Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-05-28
OUTSIDERS AGAIN
IN STOCK MARKET
Evidence of Public Buying
Seen in the Strengthen .
ing of Prices.
RAILROAD LIST PROFITS
LARGELY BY. THE ADVANCE
Now Enjoying One of the Most Pros
porous Eras in All Their
History.

| NEW YORK. May 27.-The unsettled
condition which so handicapped the Sc
| curity markets since the middle of
April has gradually given place to one
| Of confidence, the chief external evil
| dence Of which is the return of the
public to the buying side of the mar
ket. The result has been substantial
gain in the price list of the leading
issues. more particularly the railroad
| shares. The railroad stocks have. in
| fact, moved forward with a vigor
| which they have not been able to ex-
| hibit for long time; and every at
tempt to depress this division of the
market has been met with such strong
| support that it has not been an easy
process to batter down the recent ad-
vances.
Investors have therefore given their
preference to the railroad shares. their
choice being based on two funda-
mental principles: First. the increasing
net profits of the roads themselves,
and. second. the fact that railroad
securities are in reality the only i'm
portant representatives of our larger
national activities that have not par
ticipated in the inflationary movement
of stock prices as a result OF war
profits, real and imaginary. which have
added such Zest to the security trad
| ing centers during the past year.
Prosperity of Railroads.
There is not the slightest doubt but
that the railroads are enjoying one of
the most prosperous eras in their his
y,,fen nd ck
| carrying out of their constructive and
expansive policies will mean the lay
ing of a firm foundation upon which
| future prosperity may with safety be
based A happy condition has been
reached in the railroad situation in
which 1t Is no longer a popular asset
! for the agitator and the cheap poiltl.
| clan to rail against the policy that
J makes a road successful in spite OF
handicaps: or, to exhaust himself in
the healthful occupation OF trying TO
| tear down what he would never nave
the power to build up. The public IN
teiligence is not so easily fooled by
the lying hypocrisy of these social
parasites who for too long a period
have been thriving from the Industry
the transportation industry was in
perilous condition. Today. thanks to
| the two factors enumerated above,
better day is dawning' and the ne 1 fean
|
the city to every section OF this great
land.
Reference should also be made to the
motor stocks. which have been MAKING
a strong bid for public favor. and which
| in many respects appear able to out
| strip some of their more pretentious
| rivals Despite the rising cost OF gaso-
line and the rather heavy upkeep OF
motor cars, the automobile is fast pass
ing from the classification Of luxury to
| that Of necessity. and such have been
the heavy demands for cars that many
| of the factories are weeks or months
| behind on their deliveries. The decline
| in the price of raw rubber has been fol-
lowed by cut In the price of tires. and
| this has made up, to some extent. the
advancing tendency of gasoline.
Boom for Ford's Rival.
The stock Of the Chevrolet Motor
Company (Which is out for honors over
the Ford cars as a popular low-priced
carl has had a most remarkable record
on tho New York and Boston exchanges.
introduced at IS, 1t quickly rose to $50.
and in the current week sold as high as
247 It's supporters claim for 1t an in
| trinsic value even in excess OF present
market prices. But this. of course. re-
mains to be proven.
| In this group also belong General
Motors. which on one day this week
rose Sc points: Studebaker. an old and
| reliable company. turning out a ster-
| ling product: Willys-Overland, popu-
lar concern with reputation; Chandler
Motors, Maxwell and many others.
Investment bankers continue to re-
port a healthy and almost Unsuitable
| demand for the best grade of bonds:
and were 1t not for the uncertainties
in the foreign situation, the probabili-
| ties are that the best investment issues
would sell considerably higher than
| they now do. The investment inquiry
for some issues has enlarged in almost
speculative securities has declined. This
movement has been all the more re-
markable when 1t is judged in con-
nection with the continued liquidation
| American securities has been an i'm
portant factor for months. represent
| ing in the aggregate the largest valua-
ton ever touched by such a movement;
| excellent resistance, but in many in
| stances have advanced steadily in the
| face of this liquidation. A large amount
Of financing by American corporations
| will be arranged for from time to time
| as occasion demands. There have been
various rumors Of new applications for
| loans to the belligerent governments,
but nothing has developed to indicate
that any large applications. involving a
public offering. were actually pending.
Intrinsic conditions are sound. the coun-
try Is making steady progress and
should favorable developments in the
European situation be reported. there
could easily develop a much better re-
Spouse to favorable news than the Sc
curities market has thus far reflected
| Cereals and the Farmer,
| There has been considerable i'm.
provement in the condition Of winter
sections Of the west and middle west
are expected to respond heavily to the