The Washington herald., 1910-09-13
WALL STREET NEWS
Market Strengthened by Big
Stock Transfer.
DEAL IN ROCK ISLAND SHARES
sharp Advancement Results and
Monday Proves n Good Day All
Along the Line, Although There Ii
No Grent Demand from the Out
side Public-Time Money Easy.

New York. Sept. l2-The announcement
that the big block OF stock OF the Rock
Island Company, which a banking syn
dictate took over from the Pearson Far
quhar syndicate six weeks ago. had been
sold to Phelps, Dodge & Co. impaired
strength to the stock market to-day. 1t
was understood at the time that the
banking syndicate headed by Kuhn.
Loeb & Co. acquired these holdings. and
one OF the principal motives for the ac-
QUESTION was the desirability OF saving
the stock market from continuation Of
the forced liquidation threatened by the
weakened position OF the Pearson-Far-
quhar syndicate. and transactions served
20 turn the market from the most abrupt
decline OF the year into the most rapid
recovery.
But after the market had recovered
from the Generalization caused by
forced sales Of part OF the Pearson Far
quhar holdings, there arose the appre-
hensiOn that the stock might at any time
be placed upon the market. and It was
rumored from time to time that con-
troll OF the Rock Island Company might
change hands as a result OF the trans
action.
approximations Are AIIayed.
All apprehensions OF this kind were
definitely dismissed to-day on the an
nouncement OF the transfer OF the stock
to Phelps. Dodge & Co. for this company.
owning a railroad connecting with the
Rock Island. acquires the Rock Island
stock for the sole purpose OF securing
closer traffic relations with its own road.
and accordingly in purchasing the stock
removes it from the field Of speculation.
Moreover, the managers OF Phelps, Dodge
& Co have long maintained close bust
ness relations with the managers OF the
Rock Island and Of other important
Western railroads. so that the transac-
tons insured continuance OF the cor
dial relations among the roads west Of
the Mississippi
The Rock Island shares advanced
sharply after the announcement Of the
transactions. the common stock gaining
IA points and the preferred is points
on the day. The Chicago Rock Island
and Pacific collateral trust per cent
bonds were also strong and active.
Other railroad shares advanced. but.
while these others were strong, transac-
tons in them were not much heavier
than on the dull days last week. and in
terest in the market, as a whole. was
only a trihe less apathetic Few. il
any. OF the commission houses had more
buying orders than on any other day of
late. and there was perceptibly no revi-
val whatever In demand from the out
side public. In bonds the market was
decidedly more active, sales aggregating
more than $l.S000o0. but here. also the
increase in activity failed 20 reflect any
considerable strengthening Of the invest
ment demand. The increase in sales was
principally due TO a squirt in Chicago
Rock Island and Pacific collateral trus,
As, and to a continuation OF that activity
with its accompanying indications OF i'm
portant liquidation in Union Pacific con.
vertlble As Not far from $4,000 Of these
bonds changed hands to-day at price,
ranging from 1921 20 1O2A at the close
The grain markets were strong-whear
and oats recovering a small portion Of
last weeks decline, and corn and pro
visions advancing 10 the accompaniment
OF vague apprehensions Of frost IN tn,
corn belt. The market effect OF thes,
advances was neutralized by a declin,
OF 10 points in October cotton and OF i
points in cotton for September delivery
There was no significant change in tn,
m,ney situation. India and the cont
nent secured all OF the 100000 gold laiC
down in the London open market. bu
London discounts were a trihe easier
In this city the only change IN monel
was a slightly easier tone in time money