New-York tribune., 1919-12-06
Bear Panic i'm
Southern Pacific
Features Market
Sensational Advance Fol
lows Decision to Abandon
OilLand Suit-Industrial
Stocks Hold Well

Unexpected announcement of the
governments decision to abandon its
suit against the Southern Pacific, in
volving title to more than 100000 acres
of valuable oil lands, caused a bear
panic in the stock of that company at
the opening of the market yesterday.
Before trading began a large number
OF brokers had congregated at the
Southern Pacific post, most of them
with substantial buying orders. and
few with any stock to offer. The re-
suit was an initial price Of 1O4, up 87s
points from the close Thursday. The
scramble to buy was SO great that the
price fluctuated wildly in TIE early
trading, the range being from 101 to
109, at which price the stock showed
an advance of nearly ii points.
When the market settled down the
price became fairly stable in the neigh
borhood of JOG, closing at 1863 for a
net gain of l1"s points. Transactions
in this issue We're almost three times
as large as the turnover in United
States Steel common, which commonly
leads in the volume of dealings.
Save for Southern Pacific, railroad
stocks were quiet, but the industrial
section was about as active as on
Thursday and displayed firmness in
cialties, particularly the Marine issues,
were quite strong on rumors of i'm
pending disbursements. Local traction
securities, after showing some strength
resulting from buying based on a re-
port that funds for meeting January
fixed charges of the Interborough had
been provided, weakened and most Of
them closed at slight net losses.
1t was apparent that the market as
a urbn hn Nf
sional traders again, with pool opera
tions playing less important part
Sentiment among traders remained op
timistic for the most part, but it is an
interesting fact that, reversing the
usual process, sentiment is following
prices, instead of prices following
sentiment. In other words, Wall Street
is cheerful and buys stocks because
prices remain firm in the face of un-
favorable developments.
Short covering continued in some
issues, but on the other hand fresh
commitments on the short side, as
sisted by profittaking sales, were of
sufficient volume to hold the market
partly in check. Those stocks which
have enjoyed the widest advances were
the principal targets of the bears, but
cons iderable resistance to selling pres
sure was exhibited.
The conviction that a trading market,
with frequent price movements in
both directions, will continue through
the remainder of the year is still held
by the majority of traders and brokers.
1t seems to be the consensus of opin-
ion, however, that a sharp movement
in one direction or the other will come
shortly after the turn of the year.
Foreign exchanges weakened again,
with sterling touching a new low.
TCo of ~
change, however, being concerned
chiefly with the technical position of
the stock market itself. The argument
is heard in some quarters that weak
ness of the foreign exchanges is good
thing, because it will discourage for
eign buying, and that goods will con-
sequently be sold at home for cash, in
stead of abroad on credit. The eco
nomic absurdity of such an argument
is so palpable that it receives no con-
sideration among intelligent students
Of financial and business prospects.