Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-23
SOFT,
RAILS MAKE GAINS
Some Profit Taking and Poor
Bank Statements Respon-
sibIe for Losses.
BI STUART p. WEST.


stocks moved with considerable nm
certainty in today's market. while
the railway list was uniformly strong.
over the industrial section the re-
membrance of recent MONDAYS with
thelr uninterrupted record of decline,
acted as deterrent and as an incen-
tive 10 professional selling.
Inese stocks had had at the close
OF jast week enough of a rebound to
CONSIDERABLY reduce the outstanding
snort interest and to leave the posi-
tion' which technically had been very
vulnerable.
Even on the assumption that last
weeks low prices measured the worst
in the shape of business recession and
on the assumption that representative
bankers are right when they say that
.nt Danger OF money crisis in the
autumn has passed the market was
entitled to moderate setback.
There is no idea, of course, that the
credit barriers will be let down vet
awhile; and while the current price
level has ceased to be the bearish
factor it was, it does stand in the
way of any sustained upward move
ment in speculative issues. The feel
ing is that this class of stocks should
be satisfied for the next few weeks
or month with narrow swings for
ward and backward-in other words,
what is known as a traders market.
Rail Conditions Dinerent.
The case is different with rail
shares. for these are more acceptable
collateral at the banks and a nader
ate buying movement even though it
were of speculative character. in
this department of the list, would
probably not be frowned upbn. There
are still large possibilities both in
the new railway act and in the rate
decision. which have not been re-
aected in railway stocks hitherto
lions that have prevailed in the gen
eral market.
But with the outside business out
look and credit outlook slowly on the
mend a modest campaign in railway
issues might be undertaken.
Phis thought was in the minds of
close observers today when they saw
the railway group steadily hardening
while the industrials were unsettled
and inclined for the most part to sag.
Southern Pacific.
There is now Just as much as there
has been at any time what might
be described a Southern Pacific cult.
This ia comprised of great number
of people who believe that some day
the possibilities of the Southern Pa
cific's oil properties. the title to which
is now assured. are bound to be ex-
plotted in the market. This may not
happen until the situation generally
becomes more propitious for specu-
lation than it is at present. But
when it does come the friends Of
Southern Pacific maintain that it will
be the most popular campaign with
the public that could Well be imagS
ined. These thoughts occur to many
observers every time Southern Pa
cific sticks it's head up at all. IT
advanced sharply this morning on
the report that the East Coast Oil
Company, Southern Pacific sub
sidiary, had brought in a new 10000
barrel we'll in the Panuco, Mexican,
field.
A Natural Reaction.
The decline in the industrial leaders
went about as far as the limits of a
natural reaction, but did not go any
further. The equipments dropped of
~ to 2 points under the lead of
Baldwin Locomotive and American
Car and Foundry. Steel common lost
~ and the Independent steel stocks
went down similarly. VaRadium Steel
was an exception. 1t. with Replogle
Steel, was very strong in the early
part of the day and offeHnd hetter
resistance than the othAAss Mesnhers
of the group to the seltR& PAeNU4Fe.
There are special cases lat wesk in
these two stocks which az not Amply
In the sugars, which broke so badly
a week ago. it was very noticeable
that Cuba Cane was the ONLY one
which went down to speak Of, and
thnt the others, especially Cuban
American and Punta AlegT held up
fairly well.
Copper stocks We're also rather con-
spicuously steady, apparently in SYM
pathy with the report that sellers OF
the copper metal are holding off for
higher prices.
Southern Pacific Leads.
Among the rails the leaders were
Southern Pacific, Union Pacific and
Reading among the dividend payers,
and the ST. Louis >and Southwestern
among the low-priced stocks.
Royal Dutch and Shell Transport
gained directly against the drift in
other industrials.