The sun., 1919-10-07
MONTREAL BULLS
SHOW ACTIVITY
Confidence Inspired by Resist
ance Of Steel Corporation
to Strike.
SEE END OF CONFLICT
Canadian Industrial Stocks,
Which Had Been Ruling
Low, in Demand.
SEE END OF CONFLICT

Special Correspondence to the Canadian
Section Of THE Sun.
MONTREAL. oct. 6.--The week in the
| Montreal stock market was enlivened by
an extraordinary bull activity on Tues
day, the origin Of which is little OBJ
scure. 1t seems. however, to have been
| inspired by the feeling that the sue
| cessful resistance of the United States
| steel interests to the strike of the steel
workers unions marked a turning point
in the labor conflict on this continent.
In this belief buyers rush into the mar
ket with great precipitation to acquire
/ Canadian industrial stocks, most of
| which have been ruling at prices that
| would certainly be regarded as low if
! there were any assurance of industrial
peace and enlarged productivity for tho
next year or so. The available market
| supply on these securities being de-
cidedly limited, the influx of open orders
had the effect of running up some Of
| the stocks to the extent of 10. Is and
| &c points, frequently with jumps of l or
Q points between sales.
| on the following days. however, 1t
| became evident that buyers need not
have been quite so pressing in their de-.
mands. The spectacle of the new price
levels began to prove tempting to profit
| takers and considerable offerings had
| the effect of taking off large part of
the rise established on Tuesday. How
| ever the week closed with distinct
| Improvement in almost all Industrial
stocks over the figures of the preceding
| week.
On Friday and Saturday the stock
| of p. Lyall & Sons Construction Com
pany INDUCED in a special boom of
| it's own, putting on a. further AZ points,
| which took 1t to 137-after which it was
| quoted $50 asked. las bid, no sales.
The reason for this movement was the
semi-official report that the company
was perfecting plans for manufacturing
| a motor car that can be sold to the
| Canadian consumer at a price of about
s600-or about 5000 less than the Ca
madam price of the cheapest available
| car Of to-day. While a new enterprise
| OF this kind involves some speculative
risks, the Montreal market has great
| deal of faith In the ability of the Lyall
management to achieve success in any
line that it undertakes. The closing bid
of l45 represents n rise of 60 points for
| the week.
| Confidence in Manufacturers.
One of the psychological features of
| the present Stock market in Canadian
| Industriale Is the new confidence ex-
| hibited by Canadian investors in the
| ability of their manufacturing plants to
| undertake successfully the most novel
and difficult types of business. Prior to
! the development of the shell industry in
| Canada, early in the war. it would have
been impossible to work up any extern
| sive market interest in the plans of an
| Industrial company for manufacturing
| a new motor car, as in the case of I.y-
all's, or a new and highly complicated
| class OF machinery, as in the case of
| Dominion Bridge and its paper machine
| contracts, particulars Of which appeared
! in THE sun last Wednesday To-day
| such adventurous enterprises are re-
| garded as perfectly feasible and as
forming n sufficient reason for a heavy
| rise in the price of the securities CON
| cerned.
Dominion Bridge went TO l17K on
the combination of It's paper business
! and the general bullishness, but reacted
| to los. The three steel stocks were con-
| siderably affected by the bull move
ment, notably Steel OF Canada, which is
the most closely held of the three and
is regarded as having the best assur-
| ance of increased prosperity in the near
| future. Atirmations and denials con-
| corning the steel merger were rampant
| during the week but the market paid
practically no attention to them. The
general feeling is that the merger is
certainty for some time in the next six
| months. and that the nearer II comes
! the NOR formal and emphatic will be
| the dCnials.
The lesson OF the week appears to be
that the Canadian industrial stocks are
very difficult to secure in any large
| quantities without a decided increase
| over previous prices, so that any definite
| news in the way of an improvement in
the labor situation. either on this Con-
tinent or In England, should be the sig
nal for marking up of or 10 points
| over the level established on this weeks
| closing reaction.
The proceedings OF the Canadian
Trade and Labor Congress no doubt had,
| an encouraging effect upon the stock
market at the beginning of the week
| They resulted In complete triumph OF
| the conservative and moderate clement
a triumph so complete that the revolu-
| tionary leaders and the One Big-Union
! men withdrew in disgust before the con-
gress came to an end. The general spirit
of the congress was thoroughly sound
and patriotic, and gave good reason for
the hope that labor and capital will be
| able to settle down together in this
country for a period of maximum pro
| duction without any serious disturbance.
Milling Profits Decline.
The only important annual report sub
| mitted during the week was one that
showed a considerable decline as com
| pared with the preceding year. This
was the report Of the Lake of the Woods
! Milling Company with milling profits of
! S547152 a compared with S601,520, and
other profits Of S209,463 as compared
with S256,3s4 making u total decline of
Sl0l,2sS There is, however, nothing Of
a depressing character in this announce
| ment. since the profits for the year to
August 81, 1918, We're abnormally great,
| owing to the export situation and the
| rise in wheat prices; and the profits for
| the past year were sufficient to leave a
surplus OF s203,6l6 after all dividends
| and the usual writing of of S1OO GOO for