The Washington herald., 1920-10-06
PROFIT TAKING
FEATURESDAY
Strong Undertone Displayed
During Greater Part
Of Session.
RAILS FREELY OFFERED
Selling Results in One Point
Reactions in Most Act
{ i've Issues.
RAILS FREELY OFFERED

New York. Oct. Stocks dis
played a strong undertone during
the greater part of today's session
but profit taking appeared in the
late dealings in the railroad shares.
This selling resulted in reactions of
about 1 point from the best in the
most active issues. Many persons
who purchased railroad issues at
bargain counter prices today con-
sidered the time propitious for TAX
ing profits and this accounted for
the Offerings. Most persons. how
ever, believe that the shares of the
transportation companies are des-
tined to sell higher not only because
they are worth more under the new
conditions, but also because they
have again come into vogue with
the speculative public who. for the
last few years have shown a pref
erenCe for industriaIs. y moderate
setback in the quoted market values
for the railroads is therefore ex-
pected to bring in a fresh crop of
buyers.
The chief reason for the expecta-
ton Of strength in the rails is that
important banking interests are de-
termined to revive the credit Of the
transportation companies in order
to accomplish the financing which
must be done to improve the physi-
cal conditions of the TRANSFORMATION
companies and enlarge their faCiii-
ties to a point where they can ade-
quEtely handle the business of the
country.
Industrials.
The Industrial group vas firm and
here and there were GistinC. signs
of strength. The shrinkage which
has occurred in the quoted prices
OF manufacturing company shares
is believed to have discounted the
baCkwaTGness of trade.
Urgent buying continued in Mexi-
can Petroleum, which at one time
during the session showed a gain
of more than points. The per
sistept strength of this issue is a
source of much discomfort to the
shorts who cannot bring themselves
into a condition of mini to appre-
Ciate the bright outlook for the
company under the changed cOndi-
tiORs in Mexico.
General Motors.
General Motors continued the
who is a director of at least two
prominent motor companies, states
that he believes IN sSe companies
will ship more cars next year than
in 1920.
Southern Pacihc.
Good buying Of Southern Pacific
was reported on the theory that
the stock has not had its share
n IN ha a
group. Conservative spectators
were buying the convertible per
cent bonds which sell about points
above the stock. but are converti-
BILE into the shares at par I'm
provement in Mexican conditions
and the ccmpany's ownership of val
liable oil lands are also points in
favor Of the expectation of larger
earnings, irrespective of freight
rates.
Rails.
Enthusiasm with regard to the
railroad group has developed to the
point where much discussion is
heard with regard to the pOssibili-
ties Of larger dividends by those
companies which during the last
I'VE years were forced to reduce
~ dDi'AArlA us u AbAllDllS 10 SUM
holders. Bankers consider that laTg-
ar payments to shareholders would
DO much to improve the credit OF
the transportation companies and
expedite the financing that must
be done in the future to catch up
with the growth Of the nation.
Improvement in the inquiry for
tobacco stocks found reflection in
higher prices for these issues. Amer
lean Tobacco and LOrillard at one
time showed gains Of more than
) points.
Missouri. Kansas and Texas shares
were under pressure throughout the
session. the common declining more
than l point. and the preferred
slightly more than 3.
Sears Ruebuck stock did better,
Notwithstanding announcement that
the company has about concluded
negotiations for the sale of $50
OOO.O 900 of notes to a syndicate of
bankers. which is expected to offer
the securities to the public at prices
yielding around per cent on the
investment.