Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-10-01
RAILS were Strong.
INDUSTRIAL EAS|ER
Bears Attack Sugar Stocks
SuccessfuIy-Motors
Showed Resistance.
BY STUART p. WEST.

NEW YORK, October 1 Especially -
New high prices for the railway shares
and new low prices for a number Of in
dustrials were again the outstanding
characteristics in the market today. 1t
was the same sort of a market which
we have had almost constantly for the
last two weeks and it, of course. re-
Elected the preponderating sentiment in
speculative circles that there was still
much room for speculation in the rails
in measuring the effects from the new
rate schedules, while the industrials
could not be expected to do better until
an end could be seen in the price-cut-
ting campaign.
There was very little in the way of
outside news to influence calculations
one way or the other. The Mercer and
Locomobile companies joined the
frightening list of motor concerns in
reducing their list prices. The Lee
Rubber and Tire Company announced
a cut in it's tires of from Is to 20 per
cent, and gave as the reasons. first. a
desire to stimulate new buying, and.
second, the heavy decline in crude
rubber and in fabrics during the last
few months.
To offset these unfavorable items of
domestic trade news there was the
the water that the Great British coal
strike was off indefinitely This i'm
mediately made itself felt in the sharp
upturn in sterling exchange.
More Strength in Motors.
1t was notable that the motor
stocks. as rule, did not lose any
further ground, and that most of the
tire stocks held very firm. This could
reasonably have been accepted as an
~av~ke Nf
the market unfavorable trade reports
have pretty well lost their influence.
On the other hand, very bad break
occurred in the sugar stocks, carry
ing some of them to the lowest prices
of the year, this break following the
news of further cut in refined
sugar. There was a determined effort
to force down the steel shares. which
met with some success temporarily in
the case of Steel common and Bethle-
hem Steel issues, but did not make
much Roadway against Republic Steel.
AS against these points OF weak veal;
ness. increased resistance was mani
tested in the shipping group and in
the oils, while the equipments con-
tinued to hold steady, as they have
all week.
Rails Move Upward.
The railway shares were in class
by themselves. as they have been rign.
along Interest was equally DIVIDED
between the junior rails, which are
dividend payers. which have now fa!-
len into line with the improving drift
of the investment market in general:
Southern Pacific. Union Pacihc.
Atchison, New York Central and the
Hill shares all went we'll above their
nreyious highs. Norfolk and West
ern got across par. Reading, which
has been rather disappointing. finally
Joined with the rest.
There was unusual activity at the
same time in stocks which ordinarily
are inactive, such as Chicago and
chesapeake and Ohio. st. Paul pre-,
ferred. Missouri Pacific preferred and
baltimore and Ohio were the leaders
of the medium-priced rails. among
the low priced issues the heavy ana
persistent buying of Chicago ana
Great Western common ana preierreo:
the activity and strength in Missouri
Pacific common and the strength or
Kansas City Southern, Wisconsin
Central and the Wabashes was the
feature.
shorts Cover Freely.
For several days experienced OBJ
servers have been contending that
there was altogether too much bear
isbness on the Industrial stocks; that
the proportion of short selling to real
liuuidation was unusually high. and
that, the short interest having grown
to large dimensions, the market was
becoming oversold.
This analysis was fuHy <oorne OUT
nv what happened in the final hour.
The drive against theesugars and the
steels had failed to bring out real
stock in the rest of the list and this
was enough for the shrewder traders
on the short side.
They started in to cover in the final
dealings and prices rebounded rap
idly a point to three points all
around Mexican Petroleum and Pan
American and Texas Company among
the oils, Crucible and Republic
among the steels and Baldwin among
the equipments came back the most
readily.