The Washington herald., 1918-01-05
From the Financial Ticker

Early in the day the market on
the Consolidated Stock Exchange de-
veloped flrmness, with the railroad
shares leading an advance in prices
for a time Reading and L. p. were
particularly prominent in this up
ward movement, but later, as the
time approached for the delivery of
President Wilson's raidroad address
to Congress. there was a general re-
action. Traders who had turned bear
ish took the ground that, with the
message delivered, the good news
was out" They also made capital
of the fact that the President in
his address asked no guarantee for
the immediate financing of opera
tions at this time. That Is to be
done by the Secretary of the Treas
ury later. So far as other market
influences were concerned, there was
less talk about the Russian situa-
ton shaping favorably, 1t being fear
ed that, even with separate peace
negotiations broken off. the Russian
army was in such a chaotic state as
to pfeciude "a resumption OF effective
warfare against Germany. Y. S.
Steel. the leading industrial in the
, trading, opened at So rs, up Ia Of
point from its closing on Thursday
and early sold as high as Sc 1-2,
but It broke well under 50 after the
delivery of the President's-message.
Among the early high prices attain
ed in. the market were: Reading,
&c 3-4; Up 25-S points from Thurs
days closing; L. p, III S-s, up ! ii
points; B. 5. B., 81 IL up IS Of a
point.
Reactions followed in the second
hour in botn rails aud indusuiRls,
hut brought out very little stock.
Coppers. displayed strength. A num-
Der of the copper companies. includ-
ing the porphyries. have submitted
to the Treasury Department a mem-
orandun asking for allowances un-
der the excess profits tax to cover
depreciation and depletion. Some
large copper interests. it may he said,
are very sanguine that the Treasury
Department will grant them a sub
stantial allowance.
Rails were again buoyant. with
Reading a leader. )
G. o. was strong and in demand.
There has been good buying of
c. o. on the belief that the per cent
dividend rate will be restored.
1t will be recalled that the rate
was reduced to per cent TO meet
certain financial requirements which
have long ago been fulfilled.
A Wall Street man who has spent
months in Washington and who has
been in touch with the leaders there
says, in connection with the rail-
road situation. that the Wilson pol
icy favors the payments of every
reasonable demand of both labor and
capital.
The President, ne said, wants IT
understood that the railroads have
been taken over strictly as a war
measure and that nothing whatever
must interfere with the most eff
cient management of the roads.
The official family in Washington.
according to the impression he re-
ceived, would frown on anything
which might be interpreted as TAX
ing undue advantage of the govern
ment under government MANAGEMENT.
Stocks showed further improvement
Will dCtlNily well ulNlutu DtlNttii
industrials and rails.
Much talk is heard regarding the
sudden reaction in the late trading
Thursday. The consensus OF opinion
is that stock losses were present in
large volume and thus caused a nat
ural reaction. The overnight news
was entirely constructive, and moth
ing was found in it to warrant Thurs
days slump. The Steel Corporation
bought between 5000 and 5000 Steel
common. The assumption that this
stock was bought on the way up
from 50 is unfounded.
1t is more likely that the stock
was accumulated from 1l0 down. A
block of 1000 shares was purchased
between 50 and 81, according to re-
ports from the floor. 1t was not
the buying of the Steel Corpora
ton, therefore. which stimulated the
market in the last five or six days.
Transactions of over 800, 900 shares
a day for a number of days leads
to the conclusion that the public was
the big buyer of this popular sisue.