Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-02-19
SPECULATE in RAIL STOCK
RAILROAD BILLS EARNINGS
FEATURE STlRS UP BUYING
vail Street stntisticiaus I'm Mud Coma
nctittou in Estimating Under
New Zone System.
UY uNOADAN MAIL

NEW YORK. Feb. Is.--Iieli.t That
nc railroad bill vii z" Through Con.
or cent and possibly 8 per cent. caused
urther covering of shor; contacts in
Vail, Street today and considerable
the rails mad. stiti further al
InCas on top Of those recorded yes
erday and practically all held that
rhis buying was also REFLECTED IN the
ndustrials. but there /, was eMiery
ho;t covering that was Responsible
4herehy frightening The short TO such
n extent that II had Il gross advance
&c liz points.
Mone%, c0nt!nued scarce but renewals
nd call loans wer" at 6 per c"ut.
orciah exchange was not mntcriaiIr
.Ncrent :;om yesterday.
Figure on itnn Emrninv,.
I mad fnn e, WI strGy h, 're in
cure out iirsL the earning l.oaEibi.i-
i:s OF the various railroads y Hood
chtilnates may hr expected within
Week o. 50. I, 10 a tremendous jon
ccapse the earnings are to pn allotted
~ Honcs--thc country IL 10 he divided
mo zones and the railroad property
ates. are To be liked in that zone so as
o prmlt The rate of earnings allowed
- the inw l. t,nn remains with Ia"
|nhividua roads within that zone 10
90 Ihich shall get THO bus.acra. Nj
urai.y those thar arc heavily un:r.tnI-
IIod snd ihat are nov duing their fui,
harT " business Will haze .ittl. 20
IAN The Creates possibilities :ur
improvements are IN III. smnlt roads
A ri nave been reenpitaiized.
Ihere - no question that the APP
r1iaA!S VIII be - surprise 10 the pub
H. J. Is known thai in Inaui cascs
re governments hSurcs are Gar in cx
Ssa 81 even ne greatest claims adj
"ncGi by h. company. Nobody knows
ow flcii tho railroads really are. or
curse the !4G Will no; MAKE differ
o nee Of r, ra'%s iHandntory hu, CON
oaus are 70 DC operated in auclt way
10 l':n!t their earnings 10 4 fair.
eturn or Inc c2pitai Invested. nGbody
an OBJECT 10 u proper r"adjustni"nr.
Final Fate Unsettled.
Whether they ultimately get into
lie hands rf. The government for rcr-
nanent ownership and control liz a
neshon yot 90 bo .,icnIdcH nnd FOR
l.. CoEsltcrtd invest mrnts Yet. hat that
|'pr'a!nly gro most allurinE speculative
purchases
When. onu spnaIls o sprcu:a,js. rnr.
bases in ihls market I; mus. D., dis
snctty understood tiint thc purc!iarcs
aust he made from a speculative point
n! VIsw. For lN-t:,nc. tile market ir
|.,rong a. the moment and probably
|yil! rontinrc advancing for the rust
!. thls week. hut iher. are, elements
II The situation that can "asiiy send
down % new low levels tho follow
ne week. Indeed some of the mos,
onse ;,mn onSTatorF Z, ,ge stree,
H.. 4 temporary rally
Th3t.al IN not rosy N the s,eci
uslness i proved b. Inc forl om!nr
Understood viii SHOW nothinr ny At ..Ii.
armed on IN. stock for the yi.ar 1919:
EARNINGS Of 'he arst Nine months
lut thr fourth quarter showed de-
Eicii nore Khan wip:ns ,cnt these earn
nGs.,
- Rail Merger Reported.
pae!st. Gssa. ∨hsraa md rs riiusson.
.t"e :'h a,,, n9s Tires g yanGiss 'hcse
RhssT o- s Ti als2 b SSslssss rf1
- s'Ere Sat!on Of nan railroad assets.
Z issexpscted that she. law VIII per
sddiSon TO III" 5,l-2 per Cent on ac-
coulo OF productive investments
by railroad companies. hut this viii
stunGp the R"nd!rg Coal ana Iron Com.
pnnj.wh'ch the l.cadIng Company Wi
,,ndoSsnsediX g@' rih "i ~ lpick!y, as
stoct3,olders particularly in Reading.
southern Pacific. These non rallroad
stoeia market dmpaiens.
In Grip OF Conditions.
leIdirg brokers are i!npraSslIc their
customers with the fact that the stool,
market IL in thc grip Of basic coud.-
;lonSt and even the most favorable
rai.r6ad settlement VIII not change
the Fundamentals which have 10 do
hsenS with foreign trade. wages ana
he volume or business credit avail
,alc..
TING one big ractor that sticks M
Ike 4 mountain peak out OF the situa-
lion is the impossib!!ity OF forcing
SPEEDY Liquidation OF commercial ac-
r0unS. That mountain must he re-
moved before the situation is safe for
II sides are covered with ava!anc!cs
hat The mere whisper might start in
motion and send crashing, down u-,,