Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-10-12
DAY OF TUMULT SETS
MANY new HIGH PRICES
Motors, OIL Stocks and Tobaccos Are
Leaders, but Steels Are Also
Strong.
VOLUME OF TRADING MA.. Y
Prices Of Active Stocks So High anil
Brokers Timid on Loans That
Market Is I'm Strong Technical
Condition.
by BRoADAN WALL.

NEW YORK. Oct ll.-Another tu-
multuous day in the stock market left
scoreH of stocks with net gains and
many at new high prices. Motors. oil
STOCKS and iobacc0s were the leaders
but the stecis were also strong and
even some oil the railroads had the
audacity 10 show fractional gains The
volume OF tradins Was heavy and to-
ware inc cnd OF the session it was
iarseiE for the accent of professionals
over the double holiday.
g. mere are three fundamental reasons
LOT the present advance in the market:
me hrst Is the unwillingness OF very
sich men To- sell OH account of the in.
minority of most stocks.
sb The second is belief that the Boi;
strike has demonstrated the loyalty 'V Of
american labor that the new ora
bv ppb5o Pro 1eaE vii no, be ~snterrup,ed
month ago This means large and
continuous earnings.
The third reason is that the Supreme
court Is expected 10 declare stock divi-
bends not taxable.
Fresh Buying Expected.
no relieving this decision there will
reduction in the selling prices OF stock $
mat viii encourag~frCsh buying on tn.
part OF the public.
Stuoe BAKER. Pierce Arrow, StutZ. Will
iys Overland and Saxon. and even Max
~cli. showed great vitality today. The
hrst four were particularly strong.
mailing new high records and holdings
most OF the gam. These advances can
not all be due to short covering. bu,
some OF them are. For instance there
Is an outfit Of bankers that have been
nuying Saxon steadily and who believe
as there is. This stock. therefore. should
ADVANCE regardless OF its intrinsic
merit.
Ono hears SO much OF the short in
h.F sc grcl I'M. Ion n
believe ii is II talk. but il is not Take
the case OF the tobacco shares. The
s,;o,calied Waldorf crowd has lost mil.
lions trying TO check the advance of
The Duke Whe!an group and are still
heavily short and in an exposed post
Mnny Short on Steel.
Not only are there shorts in such
stocks as might be considered special
Ties. but many persons run short OF
stee! when the strike was threatened
as hedge against their other sccuri-
ties. Judge Gary's admission OF the
high asset value Of steel has been fol-
lowed by such nation wide buying Of
tho stock that these shorts arc hope
lcssly en,rappcd Nothing short OF a
disaster of the FIRST magnitude Will
save them.
proof when {, comes to disasters.
Prices OF active stocks are SO high and
brokers gre SO 'itnid about making
strong technical condition. Prices are
high. but Il there is TO be peace In
the labor market they have not dis
counted the prosperity that les in tho
next I'VE years.
This sperity will md the auto
mobile in the front OF American in
dustries. 1t is getting monotonous 10
repeat this over ond over, but II is a
4 truth that cannot be hammered home
too hard. The automobile stocks and
tthc oil stocks arc sure 10 reap the first
and Grcarcat benefits OF the new pros :
pcrity. Earning! 'n these companies
are phenomenal and they seem to be
just AZ tho beginning Of great business
campaigns.