New-York tribune., 1920-10-01
Industrial Stocks
Continue Weak as
Rails Climb Again
Cleavage Between the Two
Major Groups Widening;
Money Rises to 9 u. Co.;
New Highs for Rails

The railroad and industrial stocks
continued yesterday to move with ap-
proximately equal speed, but in oppo-
site directions. The unique character
istic of the present phase of the mar
ket is the fast widening cleavage be-
tween the two major groups Of securi-
ties.
In the first four DAYS of this week
| iifty-four stocks of industrial corpora
tions, responding to indications of re-
cessions in trade. have touched the
lowest levels attained thus far in 1920.
simultaneously, the stocks of fly rail
roads were quoted at the highest prices
at which these securities have changed
hands this year.
The comeback of the rails is illus
trated by another set of data For q
decade the public interest in specula-
tion and investment in the securities
of railroads dwindled to such an extent
that dulness in this department be-
came proverbial. Even last year, dur
rng the excited succession of million
share days, when industrial securities
were whirled to unprecedented heights
on the theory that temporary abnormal
corporate earnings would persist for
! ever, the rails were neglected. Yester-
day more than one-third of the sales on
the New York Stock Exchange involved
the transfer of railroad securities and
| there is nothing to indicate that the
new numerical Importance of the rails
in the days transactions has reached
the crest. Speculation in the rails is
being encouraged by continued state
ments from railroad officials that eff
cheney is being heightened. The higher
grade, dividend-paying rails were espe-
cially active and apparently eagerly
bought.
Among the industrials there was
much unevenness. With few excep-
tions this broad group was sloppy,
tending downward. The conspicuous
weaknesses, however, were not general,
and the way traders seemed to be pierc-
! ing knives into vulnerable speculative
positions indicated that the fluctuations
were in a large measure rejecting the
judgment of professional operators.
Exaggerated reports about the closing
/ down of units of the WHY'S Overland
Company, which were later corrected
by an official announcement, precipi
tated selling of the motor stocks, and
these securities were notably weak.
General Motors, the leader of the
group, tumbled two points below the
| previous low maj n IO1 C!lC SSdl. HN
oil stocks, which have lately been
showing a tendency to adjust their
market position to that of the other
industrials. were easy, and other spe
cial groups, such as the sugar stocks
and the copper stocks, were heavy. The
other industrials, though easier in va
rying degrees, held up better, and
brokers reported that the new selling
prices were again encouraging bargain
| hunters.
Call loans renewed at per cent
yesterday, but in the afternoon the rate
climbed as high at 9 per cent. The
rise was not unexpected, in view Of the
banking need to take care Of October
disbursements and of government
Withdrawals. Normally, bankers look
for the peak Of the credit strain in Oc
tober and in December
In the commodity markets quota
tions slumped, The price for the new
corn crop was the lowest yet quoted.