The Washington herald., 1920-09-16
WILD RUMOR
CHECKS MARKET
Report That D. & R. G.
Property Would Be Sold
Stirs Wall Street.
SELLING ORGY FOLLOWS
Oil Stocks Again Strong
Rails Heavy-Cotton Men
Call on Wilson,
SELLING ORGY FOLLOWS

New York, Sept. 15.-A bad break
in Denver and Rio Grande common
and preferred stocks checked the
markets buoyancy today but in
spite of that there was marked i'm
prOyement throughout the list. y
few stocks remained heavy, notably
the steels.
Time money made its appearance
in considerable quantity at s per
cent and sterling had a sharp re-.
Covery. The federal reserve board
refused, after a hearing at Wash
ingtOn. to grant further relief to
the cOtton-grOwer Call money re-
newed at and loaned as low as 6,
The particular strength of the
day was in oil stocks under leader
ship of Mexican Petroleum.
Irregularity that developed in the
afternoon was due very largely to
the weak following that has been
attracted to many of the standard
issues This is particularly true Of
such shares as Mexican Petroleum
which every tipster in Wall Street
is now pushing as the one best is
sue for quick results. The swings
in the big oil stocks are under con-
troll of really important people and
It seems that these men get a good
deal Of amusement occasionally by
suddenly dropping prices so as to
wipe out the little fellows who are
now clamoring TO get into the band
wagon.
Sinclair Gets New Well.
Sinclair's new well announced to-
day starts with a flow of 10000
barrels on thu same tract on which
a 10000 barrel well was brought
in a few days ago. InvlncibIe is
hopeful of having a very favorable
report to make soon on production.
Middle States Oil shows signs or
having been absorbed by strong in
teTests in the recent break. for it
advanced about two points today
and held practically all of the gain.
Denver and Rio Grande.
Denver and Rio Grande preferred
and common broke wide open on
the premature report that the prop
erty would be sold by the court to
satisfy a judgment of some S36,-
100000 on account of tS~ Western
Pacific deal In the afternoon this
report was corrected to read thai
some fOrmalities will nave to be
gone through with before the sale
The stock recovered slightly.
Wall Street was somewhat sur
>prised to be able to borrow time
money at 8 per cent. This is max
ing its appearance in larger anc
larger volumes because bankers say
they can look forward a couple of
months and see easy money. They
think that now is the time to place
time funds because with the con-
slant collapse of ore commercial
enterprise after another they ex-
Dect money 20 go begging very
shortly
The leading authority on steel
confirmed today reports of slack
business.
Cotton Men Seek Financing.
That the Federal Reserve Board
has quit playing favorites was
proved today when a delegation OF
cotton men headed by John Wanna
maker applied for special advances
for the cotton industry and met a
stern refusal. Governor Harding
told the cotton men to quit asking
special favOrs and to get down to
practical business in the handling
of the cotton crop for which he
told them there would be ample
demand later in the season.
The cotton men thereupOn did a
very interesting thing. They went
Immediately to the White House
and filed a protest with the Presi-
dent of the United States. BY that
act they made the financing of the
cotton crop a political campaign
issue.
The grain industry, the automo-
bile industry, the steel industry.
the railroad industry and a score
of other equally fundamental in
dustries await the Presidents De
cision on cotton.