The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-05-26
LONG EXPECTED
TURN IS AT HAND
Advance in Market Comes at
Last, and Shorts May
Be Routed.
BY nROADAN WALL.

New York. May 25---Good stocks arc
n purchase. The long looked for turn
In the market has Mt last made its
appearance. and tho advance In prices
that began slowly last week rs expected
to develop into rout OF the shorts
AS indicated in this column last
Monday decision on the Minnesota
rate case is confidently looked for TO-
morrow and rumcr has 1t that 1t. will
be In favor of tho Interstate Commerce
Commission. which means that 1t will
be favorable to the railroads. with
this question out OF the way an In
crease of rates in several quarters Is
expected
For some time past tho stock mar
ket has shown nm underlying strength
that has puzzled those who failed to
realize how thoroughly the market was
liquidatcd. Recent efforts to bring re-
newed selling that would permit Of
covering OF shorts have failed, tho
market has merely grown more mar
row. and now that the city loan and
the Chinese loan are both out of the
way. the announcement that France
will hoat loan OF some $500, 600 600
finds the market cheerful and the CT
feet discounted. II Is thought probable
that the advance expected will at first
be largely at the expense OF the shorts
There has been accumula ton OF
speculative accounts on the long side,
and Il substantial rise would encourage
public buying. With this development
ana AN attempt to cover coinciding, a
sharp speculative movement is not I'M
likely
II is known that there Is consider
able short interest open in Steel, Read
ing. Amalgamated Copper. Union Pa
cifc and Southern Pacific. Efforts were
made last week to get back stocks by
a group of traders who were predict
ing all sorts OF calamities that have
anxious buyers on Thursday and Sat
urday.
Although no details of the now Union
Southern Pacific segregation plan have
become public. the strength displayed
by these stoolSs Is sufficient evidence
that the insiders have confidence
enough in It's success to buy both Is
sues.
With a settlement of this problem
1t should be an easy matter to stimu-
late activity In the general list. Next
to Union Pacific as leader. Reading
viii no doubt be active ut advancing
prices. and Amnlgamnted Copper Is in
line for important developments. The
steady increase In the demand for tho
metal as identification goes on will
Insure n broader and better market
than was ever known IN the past Ana
conda is viewed with favor by houses
with intimate connections with the cop
per producers.
Just as few years ago. wherever
YOU turned you found some one carry
ing steel common on margin. with tho
price betweap SO and 50. 50 to-day In
nearly all the commission houses
clients are short of the stock between
6S and 65. While 1t is Impossible To
estimate accurately the extent OF this
short interest, n canvass OF the broker
offices proves that 1t is extensive and
many of the semiprofessional traders
are too poor TO Garry stocks or are
short. as this style of trading
quired less margin.
An increase in the dividend rate on
Brooklyn Hapid Transit to per cent
is expected this week. Guggenheim
Exploration will, In all probability. in
crease the distribution to shareholders
shortly. American Can Company is
expected TO declare dividend on the
preferred at the rate Of ! So per cent,
and something on the account OF tho
back dividends due. Speculatively
these stocks look attractive.
Pennsylvania rights expire this
week. This should mean that the
price OF the stock Will become steady,
and then improve as selling against
rights will cease
With due consideration to the money
market. stocks look cheap. Al Satur
days prices the yield was az follows
on: Union Pacific about l-2 per cent,
Southern Pacific, about is per cent,
Great Northern preferred, about IL
Der cent, Pennsylvania. about 5 3-S
per cent, AtchIson. common. about 8
per cent Southern Railway, preferred,
about ID per cent.
Among others may be mentioned:
Brooklyn Rapid Transit yielding about
: as per cent Anal samated Copper,
about per cent Bethlehem Steel,
preferred. IA per cent. United
States Steel common. s IA per cent
AS brokers can borrow money on
mixed loans--rails and industrials-
for three months AT 3 1e per cent.
the market suggests opportunities for
tho courageous who have faith in the
outcome Of currency reform and the
crops.