The Washington herald., 1915-10-05
Stocks Ascend
To HIGH Marks
Bethlehem Touches 399N
After Untermyer Warns the
Public Against Speculation
TO OFFSET COLLAPSE
Wall Street Getting Ready for Sudden
Stop to Prevent Speculative Wave
When 1t Comes.

New York, Oct. 4.-Whether or not i;
was the many warnings against reckless
speculation or the action of the banks
In discriminating against industrials in
loans to commission houses. the stock
market suffered a reaction in the late
afternoon today. following the establish
ment of several new high records by the
var stocks. Nearly 100000 shares again
changed hands.
At noon the railroads were taken in
hand and rose an aveHge Of point
under leadership of Union Pacific,
Southern Pacific. Great Northern and
Northern Pacific, but their strength
On the industrials, which continued to
recede during the afternoon.
The reaction was considered by con-
servative brokers to be a natural one in
view of the seven sessions of continuous
advancing prices, and to have left the
market in a stronger technical position.
Wall Street is making preparations
against any sudden collapse in the pres
ent speculative wave. Banks took time
by the forelock today and informed the
commission houses that more railroads
and less industrials, particularly war
stocks, were desired as collateral in
loans. The commission houses, of course.
would not impart this information to
their customers, but simultaneous with
tile receipt Oh tnlS nOtlCe COITlIllSSlOn-
house managers began persuading GUS
toners that it was time the industrials
reacted and the rails came into their
own. This naturally resulted in profit
taking in the industrials and reinvest-
ment in the rails. with the result that
the industrisls were reactionary while
the rails were strong.
Bethlehem Touches High Mark.
The commission houses also insist
ed on the continuance of their policy
adopted weeks ago. that margins on
purchases of war stocks be very large.
With such safety cushions, Wall Street
is doing much to minimize the col
lapse that is being predicted on all
sides.
Publication of a letter written by
Samuel Cntermyer decrying "senseless
and reckless speculation in the So
called war stocks, attracted much at
tention. While traders were reading
it's contents, Bethlehem Steel common.
of which Mr.. Cntermyer is a substan-
tial holder, touched the new high rec
ord of 399 12, an advance OF "a 1-2
points for the day. Several other war
stocks touched new tops, notably
Westinghouse Electric. Allis-Chal-
mers. American Locomotive. General
Electric, General Motors and U. 8. In
dustrial Alcohol.
For the first tiniDin the memory Of
veteran brokers, some firms were re-
fusing to accept stop loss orders from
customers. This resulted from the re-
fusal of some specialists who are so
busy that they cannot keep record OF
the stop orders and partly to the fact
that commission houses are swamped
with work. Before the crush became
so great, some houses would upon re-
ceiving an order from a customer,
execute it and subsequently call him
up and give the figure at which the
transa ION was made, but houses have
not been doing this the last few days. |
Low priced copper shares were in
good demand, owing to reports that
large block of copper metal had been
sold abroad at 19 cents a pound T. o.
b. Europe. Inspiration, Ray Consoli- |
dated and Miami closed with advances.
The latter's strength. however. was
largely attributed to a raising In the
dividend from IS cents to 81 share
for the quarter.