South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-05-02
GOOD GAINS ARE
MADE BY STOCKS
Market Closes With Prices
Strong as Result of Exten-
Sive Short Covering-Confi-
dence Partially Restored.
BY BROADAN WALL.

NEW YORK, May STOCKS closed
strong Friday with many substantial
gains. the advance largely due 10
extensive short covering.
Too much emphasis was laid on the
unfavorab!e side Of possible develop
ment A prolonged period OF hard
times followed by sudden crisis in
the Mexican situation, a renewal Of
foreign liquidation and the default on
the Rock Island bonds had altogether
encouraged short selling, out of pro-
portion to the floating supply Of
stocks Probably too much stress
was laid on the reaction in the steel
and iron business, at all events traders
overlooked the danger ever present OF
selling steel common below 60.
The success of the bankers in dis
posing Of the New Haven notes
brought an upturn that should run
further as stockholders have not re-
newed confidence and the bears
smaller chance to cover.
The approval of the plan to reorgan-
ize the New York Central system have
placed the shorts of this stock in an
embarrassing position, and the de-
cision OF the appellate division Of the
supreme court denying the request to
enjOin the proposed Union Pacific dis
tributiOn proved unexpected ammuni-
ton 70 the bulls.
Missouri Pacific is still a puzzle. I'm
dOubtedly a large interest has been
created in the stock, possibly in the
hope that the company would be fore
ed into a receivership thus enabling
some pessimistic insiders to cover
their stocks at a substantial profit
The buyers of Missouri Pacific have
kept carefully in the background. A
change OF control appears inevitable
end the street anticipates new policy
that will be constructive. Recent
management has all been on the 9TH
er side OF the book.
Persistent rumors that the eastern
railroads would win out in their de-
mands for a five per cent increase
were current. Union Pacific gained
2 IS and advances Of from 1 TO per
cent were numerous. Pennsylvania
sold at 10 "ex' dividend and the
next sale was at III. a clear illustra-
ton of the paucity of offerings.
Southern Pacific rose nearly 2
points and Lehigh Valley was strong
at 139 1-2. Barely a week ago these
shares sold below 1913. Canadian Pa
cific was active with a ? point ad-
vance.
Although London was closed, Ber-
lin and Amsterdam sent buying orders
that probably totalled 10000 shares.
fractions came to the front
Brooklyn Rapid Transit, six per
cent stock. is considered particularly
cheap at 81 1-2. 1t is understood that
InterbOrough- Metropolitan had ar
ranged its finances and an advance in
the preferred stock is anticipated.
Steel stocks were strong. u. S. steel
common gaining more than points
and Bethlehem Steel issues made sub
stantial advances.
Copper stocks were all firm with
good buying in Anaconda and Ten
nessee Copper.
Bonds were active and stronger. U.
5. Steel SIS were in good demand at
higher prices. Southern Pacific con-
vertible SIS displayed a firm tone and
many Of the industrial issues scored
advances.
Saturdays bank statement promises
TO be unusually favorable.
Pennsylvania net earnings for
March showed an increase of $651.OOO.
Missouri, Kansas and Texas lost $52,-
600 net.
Further advances in prices will
hinge largely on the extent of the
short interest. The recovery from the
low point of a week ago has reached
a normal limit. Some reaction from
the present level is TO be expected.