Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-12-28
f he=Markets.
NEW YORK STOCK MARKET.
Features Of tho Days Dealings In All
The Leading Stocks.

New York, Dec. 27-The Rock Island ep-
ISOLDE in today's stock market afforded
an opportunity to test the stability of the
present speculative position. The resist
ing power shown by the market to the
alarming limitations carried by the SEN
sational gyrations in Rock Island stock
served as assurance that the present po-
sition is not easily vulnerable. Fears that
such condition might be growing up
have been fostered, to some extent, by
last weeks dropping tendency OF prices.
There was a decade that quiet liquidation
might have been going on of an infuen-
tial sort, which would be followed after
certain stage by withdrawal OF support
and abandonment of values to the natural
play of forces. If there had been, in
reality, a crumblng of speculative conh-
dence, such a shock as that of this morn
ing would have been certain to precipitate
liquidation and slump in prices. In
some few stocks where there has been
persistence in speculative activity since
the general market has grown quieter
was a haSty unloading OF stocks ana
sharp break in prices. The general list,
however, stood up well under the shock
and then rallied. The conclusion is forced
that the heavy tone last week and in the
recent past was due to a pause III the ac-
tivitieS of the speculation for a rise rather
than to any active pressure to sell stocks.
The control of the situation still cXer-
cjsed by the power of the interests back
of the market was demonstrated clearly
by the action of the market today. w mat
ever explanation may lie back of the
Rock Island episode, the movement Of the
stock was sufficiently extraordinary. A
rise of 81 points in five minutes in the
price of an important railroad stock IS
rare occurrence III stock market history
| When it is followed in almost as little
! time by a complete relapse ii may be
! said to be almost without precedent. The
| implication of a distressed short interest
! the working of a corner, the heavy spec
ulative losses sure to be involved ana tne
| damaging consequences which may result
! by realizing sales of other securities are
| fresh in the memory of the stock market
! element from the historic case or the
| Northern Pacific corner in 1901. Inc ap-
| proach of the corner in that stock was
! discernable however. while the Rock ISL
/ and movement came like bolt out OF
! clear sky Moreover. it was so quickly
| past as almost to leave no time 1of erect
! on the general market.
! Attempted explanations of the move
ment were widely various and, in some
| cases, fantastic. Recent heaevy sales OF
calls on the stock by foreign stock oper-
| ators and the purchase by them, accord
| ing to their rule. of half the amount re-
quired to meet the contract, undoubtedly
played u part in the condition which de-
Veloped this morning.
, The conviction grew UP in the course OF
| the day that a miscarriage of the market
management of the stock had as much to
do as anything with the episode. There
| seemed to have been a reckless blundef
| in that upheaval in one direction without
| the intended effect on the other side. An
error by u subordinate clerk was one sug-
| gestion brought forward. This explana-
| ton in it corralaries found more general
| acceptance than rumors of struggle for
| control, owing to the fact of the control
! lying with the preferred stock of the com
! pany. Having asserted its power of re-
| sistance to shock, the stock market show
ed little disposition to move upwards with
decision pending the working out of the
| year-end money market problem. A few
| stocks advanced aggressively. but the
| general list fell back into neglect.
Bonds were irregular Total sales, par
value. 81, 907, 900. United States bonds were
unchanged on call.