New-York tribune., 1920-09-30
Industrial Stocks
Weaker, but Rails
Show Upward Trend
Selling of Former Again
Marks Trading as Defla.
tion Reacts ON Market;
Much Interest i'm Rails

Again the stock market revealed
two Numerically opposed tendencies
yesterday. Characterization of the
days fluctuations as upward or down
ward would depend entirely on whether
ones attention was focused on rail-
road or industrial stocks. The former
persisted in their movement toward
higher levels, whereas the latter suf-
fered severely once more from the com
bined attack Of ordinary and short
selling.
At the posts on the floor Of the Ex-
change where rails are traded in q
distinctly bullish atmosphere was per-
vasive. score Of the most active se
| curities in this group touched the peak
thus far this year as result Of con-
fdent buying, particularly among the
low prived issues, and many gains
varying from l to 2h points were reg
istered Speculative operators have
on the theory that the common carriers
would wax robust under the Esch- Cum
Minis act and the increased rate scale.
Nothing but opinion had been guiding
their campaign until the last couple of
days, when the Association of Railway
Executives made public figures meas
uring heightening Of efficiency of the
railroads.
Following the lead Of the railroads,
the principal public utility stocks
tended upward yesterday. The Phila
delphia Company. the Interborough and
the Brooklyn Rapid Transit, with the
| ha NJ
which in most instances was based on no
tangible development in the situation.
Many folks In speculative quarters are
these days talking about the need Of
adjusting various securities to those
fundamental changes which are taking
place in industry The argument Of
those who expect the utilities to do bet
ter Is that in the days of rising COM
! modify prices the public service cor
porations suffered because their income
was flxed and infexible. Now, If
toward lower levels, the nickel will be-
come more valuable and the utilities
will be correspondingly better off, It
Is suggested. The logic seems sound
enough as far as it goes, but unques-
tionably the pinching of many Of the
utilities financially in recent years has
impaired their physical makeup and
deferred much necessary work, which
will be charge on future earnings.
| However, theoretically at least, deAa-
tion is bull argument on the secu-
rites Of these corporations.
In the face Of the rise Of the fore
going, the weakness of the industrials
was conspicuous. Belief that down.
ward readjustment is coming in the
prices Of Independent steel corpora
tions caused heavy selling of aecuri. .
ties of this group, which, together
with the oils, were the chief targets
of the bears. The steel trade week
lies reported a further shrinkage Of
iron and steel buying. The vulner-
ability Of; the petroleum stocks came
partly from the technical fact that
they had been rising, while other in
dustrial stocks were being readjusted
downward, and this tendency toward
weakness was facilitated by repeated
predictions that price cutting would
ultimately be reflected in the cost of
crude oil. The motors continued to
ease Off on announcements of further
price reductions. Maxwell stocks were
markedly weak, presumably rejecting
an unfavorable Interpretation Of the
position of old stockholders under the
new reorganization plan. The equip
ment stocks held fairly steady. The
weak stocks re covered part Of their
losses toward the close.
In the cotton market irregulaYity
made the quotations Of the day con-
fusing. Although later months moved
higher, October closed lower. Wheat
was firmer, gaining 1M TO 8 cents,
The supplies at the domestic milling
points are considered low, and fear Of
a shortage impaired frmness.