Evening star., 1918-05-19

NEW YORK, May 1S.-There was
buying again in New Haven and st.
Paul common and preferred. as well
as in the Eries and Reading, with the
chances of those stocks showing
further improvement.
The liquidation in the general in
dustrial list caused the sharp setback
In prices. for most of them were
mainly In the way of profit taking
sales by local traders in evening up
speculative accounts over Sunday. 1t
was Offset by the bullish activity in
Marine common and preferred and a
number Of other specialties.
From the action of the market
Throughout the trading it looked as
though the market would do better on
Monday. barring any unfavorable war
news.-S. B. Chaplin & Co.
Logan 4 Bryan-Considering the
xact that quito a little realizing took
place anc that some uncertainty was
provoked as a result of the develop
ments SO. far with respect to the
sta1us of the steel trade and the sug-
kestion that larger portion of pro-
0uctfve capacity may be diverted to
MI governmental requirements the
stock list acted very well.
the impression is general that in
tefesting occurrences in the war zone
are close at hand. which is having
q tendency to cause some restraint
IN certain dfrections: but, even so,
there has been much confident ac-
cumulatton of stocks. particularly the
vored in the near futurA by substan-
ttal increases in freight And passen-
ger rates. OF course, with the car
S1ers working on restricted earning
basis as result Of their Agreement
with the government, the benefits of
increased rates will be indirect rather
than direct. but. even SO, such in
creases as may be granted during the
war. 1t Is confidently predicted. will
Pc In large part returned after hos
tiitties cease, which should Improve
the financial position Of the roads
and enable much needed improve
ments and betterments to be made
meanwhile by the government
The advance has been rather rapid
but, even so. the general trend Of
security prices still appears to us
to be upward.
4 understand from an excellent an
thority that the extent OF the profit Q
OF the British income tax and that the
outlook at this time is favorable
The big steel men are having meet
Ing this morning at Judge Gary's house
under discussion-Morse.
Buliish movements in the market are
expected to be more Of a special nature
until the advanced level is digested.
Coalers are much favored Generally
speaking. purchases on recessions should
give profitable turns.-News Bureau.
Investment experts are taking the DO
eiuon that many good dividend-paying
Stochs and bonds Of important railroads
are still selling at prices entirely too
low considering the security provided
by government control Of operation and
the physical and financial condition Of
the carriers.
The conviction is held in a number
Of large houses that practically only
the short interest left in the market
lies In the Motor group.
specialists report indications of un-
easiness on the part of bear interests
. IN Willys Overland. Studebaker and
General Motors.
1t Is that certain revisions are being
made In the terms recently announced
duetrial corporations to a degree that
win in all probability materially in
crease the net returns to be received
from government work
Commission houses are recommend.
Ing the purchase of Great Northern
Ore. KennecutNCopper, American Stesi
. Foundries. Republic Steel and Ameu.
pan Can. all of which appear to be f.
y ffacting outside attention of mors. or
less extensive character.
Attention is being drawn in consesva-
i've quarters to the point that ;saiI-
way Steel Springs common sto-x is
pow selling far but Of line with TIE rest
Of the equipment group.-Moler
Reactions from the excitss mar
kets of this week are natural
and, in fact. necessary " avoid
irrational plunstng in to buy be-
cause prices are rising rspidly. and
not because Of merit or meritorious
prospects kind of speculative
furore which is bound. II unchecked,
TO result in conhagrations.
The favorable underlying conditions
still exist. Prices have only here and
there risen beyond Investment values
The requirements OF the new liberty
loan have been thus far easily
financed. the favorable crop outlook
has had further good weather to en-
nance II. and the country's business
Is in enormous volume. and, on the
whole, accompanied with good profit
margin Distribution of large earned
surpluses or rearrangement of them
for the benefit of stockholders seems
at least to be foreshadowed
Possibly imitation is having its ef-
feet. but it has net been brought
about by lack of business conserva-