Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-12-26
BUYING
OF RAIL STOCKS
Presidents Action Lifted q
Heavy Load From the Minds
Of Investors
MARKET POSITION SOUND

New York. Dec. 26.-The Evening
Sun in its closing financial review today
says:
The action of the stock market today
was corroborative of the opinion held
in important circles that stocks, which
have in recent weeks been in process
of transfer from weak to strong hands
are in extremely sound position. The
immediate cause of the buying movement
today was the proclamation issued b"
President Wilson announcing that the
railroads would be returned TO their
owners on March / next.
This information lifted a heavy load
from the minds of investors and resulted
in the most animated buying of railroad
shares witnessed in many sessions.
While net gains were not very striking
due to the multitude of problems still
to be dealt with and the uncompleted
legislative provisions for the return of
the carriers, it was to be noted that
railroad stocks were not in liberal sup
ply.
Improvement in this quarter ran from
| to 3 points in the forenoon, followed
by moderate recessions in the later deal
ings. Reading, Southern Pacific. st.
Paul preferred, Atchison, New York
! Central and many of the low priced
| issues sold at the best prices of the week
! Pere Marquette, which has been dis
playing independent strength right
along, jumped more than three points
to above SO, new high figure for the
year.
1t was in the industrial shares, how
ever, that the greatest buoyancy was
exhibited, particularly in those stocks
in line to benefit most by the restora
tion of the railroads to financial pres
ments. Heavy buying of United States
Steel, Republic, American Locomotive,
Baldwin and the like furnished the
backbone of the upward movement.
Advances of from 2 to 5 points were
shown by this group in the early after
noon, United States Steel crossing 106.
Republic 115 and American Locomo.
tive 1902. Strength was communicated
to all departments of the market with
but few exceptions. American Telc
phone was one of these. the stock slip
ping back a point or so to ground it's
low figure for the year.
High money rates, while serving to
ho'd speculation within moderate
bounds, did not prove as detrimental as
expected. Call loans renewed at 10
per cent and were quoted at II per
cent early in the afternoon. But for
this the buying movement might have
been much more enthusiastic.
Selling to establish tax leases appears
to have been pretty we'll completed
Those who have been postponing repur
chasing their securities in hopes oi
obtaining lower prices found their posi-
tion today far from satisfactory. See
ing that the market was getting away
from them this element probably die
some hasty buying,
Corn products directors declared III
initial quarterly dividend of l per cent
and an extra of x of I per cent or
the common stock. This action hat
been expected and proved to have beer
pretty well discounted by the recen
advance in the stock. Other dividend
action announced was an increase IL
the rate on California Packing from
to 6 per cent annually. Inspiration
copper directors declared the regula,
quarterly payment concerning whicl
there had been some uncertainty. Al
the copper stocks turned stronger fol
lowing this announcement. Tobacco
and oil shares Joined in the upward
; movement, Mexican Petroleum gettinl
above 222