The Washington herald., 1920-04-15

POOLS STILL
HOLD SWAY
No Steps Taken to Check
Gigantic Stock Market
.Manipulations.
NEW JEADEpc AppEAR
NEW LEADERS APPEAR.
fierce-Arrow Comes to the
Front as Pool Starts
Broad Operations.

New York. April IA continual
tion of the gigantic pool operations
was again conspicuous in today's
stock market and many issues were
forced into new high ground.
An easing OF in money rates and
persistent talk of numerous i'm
pending stock dividend declarations
were the main basis of the con-
tinued upward swing.
There is no secret to the present
stock market situation, Strong
speculative interests are favorable
to- higher quotations, and there is
reason to believe that manipulation
on a large scale will. continue for
some days to come. While il is the
general opinion among the more
conservative element that underly-
ing conditions do not warrant pres
ent operations, the banking element
is doing nothing to check further
imitation.
Stock Dividends and the Public. -
Stock dividends might temporarily
prove profitable to those who en-
deavor to make their living trading
in and out of the stock market, but
in the end they can only mean a
white elephant" on the hands of
the public. In most instances every
dollar given out in increased capital
ization means that the company in
question is inflated to that extent
And il should not be overlooked
that eventually most of the melon"
companies will be controlled by the
public. who in turn. will wonder why
they ever entered the melon patch"
That is to say the public wifi have
a lot Of stocks at very much lower
prices than they paid for them, and
In some cases stocks with little or
no value. Stock dividends, in the
opinion OF many conservative in
Nestment students, is just another
manipulative phase of the present
situation existing in the stock mar
ket.
Ameriean Tobacco Dividend.
The official announcement of the
80 per cent American Tobacco stock
dividend follows. along the lines sug-
gested in this column several times
of late. 1t is now expected that de-
vclopments temporarily favorable
to shareholders Of the American To-
bacco Securities Corporation and
United Retail Stores-the so-called
Duke-Wheland group-will shortly
take place. Contemplated plans
call for the dissolution of American
Tobacco Securities Corporation.
whose shareholders will be given
American Tobacco stock on a basis
of twenty-five shares of American
Tobacco for every 100 shares of To-
bacco Securities held. In addition.
II is said that Tobacco Securities
stockholders will be favored with
an outright gift of twenty-five
shares of American Tobacco stock.
Retail Stores. interviewer in both
corporations, naturally will also
come in for a s'ice Of the spoils.
Pfrrce-Arrow Conspicuous.
Pierce-Arrow was a feature on
the upward side of the market to-
day. displaying a substantial ad-
vance on an encrmous turnover. 1t
now looks as though the pool be-
hipd the stock has really started
operations on a large scale. and ii
would not be surprising il the issue
showed some sensational market
gymnastics in the very near flu
turc. Wall Street Is full of talk
linking Piercc-Arrow with General
Meters. 1t can be said on good au-
thority, however, that so far Gen
eral Motors interests are unaware
of any such development. But that
is unimportant. II Pierce-Arrow
is going to follow along the lines
mapped out for many other issues.
its stock is going higher. irrespec-
tive Of intrinsic value or important
connections that will possibly never
materialize. Manipulation will be
effective as long as manipulation
is encouraged by the proper au-
thorities. In the case if Pierce
Arrow, however. manipulation
might be carried too far. in which
event a runaway market could be
looked for, In fact. it might be
said that this is q development the
pool operating in the issue is most
worried over. These gentlemen are
sure of their footing insofar as ad-
vancing the stock is concerned. but
they do not want to advance it too
rapidly. Real distribution cannot
be successfully accomplished that
way.
studebaker's sharp Uuturn.
Studsbaker turned sharply on
the shorts today, and It looked as
though a goodly portion of the old
line existing in the issue was run
in. However. it might be men
toned. that traders are selling
Studebaker heavily at every upturn,
their operations being based solely
on the fact that this company has
already cleaned out its melon"
patch. and therefore, the result can
sa1y mean imitation. Talk of a 10
per cent cash dividend was rife.
and while this Is possible. it would
only work toward weakening the
company's underlying condition.
The stock has earmarks of going
much higher. but manipulation
seems the only reason.
what the Public should Expect.
Some day the present gigantic
manipulative operations in the
Ftock market will come to an end.
Just when that day will come is
nroblerlatical. The public. natural
W. will be a marty to this ending.
VI will probably be "one Of our i'm
portant stockholders" as the ma
ripulator hopes to say. Whether
- not he will be able to make this
little speech rests with the nublic.
II is the public that should now
erSeavor tn find out the true con-
ditiops existing. what stocks are
raslry worth tsEtng even a specu-
lative chance with. and what stocks
Pra- already selling too high. II
I'll rot he a ditficuit undertaking,
srd. one that should prove profit