Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-12-12
GOSSIP OF THE STREET
BROKERS ADVISE
Y IONG" SELLING
Warn Clients Present Rally May
Be Due to Technical Con-
X I,t,n,,s

Be Due to Technical Con.
n ditions
Some brokers say the rally in stocks,
which has been In progress since No
vember 25, Is nothing more than an
advance based on technical conditions.
They warn their clients that 1t is not
to be mistaken for a new upward move
mentment and should be followed only
to the extent OF utilizing it for the sell
Ing of long" holdings in the belief that
IL Will last throughout the months WIN
periodical recessions, and that present
or even higher prices can be obtained
any time between now and Christmas.
During discussion yestetday in the
financial district over the controversy
going OH between General Goethals and
the representatives for the port of Phila-
delphia, a banker remarked that there
was something seriously wrong with
either the manner of going about the
extension and employment Of our port
facilities or with the men whose bust
ness II Is to look after such matters
Here" he said, pointing to paragraph
he had clipped from New York paper
lis an account Of the representatives OF
the American. Exporters and Importers
Association, the New York Chamber OF
mercial organizations in New York
going to Washington to confer with
Csovernment representatives on the ques-
tion of a steady supply Of ocean tonnage
to take away from the port of New
York the freight which is piling up in
warehouses from day to day.
These men," lie continued, "are going
to petition the Government to provide
ships at regular intervals, in which
freight may be removed from ware
houses in New York and vicinity.
!, 1t is said that more than 100000 tons
Of east coast South American export
freight is waiting for shipment.
Criticizes war Finance corporation
. When commenting on ex-President
Taft's criticism of the securities OF
Public Utility Corporations in his ad-
dress on Monday last to the Investment
Bankers Association at Atlantic City,
the principal of an ld-established bank
ing house which makes a speciality of
financing such concerns said he believed
the War Finance Corporation had made
mistake in bringing about the dis
solution of Essential Industries Financ-
ing Corporation. which was formed to
cooperate with the War Finance Cor
poration in assisting utility and kindred
corporations to finance their needs till
after the war. He said the conditions
which called the Essential Finance Cor
poration still exist and the signing OF
the armistice had not the least erect
on them. The War Finance Corporation
held, he remarked, that such 60
between company was no longer needed,
and refused to discount their notes. As
"a matter Of fact. he said, the public
utilities concerns are finding great diff
sculty in securing necessary finances
Through regular banking channels.
studebaker Notes Fail to Enthuse
~ There was some talk about the plan
10 issue s15,0O0.o00 Studebaker 7 pei
cent serial notes in the Street and in
brokers, offices yesterday. but there was
little. or no enthusiasm over the subject
Rumor had 1t that the corporation was
experiencing difficulty in securing syn.
dictate to underwrite the issue. and tna
this was the reason for delay, but. vi
the other hand. 1t is said OH good au
thority that consent has not yet been OBJ.
ltained from the capital issues commit
. tee OF opinions voiced as to the effec
of tnfs issue on the corporation stock. g
majority foresaw an adverse effect, bu
those more conservative say a good dea
( will depend on the conditions and terms
fof the notes, and prefer to walt fol-
these before committing themselves.
n A well-known broker remarked yes
tterday that something would certainl,
arrive soon in connection with Interna
4tional Mercantile Marine II formed this
Conclusion" he remarked. because alb
solutely nothing was reported in con
= flection with the negotiations yesterday
q N IN a
have got beyond the joking stage. Nov
that the United States. instead of thu
!. British are to be the possible purchasers
i expect something tangible to result
from future conferences on the sub
ject."
United States Government Libert,
1 Loan "A per cent bonds were not ma
tterially changed in yesterdays session
still holding below 90, or at a highl!
attractive income-return basis. Their,
was large turnover in the issue, a!
we'll as in other Of the Governments tht
3lss selling below 9S. although only &
moderate amount changed hands.
Interest again centered in the affair.
of the local traction group of securities
y the Interborough-M Metropolitan AIS sell
+ ing below SO and the 1nterborough Rapit
4 Transit IS below so. New York Rail
ways adjustment income 5s touched tn,
lowest quotations yet recorded for tn,
y tissue, when Ave bonds were sold at IA
The New York Railways refunding 4,
broke As Third Avenue adjustment 81
were around 3S and Brooklyn Rapit
Transit rs of 1891 changed hands at 80
All of these quotations represented
. very substantial losses, as compared
with the levels obtaining short tim,
ago.
The cause Of these declines was fear
on the part Of holders that the New
York traction companies will be thrown
u In the hands OF reoeivers unless tn
public Service Commission and the cit!
authorities soon come to the rescue O
3 the various companies and permit
much-needed fare increase. Officials o
the marlborough, as well as the Brook
lyn Rapid Transit, point that the situa
tion Is serious and are apprehensiv,
over the outlook. .- 80 .e,. ..
~ Local bond and investment. house
report greater activity in short tern
notes. Virtually all the recent short
Term issues are selling today at pre-
N MUM, and fractional advances develo
almost daily In many issues.
The principal partner OF a large loca
banking concern says that investors ar
turning toward the long term issues; an,
\ he expects increased demands an,
higher prices Immediately after the frs
4 of the year. . .s.
PHOTOPLAYs