New-York tribune., 1920-05-06
Further Recovery
lin Stock Market;
Call Money at Z
Railroad Shares Act Well:
Oils Rise Vigorously OH
News of Well Compile
tions; Liberty 31as Steady

Rather striking recoveries occurred
in many OF the speculative favorites
yesterday in market which main
tanned surprising show of strength,
although news developments as a whole
were hardly of a character to warrant
important operations on the construc-
tive side. 1t was another session in
which the professionals, who have been
dominating the market for the last
two weeks. were largely responsible
Tor the course taken by prices. 1t
looked as ii this element, on finding in
the last day or two that stocks were
not coming out in such large volume as
the previous week and the market Oh
the whole was Offering better resist
ance to selling pressure, had, tenn
porarlly. at least, relinquished the
short side. Besides further cover
ing by nervous short interest and
renewal of operations on the long side
by professionals, some buying of
stocks was reported as coming in from
the West This was an interesting de-
velopments since that part of the coun-
try has lately been a rather heavy
seller of stocks.
The volume of trading yesterday was
again we'll under the total of recent
days, suggesting tendency on the
part OF the market following to go
SLOW IN making new commitments.
! Sentiment in the Street is greatly con-
fused over the immediate outlook for
the speculative market Although the
feeling is somewhat more cheerful as
result of the recovery this week, con-
1dence IN market values is still i'm
pared as result of the sudden out
burst of selling last week and the
week before, Disregarding day to day
news development, the Street, as
whole, sees little in the general situa-
ton over which to enthuse. Yet the
stock market must be in great deal
stronger position than it was a fort
night ago, just preceding the decline,
"hen prices were 10 to 25 points and
more above present levels, having been
put there largely as a result Of pool
manipulation. The best opinion now
seems to be that the market will likely
continue IN trading area" until such
tine as some OF the uncertainties be-
cloudlng the outlook disappear
Railroad stocks and the oils were
among the leaders yesterday. The
1urther recovery in the standard rails,
OF course, followed announcement of
preliminary steps on behalf of the car
rlers toward asking the Interstate Com
merce Commission for an increase in
freight rates to meet increased operat-
ing costs, and to adjust their incomes
TO the per cent basis provided in the
new TRANSFORMATION act. The roads are
seeking an increase in rates of ap-
proXlmately % per cent in the average.
Wall Street looks to see the transporta-
tlon companies get at least 20 per cent.
oll shares sprang into prominence
after news reached the Street that one
or the large companies operating Ia
Mexico had completed a new we'll flow
ing 10000 barrels. Stock of the At
lantic, Gulf e. West Indies Steamship
Company, whose Mexican subsidiary
was reported to have bought in the
we'll, jumped more than 10 points
completion of big we'll by the Texas
Company helped the stock of that con,
Germ. Among the other strong oil
shares were Mexican Petroleum and
Pan n-American Petroleum. Steel stocks
also Joined IN the upward movement,
with Steel common gaining nearly two
points net. Rumors of a merger of
certain of the independent steel com.
panies persist.
borrowers IN the call money market
found sufficient funds to cover their
needs at Z per cent throughout the
day. This was also the renewal rate s
In the investment market the an
nouncement of the sale of $4,000 900
Delaware & Hudson per cent ten
year bonds was an interesting de,
velopment.
The Liberty Loan 31as, which were
so weak the day before, displayed
better tone: The statement of Gov
ernor Harding of the Federal Reserve
Board, in which he said the Liberty
bonds could not be brougho back to
par by artificial methods, attracted at
tention. in view of the weakness of
these issues lately