The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-26
SPECTATORS TAKE
EXCHANGE PROFITS
Selling in Canada and Buying
in London q Feature Noted
in Montreal.
SLIGHT PRICE MOVEMENT
Nothing Develops to Justify
Prediction of Grand Down.
ward Tendency.
SLIGHT PRICE MOVEMENT

Special Despatch to Odnddtan Section OF
THE SUM-
MONTREAL, Aug. achievements In
stock prices for the week were insignia
cant, except in the case of securities In
which there is large British interest,
such as Brazilian, when the violent
drop in sterling exchange prompted
lot of arbitrage selling. This selling
was described by most of the news
papers as being carried on by British
holders, but good deal oft was really
done by observant spectators on both
sides who sold in Canada and bought
in London at the same time, achieving
a neat profit through the cheapness of
sterling exchange. The scramble eventu-
ally broke the price to 20. drop OF
points, but this was followed by
prompt recovery to 52&. In these days
of rapidly fluctuating exchange rates
there Is a chance for easy money maxi
ing in securities quoted simultaneously
on the two markets, especially IL neither
market is sensitive enough to adjust It,
self Immediately to the exchange fiuctua-
tions.
over half the stocks on the list show
UNCHANGED" on the weeks transactions,
though of these the majority sagged a
| fraction or more about Wednesday, only
to recover in the firmer market at the
end of the week. The remainder are
still down a fraction, or as much as two
points from the opening. Canada
| Steamships common was an exception,
showing a rise of q, but this was
merely a return to normal following the
disappointment Of holders over, the I'M
changed dividend declaration a week
previous. Wayagamack, with a rise of
two points, reflected a sudden demand on
| Saturday morning, due to further
strength in the kraft paper situation and
the successful entry of this company
into the British field.
Steel Stocks Depressed.
All the steel stocks were depressed by
heavy selling in the middle of the week,
| but Scotia and Canada returned to
their starting point on Saturday and Do
minion Steel was only point down.
Altogether the market behaved very well
during a trying week and did little to
justify the claims of the bearish that a
grand scale down movement has begun.
| There was even rise of ten points at
the weakest time of the week in the
stock of Lake of the Woods Milling on
the decision OF the directors TO seek au-
thorization for an increase of capital
stock. But it eventually lost four points
| of the gain. Some spectators evidently
| had the idea that the new issue would
involve some sort of a, plum for share
| holders, as It we'll might with existing
stock selling at twice its par value, but
| in the present agitation about profiteer-
ing 1t would be difficult for a milling
/ company to get away with anything at
all generous in the way of melon cutting.
Uncertainty on Commerce Court.
There is a growing apprehension
among business men OF the possible re-
| suits OF the operations of the newly
| created Court of Commerce. The chair
man OF the court Is Justice Robson
| of Winnipeg, a very sound and capable
| jurist, but one who during his tenure OF
office as Public Utilities Commissioner
of Manitoba showed no special sympathy
for corporations or invested capital. The
second member. W. F. OConnor, is an
experienced civil servant, but Is not con-
sidered likely to exert much influence on
the policy of the court. The third mem
Der has not yet been appointed, and the
fGovernment Is being subjected to a great
deal OF pressure from various quarters.
II an experienced business man is sc.
lected there will be an audible sigh o.
relief and a feeling that legitimate bust
ness profits and the necessary freedom
Of buying and selling will be protected
Tho terms Of the act give the court i'm
mense but vaguely defined powers. anC
until those powers and the spirit IL
which they are to be used are mad,
clear there will be a great deal of hest
tation about committing capital to new
enterprtsea
The court has already been asked 4
put q stop to alleged exorbitant rents II
Winnipeg. The big newspapers are ex
pected to use It as a convenient grount
for their operations against the news
print manufacturers. Indeed. one Of tn
worst features Of the whole situation 4
that there will be such a mass Of DIFF
ferent questions presented for its ruling
that the court IS sure to get hopelessl!
behindhand in dealing with them. thu
causing protracted uncertainty in bust
ness circles.
The following table gives the tota
sales, high, low and last prices and ne
changes of all stocks and bonds TRADED
in on the Montreal Stock Exchange fo
the week ended August ga: