Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-04
RAILWAY SHARES
LEADERS IN RALLY
Operators Views Are al
MISREPRESENTATION
Considered.
BY STUART p. WEST.

NEW YORK, August 1.-THE mar
ket had established the fact yesterday
that the extreme low prices reached
was sufficiently attractive to bring in
buying of a very substantial klno.
the sort of buying which appears
only in times of great unSettiement-
A buying power was developed that
, was sufficient to absorb both liQuida-
ton and the offerings for short &C
count and the brisk rally in the
closing hour showed this very plain
ly. The rally-for this was the only
way il was observation-disclosures
through the first half of today's ses-
sion.
Railway shares. the great strength
in which had turned the market yes
terday, were prominent again. with
numerous advances of point or so
both among the standard dividend
payers and the low-priced speculative
issues.
One theory. indeed. which found
considerable favor was that the smash
in the industrial section had been en-
couraged in order to facilitate accu-
mutation of the rails by large inter-
ests which had not figured upon such
liberal treatment from the Interstate
Commerce Commission and had not
accordingly laid in the supply of rail
shares that they would have liked to
have had.
s<CaOSsS'
However this may have been, rail-
way stocks were in active demand
again. with special attention given to
the stocks of eastern roads like New
Haven. Pennsylvania, New York Cen
trail and Norfolk and Western, be-
cause these are among the recipients
of the maximum 40 per cent increase
| in rates.
Union Pacific. Southern Pacific and
| st. Paul preferred were, however. al
most equally prominent. and there
was Sharp run-up in Canadian Pa
cific. anticipating the same favorable
action by the Canadian authorities to
the appeal for higher rates entered by
| the railroads of Canada.
inside Influences Effective.
That the market was more interest
was made very clear.
1t went up during the morning in
face of another break in sterling en-.
change quite violent as that OF
checked until rates had got down an
other ~ cents in the pound to 3.o6
making decline for two days of
fully Is cents in the pound.
Again there was disposition to
connect the sterling collapse with the
Polish news. but il was pointed out
against this that the declines in the
continental exchanges which should
be equally sensitive with London
drafts to political uneasiness. were
off comparatively little. while repre-
sentative foreign government bonds,
which would certainly reflect war
scare il there LAS serious fear of one.
were barely changed at all. The
United Kingdom bonds. for example.
were of a slight fraction. while the
City OF Paris bonds were up bit
Opinion Is Divided.
mixed in their opinions on the inn
mediate course OF the stock market
today. Strange as it may seem. with
the preponderance of bearish feeling.
there was to be found here and there
a trader with bullish sentiments. AS
the public is not in the market, the
traders with bearish proclivities are
about sure to be in the majority. and
such is the case now. However. the
temporarily oversold condition snd
then there is technical rally. 1t was
felt in certain quarters that this was
what occurred yesterday and this
morning, but in other quarters it was
the belief that the shorts had no
run to cover, but were in such
frame of mind that they would put
out more stocks on the rally. These
latter interests were also of tho
opinion that the buying which had
appeaFGu III the rains Was WHAT fniSh'
be termed good" and that it was
for the account of big interests and
the public.
The Hill Twins.
The sale of several large blocks OF
Great Northern preferred and Northerr
Pacific in the late trading yesterday is
believed to have cleared up the foreign
liquidation in these stocks, which has
been hanging over the market for some
time. The sales were what are termed
cross sales. That is. they were made
by brokers acting for the same inter-
ests and were believed to have been for
the account of the British government,
the proceeds TO be used in the paying off
of the British half OF the Anglo French
loan at its maturity in few weeks
II was said by those on the floor o.
the stock exchange that broker walked
into the Great Northern preferred
crowd and offered 5000 shares for salr
at - and that all in the same breath
he reported it sold. This attracted more
brokers TO this particular post. but none
of the others were able to get any of tht
stock sold later. it all going to one