The Richmond Virginian. (Richmond, Va.) 1910-1920, 1920-04-27
Ri DECISION On
auLDIHe RAILROAD
EICITEs WALL STREET
By BRnADAN WALL

Hy HtkALAkkhES WAAAA%
Nav YORK. April ss.--The supreme
,,nrt decision ordering the Reading
- i1road to distribute Its holdings gave
Wxf Street an exciting afternoon
Iust before the decision was renoer-
"a the list turned heavy ailhonsn
II had been strong. and active most
- fhn morning. Reading which had
heen around 81, dropped to ~. From
nat f,rure Ii mounted rapidly after
announcement WAS made that the oe-
eixion was being read. Before the
4 erect knew what had been decaoeo'
m was selling at 81.
Yhen came a brief period OF heeita-
zion as the gambling element TOOK
profits and from SO 1t moved across
III. closing at the TOP. Other ROADS
were attracted upward by the move
r,en, New York Central and bai-
tsnaure ana Ohio which are large
y shareholders in the Reading com
,any advanced sharply, the latter
taining ave points and the former
nearly four. Southern Pacific, Texas
and PACING, Pittsourg and West VIZ
gfula we're other rails TO move up
& Briskly.
This movement In the rails was
reflected in the industrials at the END
Nh the day although they hung back
high for the present movement with
! gross gal OF nearly 30 points
woolen moved up IL points following
confidential circulation OF the an
uual report which will be made pup
s lie at noon tomorrow.
All wall Street has the figures but
the newspapers are bound not to pub
lisb them until they are officially re-
leased. The only problem In WOODEN
ii whether the extra dividend will
be in cash or stock. II should be a
handsome one.
Owing to the splendid bank. po~
sitton disclosed on Saturday for the
New York district, all stocks were
higher at the opening. United States
Steel, General Motors, the Ryan is
sues and Reading were well bought
or the Ryan stocks. Consolidated.
Textile was most prominent ard II
made a. new high record by crossing
IS. Reading was under influence OF
the streets expectation of decis,
ion. IAackawanua Steel was SO well
bought that the street was busy again
with the rumor of new steel corpo-
ration being organized
For the buying of United States
Steel there was the talk Of large
stock dividend to be declared to-
morrow afternoon. II this steel divt-
uEud Ii nGt declared w ali SLIttL WA
be bitterly disappointed.
Speculative Wall street believes
Reading stock will have n material
further advance as dissolution pro
ceeds. For many years the favorite
arguments of bull pools in Reading
has been that the company had vast
concealed assets These assets were
concealed only In the sense that they
were not scheduled in the records
nf L. Nr.rr ct
prices. This left pool managers free
TO exercise their own imaginations
In fixing values.
There Is no question that these val
ues are very large and now every
body is figuring them again.
Bankers say the stock Is good
investment isstfe at this ieYel. for
they believe that the equities to be
distributed will justify all that has
4 ever been done with IT IN the mar
Set
Now that the Reading prize Is
\ NNout 10 be distributed Wall street
d Beginning to pay attention to
other railroad stocks. Even before
the Reading decision was handed
down there was good buying here
and there. The favorites were Tex
as and Pacific, Pittsburg and West
Virginia, Pere Marquette and Union
Pacific. II is felt that the railroad |
stocks have not even begun to dis |
count the new law In their favor re- |
.entiy passed by congress.
They are winning their strike with I
he men and a period of compare
lively profitable operation may be ex-
pected. The big thing in favor of the
railroads is the overwhelming senu-
nent of the public against strikers.
The people are beginning to realize
hat without transportation no indus
sry can thrive. The trains must move
sven though freight rates move also.
1t was the prospect OF getting the
freight trains in motion that helped
he industrials today fully as much
IS aid the good bank position.
TIE. advance OF General Motors was
very impressive, coming RS ii did on
sop of sharp advance Saturday. At
the high ffgure today 1t showed an i'm
nrovement OF as points over the low
figure OF last week There Is talk
again of Motors taking In another I'M
portant company.
Improvement of Mexican Petroleum /
and Pan-American were the result of /
. better understanding OF the Mexican
situation. The more warships go TO |
Mexico the higher these stocks should |
slse.
The crop situation IS beginning To |
attract more attention in the Street |
II Is not good for any particular |
crop thus far. The situation in re-
ard TO cotton planting caused an ad- |
vance Of more than 100 points in the j
market for options today.
Sterling exchange and Canadian
exchange turned very heavy. the lat |
Ter particularly 80.
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