The Washington herald., 1920-10-01
RAIL STOCKS
AGAIN FEATURE
Improved Rail Outlook Held
Responsible for Present
Good Market.
INDUSTRlALS DECLINE
Certain Securities Reach
Lowest Quotation on
Record.
INDUSTRlALS DECLINE


the railroad shares, with further
weakness in the Industrial depart
ment. characterized dealings in the
stock market today. The persistent
selling of the industrial list in many
instances resulted in new low lev
,els for this movement, and in some
cases the lowest prices in history.
Closing quotations for the indus
trials were around the lowest of
the session. while the final figures
for the stocks of transportation
companies were near the best.
IndustriaIs.
The Industrial issues have reach
cd the point where many bankers
and brokers believe that they have
abount discounted the worst that
can happen. They point out that
the corporations will have to take
heavy losses on account of depre-
ciated inventories, but add that
their profits have been so great
since the beginning of the Euro
pean war that losses can be taken
out of the surplus earnings of pre-
yious years without resulting in
recourse to the bankruptcy court.
Attention is also directed to the
fact that the unfavorable factors
which months ago were viewed
with apprehension and which re-
suited in the depreciation of the
quoted market prices of the indus
trial shares are daily becoming
public. To those taking an optimis-
tic view of the situation the worst
is about over
Rail Stocks.
Quite a difference of opinion cx-
) lists as to whether the present ac-
tivity in the railroad department
represents real buying by impOr-
tant people. Large commission
houses declare that their custom
ers are purchasing railroad issues
on but a limited scale, and the aG
Eregate of these shares being car
ried in margin accounts is small.
The assumption is therefore made
that the buying is for the account
of inside interests. One point in
favor of railroad securities. how
ever. is found in the fact that the
outlook shows considerable i'm
provement. This statement is made
on the authority OF a prominent
railroad executive.
Pittsburgh and West Virginia con-
tinucd to be purchased on a liberal
scale. Directors Of this property
have under consideration plans for
the segregation of its coal proper
ties but a very important announce
msnt is expected to be made public
within the next week and some OF
the buying OF the stock today was
declared I" BE- in anticipation Of the
PRONUNCIATION OF the good news.
Tires.
Some of the tire manufacturing
companies have decided to take the
bull by the horns and cut prices.
\ substantial reduction. probably
, per cent. is expected to be an
nounced tomorrow by one of the
smaller companies whose shares are
traded in on the New York Stock
Exchange. The curtaiIment of grU-
duction by the tire concerns may be
realized from the fact that within
the last month $1,000 passenger
tickets have been sold at Akron to
people who left that city because Of
unemployment The tire companies
have reduced their output by ap-
proximately so per cent, according
to one authority.
Call money rose to per cent
which is the highest point reached
in some time.
The financial district is looking
for a reduction in the prices of pc
trOleum and its products. 4 cut in
prices is expected to increase the
consumption of fuel oil A price
cutting campaign is also expected to
result in the absorption OF some Of
the small producers by large COM
panies.
Motors.
Motor shares were again under
pressure. General Motors showing
particular weakness during the ses-
sion, at one time showing a decline
of Z points, which is a new low
record for the present outstanding
shares.
Public utility issues continued TO
be more favorably regarded