The Washington herald., 1920-09-05
Absorption of Rail Securi-
ties Features Past
Weeks S Trading.
OIL STOCKS IMPROVE
Details of New French Loan
To Be Made Public
Next Tuesday.

There was a feeling in Wall
Street after the close OF business on
Friday that the present affords an
-cpportuae moment for the pur-
chase of securities, particularly rail-
road stocks, with view to realizing
handsome profits later on. The
p banking element which was advis-
ing the purchase of railroad
stocks, was doing so with the rec
OmmendatiOn that they be held for
a considerable period, asserting
that within another twelve months,
handsome profits would be realized
on the commitment. 1t has been,
strictly speaking. a rail market for
several days past and the absorp-
tiOn OF this class Of securities is
said to have been by some of the
. most important and influential in
terests in Wall Street, as well as
throughout the country. \ banker
who has just returned from q trip
covering several thousand miles,
during which time he visited praC-
tiCally all of the large important
industrial centers, stated that he
found a decidedly favorable feeling
among investors generally with re-
spect to the outlook for the future.
He stated that by reason of falling
of in business more money had
been made available for investment
and il was being employed at the
moment in the purchase of good
securities, principally railroad stocks.
which as is well recognized have
been thoroughly liquidated in re-
cent years because of the unsatis-
factory conditions obtaining in the
railroad world. The decision by the
Interstate Commerce Commission
permitting railroad companies to
advance rates for both freight and
passengers has resulted in placing
the carriers in a position where they
will be able to rehabilitate their
properties and place them on firm
er foundation than has been enjoyed
in many years There is said to
have been good buying of such is
sues as St. Paul preferred. Missouri
Pacific. Rock Island, New Haven,
etc, and while it is quite possible
that reaction may take place in
these issues during the next few
weeks, those who are purchasing
them are doing so with a view to
holding for a long pull.
Oils.
feeling with respect to oil stocks
which showed activity and strv myth
near the close of the week and it
was reported that the buying of
these issues had come from sources
usually we'll informed with respect
to market conditions. Transcon-
tInental Oil was d feature in Fri
days market. moving up about two
points on a large volume of trans
actions. and Sinclair Consolidated
Oil stocks also advanced substan-
TALLY. Mexican Petroleum and the
Pan American issues were in favor
and easily moved into new high
territory on the present bulge. 1t
was said that the oil stocks prob
ably had been more fully liquidated
than any other issues although
there were many who took the posi-
tiOn that a reaction might easily be
expected as soon as the French loan
Offering has been concluded.
New French Loan.
General gossip in Wall Street
after the close of business on Fri
day was that the market had been
made artificialIy strong by strong
interests as A sort of window dress
ing for the Ere enCh loan. the details
of which will be announced on
Tuesday next. This loan is expect
ed to be offered on an attractive
basis and 1t was said that money
was placed on the boards at as low
rate as 8 per cent on Friday with
a view to creating sentiment favor
able to the loan mentioned.
Whether or not this is true, the
fact remains that the market dis
-
fly and prices closed at about the
top of the session. In some spccu-
'lative quarters it was insisted that
the stock market as a whole will
undergo a sharp break within the
next couple Of weeks and that after
that period has passed. stocks may
be purchased in comparative safety
Those who are taking a long range
view, however. insisted that stocks
are a purchase at the moment ir-
respective of whether a prOtracted
upward movement Immediately
takes place, because the liquidation
which has been under way for more
than a year past has brought.
about a technical position which is
such as to indicate that better
things are in store for the list Is
a whole.
L. =. Steel.
United States Steel recently has
been purchased on all reactions bv
interests reported to represent the
strongest group in Wall Street Is
well as elsewhere throughout the
country. A few months ago it was
reported that the steel corporation
had under consideration plans call
ing for the distribution of a stock
dividend. The situation at that time
was not favorable for such a de-
velopment, but it was understood
that it is now being seriously con-
sfdered and that within a compare
tiyely short time active steps will
be taken to bring about such a re-
suit Therefore. it would appear
that sufficient explanation is in evil
-denCe for the rather general buying
Of Steel which has taken place in
recent weeks. 1t is well known that
the steel corporation has put mil
lions OF dollars back into the
property so that today its assets
more than represent the amount of
stocks outstanding.
: Motor stocks which had been
heavily OvcrsOld experienced
sharp recovery during the week al
some take the position that
before a general upwa--. movement
takes place in this group a further
temporary reaction will develop.