South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-05-19
PUBLIC BUYERS
BACK IN STREET
Quiet HOpefuIneSS Keynote of
Market and Prices Are Firm
at Opening - Shorts Are
Forced to Pay.
BY BROADAN WALL.

NEW YORK, May 19.-Quiet hope
fulness was the keynote Of Mondays
stock market. Prices were firm at
the opening with a fair amount of
public buying. Speculation was large
ly centered in steel common. brokers
with buying orders found few sellers
and the price rose rapidly from 81 is
TO 60 ga, mostly at the expense of the
shorts. The rise was too rapid to
hold, however, and the price slipped
back to G. SIS shooting up again in
the afternoon to 60 Is. Part of this
gain was again lost. The stock was
firm at GO ga at the close.
It is believed that the large bears
have thus far made no attempt to
cover their contracts in this stock and
a further rise is expected. Improve
ment in trade conditions is the sub
stantial back ground for optimism in
the steel business. Union Pacific LED
the railways with an advance above
15S. St. Paul and Canadian Pacific
gair I more than point each and
Gre. Northern preferred displayed
quiet strength.
Industrials were firm with Westing
house firm at an advance of from 10
to IS 3-S. Copper stocks moved un-
evenly.
Amalgamated Copper touched IS SIS
and then dropped a point on selling by
Harry Content. Chino Copper gained
3-8 and Utah lost a fraction
Reading continues to puzzle the
floor traders Trading is active but
prices were unchanged.
There is a fairly large short inter-
l. 40 O.
enough TO encourage insiders to mark
up the price or points.
Chicago Great Western was strong,
the preferred gaining Ills. The pros
poets for good business with increased
earnings was encouraging.
Rock Island issues were neglected.
It is understood that the reorgan-
ization committee contemplates an as
sessment on the collateral trust bonds
and the common AMI preferred stocks
of the Rock Island company. When
the first and refunding 4 per cent
bond mortgage of the Chicago. Rock
Island and Pacific Railway company
was drawn up in 1908, a clause was
inserted, presumably by w. B. Leeds
who was then president, that reads as
follow, ):
THE railway company shall not
and will not create or suffer TO be
created while any of the first and re-
funding mortgage bonds are outstand
ing, any mortgage, pledge or lien, Or
charges subsequent to the lien of this
indenture, upon the mortgaged and
pledges premises or any part thereof"
This very unusual provision will
prevent the placing of another mort
gage upon the railway property and
those who pay the proposed assess
ment Will no doubt be compelled to
take income bonds. debentures or a
preferred stock for the cash that they
put up. The above mentioned clause
gives the first and refunding As a
strong position, but is a source of en-
barrassment to the reorganization
committee.
Rumors of crop damage have made
their annual appearance. Little at
tentiOn was paid to the first edition.
Time money was hardened a IA of
per cent. Sterling exchange was
strong and slightly higher
The ready sale of $40, 600. 900 United
Fruit 5 per cent four year notes pro-
duced good impression.
A stock exchange seat sold at S45,-
600. a drop Of $4,000 from the previ-
Gus transaction. 1t is understood that
four or five more are for sale.
Confidence in security values is
slowly, but surely gaining strength.
out of town orders were noted today
I'm sufficient volume TO encourage
hope for a broader inquiry. steel
common and Union Pacific are the
best leaders. for without strength in
these issues the present market would
soon lose its snap.