The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-05-25
BETTER TONE,
Higher PRICES
Shorts Show Nervousness and
Bid Up Leaders Rather
Sharply.
LOOK FOR NEWS MONDAY
Supreme Court May Hand Down De-
cision-Money Working Easier.
Gas Lower.
By I. 1. FLEMING.

1t was Thursday of last week tina. the
first signs of the turning of the tide in
the New York stock market were hrst
visible to the close observers of condl-
tons II was considered by those who
claimed some credit as market judges
that the appearances indicated hs'
sold to standstill, a short interest so
widely extended that it would run and
put itself in danger on the slightest indl-
cation of favorable news.
The bears had exhausted their ability
TO exert further pressure: they did not
care to press for further success: they
we're hopeful for further declines, but
would not take the necessary chances 10
bring them about
The market needed something to give
it strength. and then the turn would
come.
Strength developed on the chances of
= favorable decision in the Minnesota rate
case: on the prospects Of a favorable
solution being found for the Union
Pacific southern problem; on good crop
Ilospects and a feeling that the worst
is over.
Saturdays Advance.
Yesterday brought the week to close
in one of the strongest sessions and with
sharp rally in all stocks. even in Cana
dian Pacific. which was under pressure.
hut rallied we'll to a net gain of more
than - points before the close.
Shorts were decidedly nervous. The
desire to cover contracts was evident
with the tap Of the hell. and at the clos
ing values were within fraction of the
highest of the day.
The average gain i'm all the leaders was
letter than points while there were few
stocl:s on thu list that did not move up
in sympathy with the leaders.
Traders believe that the settlement of
;he Union Pacih. Southern Pacific mat
Ger Is prarti. ally greed upon and that
announcement will he made ny Mon
day or Tuesday.
They also believe that Attorney Cen
e. al Smith Of Minnesota was right when
he predicted the handing down Of the
decision tomorrow. MAY -. From Bos-
ton cane the announcement that
Thomas W lawson was confident that
the decision would be down tomorrow
and that il would he favorable.
List Follows.
Throughout the entire list the strength
WAS shown. Union Pacific made 1t SIS
points net gain and held "a: Reading
closed the session with Ia advance;
SHuliltIu EdSlIlC' IL l-ouiSN INV anu ->hSl'-
Vile. 2I=: Lehigh VALLEY. rs: Sugar. Ia:
California Petroleum pfd.. lls and Steel
common. = of a point.
The total sales of the short session,
.lU.C0O shares. AS an evidence of the ac-
i've covering on the part OF shorts. II
meaning a 50U0O0 share day for a t1ve-
hour session.
GoId Exports.
,.lys
that . French liner has sailed from New
York without gold for Paris The move
ment has resulted in Sl2.0nO.0OO going
abroad. or about the same volume as the
exports two months ago. and CARVING
ont the theory advanced that France
would draw gold so as not to disturb
TIL markets. So far this ear the
Partisan imports OF yellow boys from
America has reduced our stock OF gold
-. OOuN on
Local stocks.
Washington Gas showed the first sign
Of weakness in several weeks. 1t has
been bought freely for the last month
around 81 LAS. the while there have
hern good selling orders a n. Yester
day a bid Of ~ 81 met stock. then 81 SIS
and finally 81 L. the bid price al the
close. So far as known there was no
reason for the weakness. any more than
the recent good strength has been charge
able to any special influence.
There was less business than on any
day for sOmr time. only Gas selling. The
attendance of members was good, but
orders were not numerous.
Big Dividend PAYMENT.
With the first of June will come out
S2'2.;'H' div idrnds on Washington Railway
and Electric shares. S97.5OJ To holders Of
he common stock. and slC6.5O on the
preferred stock. II will he the first pay
mcnt on the common stock on per
cent basis Naturally a large part of
this distribution will go into the treasury
Of the Washington Utilities Company and
he used to pay dividends on that stock,
Yet there will enough remain with the
investment public to give strength to the
Railway ShaTes-if there is a movement
TO accumulate stock.
Other stocks have held their own very
well during the week
Some support has developed in bank
shares where it was needed and the local
market as a whole is in good position
for modest improvement. if betterment
in the general list goes on apace.
Iuvestment Situation.
The investment situation is being
closely watched by corporations having
financing to do. Much depends on Mon
days results in the way of Supreme
Court decisions and on the action of the
Interstate Commerce Commission on the
application of the railroads for permits
sion to advance freight rates per cent.
The initial turn has Just been past; the
shorts are nervous and would cover
under any favorable developments. In
vestors have been watching the market
closely and have about decided that II
is the time to buy stocks. Should some
of the real stumbling blocks be removed
the current week will show much more
radical improvement than the past has.
Money is plentiful: the country banks
are holding larger reserves than usual,
the slaclening of business makes money
easier but there is a disposition on the
part of bankers to sit tight until the at
mosphere is cleared. and the DISPOSE
ton of the public and the big men in
finance is more reassuring. All things
come in good time. and the good time
seems to be nearer than IT mas for
months.
Encouraged.
Chicago finaneiers have returned from
Sriar Cliff Manor bankers convention
strengthened in the idea that the country
will escape a fall money squeeze.
Ralph Van Vechten says that the conven-
ions tone was optimistic, and that bank
RS are encouraging customers to go ahead
With the ordinary commitments. but to
gnore new enterprises. He says the rela-
lively small volume Of commercial paper