The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-04-09
FINANCIAL NEWS
AND COMMENT
Bethlehem Rises Violently
Over an Extreme Range
Of 90 Points.
TNSETTLES THE LIST

Any stock market which after a rapid
rise OF considerable extent can stand
such tests of heavy selling and excited
bullish speculation as have been ap-
piled lately has a good deal Of vitality
and essential strength. The further re-
latest trial OF it's endurance--the vlo-
lent ascent OF Bethlehem Steel late yes
torday--will accordingly he not only in
'erestlng but may be instructive.
Powerful factors have been at work
to influence improvement in quoted
values Of corporate shares. and even
though the spring rise has not lacked
signs that II was making an extravaga mt
appeal to purely gambling impulses the
movement has in the main seemed to re-
Elective observers TO be justified by
conditions. Nothing else could explain
the way In which selling pressure has
been resisted and overcome, and ad-
vance has continued against episodes
in the market itself which would ordi-
narily tend to discourage constructive
efforts. The test to which the market
was subjected yesterday. principally by
the course OF Bethlehem Steel. seemed
likely TO develop it's position quite ade-
quately.
The stock started upward in the
early dealings and by mideession
had risen more than II points from the
opening level. This was in addition
to an advance OF about so points since
the reopening of the Stock Exchange
accomplished despite positive assurances
from the management OF the company
that the corporations resources would
he devoted for a long time to come 70
the development OF the property and
not TO dividends. Late In the afternoon
the shares took another rapid fight
and sold more than IA points above
the midsession figure, a total rise for the
day OF 20 points.
Subsequently there was sharp
break. but the close was made at a
net gain OF II points for the session
II goes without saying that the rest OF
the market was unsettled by the per-
Torrance of bethlehem Steel and prices
sold off rather sharply all around in the
late dealings, but although the tone OF
the market was nervous at the close
the list still displayed underlying firm
ness. which was more or less impressive
evidence of its fundamental strength.
Various stories. none OF them new
were circulated to account for the Beth
lehem Steel racket. They ranged all the
way from alleged efforts of some inter.
ests TO acquire control for the purpose
of merging the Bethlehem Steel Cor
poration with another concern to plan
for the declaration of substantial stock
dividend against the equities which have
been accruing to shareholders from the
large amount of earnings put back into
the property In the last few years. The
extraordinary earning power which the
corporation has demonstrated has been
accountable for the buying favor ex.
tended 10 the shares in the last few
months. but the most acceptable inter
probation of the movement yesterday
was that the stock had cornered itself
as the saying goes. There is relatively
small stock capitalization and be-
tween an insignificant floating supply
and surrender to speculative tempta tior
10 sell IL short traders had presumably
brought about a situation which could
only be described In terms Of a corner
Whatever was the cause OF the demon.
stratiou in Bethlehem Steel II liz worth
quarters last night the question was
asked II self-interest as well az the
public interest did not call for stock
Exchange action to assure a more or.
derby movement of prices when stock
or when stocks. disclose situation
which might be getting beyond the con.
troll OF the automatic processes by which
the market is customarily regulated
The problem ie a difficult one, but there
is more than n suggestion In the imam.
cial history OF the last few years thai
the Stock Exchange could we'll afford
10 recognize a greater responsibility 10,
the conduct OF the market which II
maintains than il has assumed in N,
past. Nor can the problem be solved by
dismissing any spectacular exploit o.
the market as phenomenon Of specu.
lation with which the Stock Exchang,
has no concern.
Outside the features OF the marke
itself there was very little In the new.
OF the day which attracted attention
or had any bearing on the dealings.