The Washington herald., 1920-02-18

STOCKS REVIVE
ON RAIL NEWS
Many Issues in Comeback
After Decided
Declines.
MONEY AT 6 PER CENT
American Wooden and Cru
chile Yield Several
Points.
MONEY AT E PER CENT

New York. Feb. 17.-Existence of
an important short interest in the
railroad list was disclosed this af-
ternoon when the rumor of some
good news on the rails soon to
come from Washington caused an
all around advance averaging about
. points in the standard issues.
The good news was believed to
be an agreement to let the roads
earn 6 per cent on investment. This
had been preceded by a covering
movement in the industrials. In the
early part of the day the entire
market was heavy. both industrials
and rails sinking to lower levels.
A few specialties. notably American
Wool. Endicott Johnson and Cru
chile Steel made absolutely new low
records. These recovered with the
others. The close was strong and
active with material net gains in
every department.
Money renewed at per cent and
loaned at 6. Time funds were quoted
at ~ per cent with but little
money offered. Brokers reported
their loans reduced an average of
30 per cent from the recent high
point.
American Wooden and Endicott
johnson were particularly picked
for attack because they are typical
of the class of stocks that will suf-
fer when the commercial clean-out
comes In no business has there
been such proflteering as in cloth
ing and leather. The manufactur-
ing companies in these lines have
shared in the profits to large extent
as will be proved when their annual
reports are made public showing
profits disgracefully large.
The attempt to start a raid on
General Motors stock by reports of
additional financing soon to become
Necessary was squelched by a
prompt denial from authoritative
sources.
Crucible was attacked early in
the day and yielded to the extent
Of 9Is points. but of this it had re-
covered nearly ; points before the
market closed. The stock has not
broken enough to be in line with
other issues of relatively the same
value That is why IL was attacked.
After the market closed II be
came Known that the advance n
railroad s.oCks was really based en-
progress made in Congress on tie
railroad bill end that earnings of
6 per cent would probably be per
mitted on the capital invested. r5e
Information lad reached Wall
Street, probably, through some legis-
latOr who was specializing. The
rally was aim, st sensational. when
one Considers the recent inactivity
Of raiiTCad stocks. Union Pacific
lose 6l-i points; Southern Pacific
SIS; Reading, 5; AtchisOn. 4; New
York Central. 3 3-S; ST. Paul, 41-2
and others in proportion to theil
activity. Such an upturn in rail-
road stocks has not been witnessed
in many months. and it went a long
way to restore the sinking spirits
Of professionals.
Some optimism in regard to the
railroads is due to the despairing
statements of Frank a. Vanderlip
who believes the rails will continue
under government control and man.
agement for the simple reason thai
u will be impossible for Congress
20 agree on a program to rehabili-
tate them.
There is no one who would moi
Be delighted to sell his stock to
the government at the appraised
value. Therefore the railroad stock:
nay become buoyant.