The Washington times., 1912-06-02

ntlCdl happenings. UnQer oInef ClTCuin-
stances, perhaps, the element hostile to
Colonel Roosevelt, in the financial dis
trict--in consequence of the remarkable
outcome of the New Jersey primary
TO doubt, have tried to
hold him responsible for the unsettle-
ment, but as noted in this column q
week ago. these interests and their
organs have been insisting that the Sc
curity market was paying no attention
to politics. In consequence, even II
SO disposed, this element could not,
consistently, proclaim Mr.. Roosevelts
victory In New Jersey. disturbing. when
II was but the elimination OF a long
series Of like events, all of which were
without adverse effects and many Of
which were marked by price advances.
= As a matter Of fact, there is no evi-
dence that the popular verdict, concern
ing whom Republican electors want for
their Presidential standard bearer, had
much IL any influence in the market.
That the break came close upon the
announcement of the result In New Jer-
sey may be regarded as nothing more
than a coincidence. It was clearly ap-
parent, and attention was directed to
the feature in this article last week.
that the speculative movement showed
every indication of falling back into
the rut from which It was extricated
last February. This was precisely what
happened on Monday and Tuesday.
when trading came almost to a stand
still, and II seemed TO mark, for the
time being, the cessation of the ma
chine-made manipulative movement in
cats and dogs, and rattle-trap issues.
The Expected Which Happened.
To careful observers 1t was the ex-
pected which happened in Wall Street
when stocks declined and this con-
clusion is not changed by today's rally
Standard railway issues ceased to ad-
vance several weeks ago, with the ex-
ception Of the anthracite coalers. which
were bid up, in what looked like, a
spirit OF bravado, for the manipulators
undertook the movement in the face OF
adverse news; at a time when a costly
strike certain to ntail heavy loss in
revenue, was in .ogress. This served
as a diverting mo tement, and no doubt
impressed many market operators, but
after the short interest in the anthracite
properties had been driven in, 1t became
apparent that public buying had not
been encouraged by the demonstration,
which, at all times wore a lock Of un-
reality.
It is a we'll known fact that the dis
CO. cry Of one good mine will make pos
sible the launching of anywhere from
ten to nifty prospects. and in like man
ner the successful upbidding of Ameri-
can Can common, which had been most
industriously tipped" in the Street.
made possible the upbidding OF a mis-
cellaneous and nondescipt group Of
other low grade specialties, which had
been selling at low quotations, COM
mensurate with their quality. About
the only public Dat Wall Street has at
tracted for months were inexperienced
persons who bought these shares OF
problematic worth chiefly on the
strength OF the advance in Can. Why
anyone should have looked for a healthy
market lead by sickly stocks 1t is diff
ficult to say, for no bull movement has
ever been maintained by such issues.
Nevertheless many of the tips on
such stocks made good" for time.
A Shift In Position.
When the trading showed signs OF
ianguishing. 1t would seem as though
the holders of the specialties, which
had been manipulated to inflated figures.
sought to sell them and found, as is al
ways the case when a movement In
specialties is of. that there was practi-
cally no market for such wares, except
at sharp concessions. Such an outcome
of the recent Wall Street performance
as the market witnessed during the
week WAS inevitable, and instead of be-
L. l.Au hxy ha TnltfiNal daVolnn-
ments, 1t Is far more likely the result
of some selling movement. which marks
shifting in position of a professional
speculative group, who realizing that
prices have been worked up about as
far as they can be, against unfavorablc
conditions, thought 1t high time to
work in the other direction.
That reaction was quite general
throughout the list Is true enough. but
precisely those issues, both of the rail-
way and industrial group, which have
been conspicuous features Of the manip-
ulation, such as Reading. Lehigh val
ley. and Rock Island, American Can
Rect Sugar, Ice. Pittsburgh Coal pre-
ferred, and the like. Probably the fea-
ture which attracted more attention
than anything else. was the weakness
in the Rock Island issues, which affected
not only the stocks of the holding com
self. Whether the declines in these Is
sues have any deep significance. Is
much discussed question. The street,
however, Cor some time has felt that a
ca pitals read djustment of the Rock Island
would be highly desirable, In that II
might aid it's credit.
Rock Island Rumors.
| So far as personnel is concerned, the
status Of the Rock Island property has
been immeasurably improved by the re-
tirement Of the Farquhar interest. and
the ACQUISITION of large holdings in prop.
erty by the Phelps Dodge Co. party
but the financial plan of the Moore-R Reid
marty, which acquired the old Chicago
Rock Island and Pacific property years
ago and turned It out in two new com
panies. on basis of go per cent of new
capitalization for 100 per cent of old
has never commended itself to conserva.
tive banking interests. The financial
plan, which was modelled closely after
| that of the Chicago and Alton, has beer
detrimental to the company's financing
Its first and refunding mortgage bonds
are now selling around 50, or virtually
ten points under bonds of other corpora
tions of similar grade, and it's collateral
trust As touched 81 on Friday, selling
10 Her than Wabash refunding As, which
are in default.
Wall Street rumors Of a possible re,
| ceivership for the property are not re,
garded as warranted In banking circles,
- swA. a