The New York herald., 1920-01-09
News and Gossip
of
Wall Street
STRENGTH OF a. n. SECURITIES.

Buying OF tobacco shares predomina ted
in A. r. Securities yesterday That issue
advanced Il. points and held almost all Of
the gain. 1t was recalled that the Srevi-
Gus day, when the bulls were busy in Re-
tail Stores and Tobacco Products. A. r.
Securities were neglected Yesterday Sc
curities had it's turn, while more or less
profit-taking took place in the other
shares However, United Retail Stores in
particular showed much firmness The
buying was regarded rs good. A. Y. Sc
curities is purchased with confidence be-
cause of the remarkable earnings Of
American Tobacco, of which 1t is the hold
ing company. Earnings OF American To-
bacco are understood to be exceeding all
past figures.
TRANsCONTINENr OILS BREAK.
Weakness in Transcontinental Oil, which
caused 1t to break to a new low in its
history, may be attributed to the fact that
the original syndicate which underworld
the stock, was dissolved on Wednesday
night 1t is surn.ised that some of the
underwriters had stock on their hands
which they were at liberty to liquidate
in view of the dissolution. of the syndicate
agreement. The public has been deeply
in Transcontinental Oil. LID
uidation has been persistent all the way
down from go. The issuing price was
high when the fact is considered that the
Transcontinental company is a new one,
Its properties are in the development
stage. No earnings have been published,
"a fact which initiates against the stock.
DEMAND FOR GAS BONDS.
1t is learned from authoritative sources
that filing of warrants for subscriptions
to the new issue of 900 five year
secured per cent convertible bonds of
the Consolidated Gas Company has been
phenomenally large, although the war
rants have been out only two days. Not
only are stockholders keen to obtain
bonds. but it is said that applications of
non stockholders for the surplus not taken
by share owners also are numerous. All
subscriptions must oe filed by January IT,
CRUCIBLE AND BALDWIN.
Crucible Steel and Baldwin Locomotive
were the subjects of much prophecy yes
terday. 1t was said that the shorts in
each issue were in a precarious position.
Baldwin was active and firTa but had no
sensational movement Crucible. however,
was quiet and sold off point. Sentiment
on steel stocks and on equipment shares
is bullish because OF the worldwide de-
mand for steel products and railroad
equipment. The large requirements for
cars and locomotives alone insure a heavy
production of steel. The whole steel trade
is held to be III an exceptionally strong
position. II is automatic that prosperity
in the steel industry is synonymous with
general prosperity. Some houses are ad-
visng purchases of sound steel and
equipment stocks on all dips, believing
that tho next important movement will
be led by this group. Strength in Baldwin
was largely due to reports that the divi-
dend on the common stock will be main
tanned on a 81 annual basis and that the
earnings of the corporation have been I'M
mense. The directors paid dividend of
49, 20 on the common stock on January J.
A similar dividend is expected on July |
next. The company has increased pro
duction to 81 per cent of capacity. Within
the last several weeks il has booked a
number of large orders, among them being
two important foreign sales. Baldwin Io-
comotive will be a company that VIII
profit greatly through tho extension OF
foreign credits. Many European countries
will buy equipments on a large scale when
credits are given them by this country.
BUYING or U. 8. STEEL.
Buying of United States Steel attracted
attention because of it's good character.
Steel will profit through the return OF
the railroads 90 private ownership and
control and also through tho extension of
foreign credits Large contracts, it is
understood, have been placed with the
Steel Corporation by foreign countries TO
be executed after credits have been
arranged. But until that is done the
condition OF foreign exchange
almost prohibits foreign buying. The
was operating so.6 per cent
capacity at the end Of 1919. Some of the
smaller companies are now operating
100 per cent capacity.