morning
was taken to indicate knowledge in some
quarters that the long-awaited melon
cutting was to take place in the near
future. At the present market price of
Reading, il retirement is to be made on
the basis of so per cent exchange for
common stock, the second preferred
would seem to have market value of
$780,
Rock Islands Advance.
AS for Rock Island, there was nothing
new in the guesses made as to the ele-
waiting influence behind it. These ranged
all the way from the mere transfer Of
majority voting power from the preferred
to the common shares to the retirement
of the preferred stock, which was mooted
yesterday.
At the same time it might be said that
the unknown features of the terms Of
sale of the St. Louis and San Francisco
may have been the cause for today's de-
velOpments In the common. Because OF
the concurrent strength of the Lehigh
Valley in the Philadelphia market a the
Dry was projected that the Rock Island
interests which recently admitted heavy
investment in Lehigh Valley, had in
creased their share.
Albeit. there was no little skepticism
in Wall street about the movement OF
Reading second preferred and Rock Is
land common. The theory of plain. or
binary, everyday manipulation and brute
force was not altogether despised in in
telligent quarters, while 1t was accepted
with eagerness in many
The room traders on the stock exchange
prOfessed to be very much disturbed. up
set in their minds even. by the rapid ad-
vance of these two issues, and alleged
that there was no substantial basis for
the cheerful deductions which have been
inspired nor valid reasons for the rise in
either stock. except an outstanding short
interest which has been aggressively
raided.
Rest Of Market Dull.
Apart from the stocks referred to, the
market was very largely lacking in inter
est. Denver and Rio Grande and the
Wabash, issues displayed rather vigorous
strength, and Pennsylvania rose rather
firmly in the early dealings. but failed to
hold its gain. In the early part of the
afternoon the market was quite irregular,
with price changes which were for the
most part inconsequential.