Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-31
RAILS ARE STRONG,
WEAK ELSEWHERE
BY STUART p. WEST.

NEW YORK. August 81 Especially
The market today was another COM
pound, the same as it has been for
a week past. of strength and rising
prices in the railway list and uncer-
tainty with some individual weakness
among the industrials.
For the first hour or more the great
buoyancy in the rails held the rest of
the market up. but in the early after
noon heavy selling broke out again
in the motor and motor truck stocks,
and the weakness in these groups
caused other industrials to lose what
little gain they had made at the
start and work somewhat lower.
There was nothing new in the out
side situation to influence the move
ment of prices one way or the other.
The call money renewal was fixed at
per cent, where some had been pre-
dieting it was to be raised to 9.
1t was plain that there was not much
cite strike when the stocks of COM
panies whose earnings would be most
anected were among the strongest
things on the list
The continued slump in cotton was
an unsettling influence from one point
OF view. but from another and broader
viewpoint it simply meant that the
defiatfon which the textile industry,
hide and leather. silks, boots and
shoes sugar and to some extent grain
have all been experiencing and which
must come about in all lines where
undue imitation has occurred.
1t is all part of the readjustment
now going on which will end in put
ting business and credit on a stable
basis and prepare the way for a new
advance
Active Trading in Rails.
In times gone by it was quite the
usual thing for the rails to monopolize
the trading and for the industrials to
be side issue. But this. was back in
1909: a condition like this has scarcely
existed since. Now, however, the mar
ket is giving touch of the old times.
Today more than ever the railway
shares were the leaders and this
up while the industrials were uncer-
tain. but that they were more active
relatively than the industrials. One
rail after another was taken up with
special attention given to the low
priced issues. Some very large blocks
were taken in the curse of this ad-
vance. particularly when critical
1pints were reached
The trading. for instance, was very
heavy in Hook Island. going through
81: in New Haven. reaching IS, and in
Erie striking Is.
Clearing Situation.
In all these instances it looked as
II all offerings at the prices named
were being taken off the market with
the idea of clearing the way for a
further advance.
st. Louis Southwestern made new
high records. as did the ST. Louis and
San Francisco stocks. Missouri Pa
eific, Kansas City Southern, Denver
preferred and Western Pacific, all OF
which had previously done little or
nothing. commenced to get busy. A
lot of Denver preferred was taken by
a house, which is one of those used
by a prominent operator whose ac-
tivities are generally associated with
the short side. Sometimes the opera
tor in question. however, takes hold
Of just such a stock as Denver pre-
ferrede. because it is a cheap specula-
ton and can readily attract a follow
iEg.
wheeling and Lake Erie.
Recent buying in the Wheeling and
Lake Erie stocks, resulting in quite
a bit of activity in the usually dor
mant preferred. besides being part OF
the general forward swing in the
rails, has also been based upon their
own favorable prospects under the
new rates. In nearly all the territory
which the, Wheeling serves the 40 PEI
cent increase will apply. 1t is figured
out that this will allow the company
to earn the full dividend to which the
preferred stock Is entitled and bal
ance variously estimated at between
1 and 6 per cent on the common. II
anything like such results are
reached, of course, Wheeling preferred
around its present price at % is much
undervalued.