The Washington herald., 1920-09-02
RAILS AGAIN
LEADTHELIST
Market Closes Strong With
Railroad Stocks Show
ing the Way.
CALL MONEY LOWER
Steels Display Strength in
Afternoon - Tobacco
Stocks Also Strong.

New York, Sept. l. Railroad
stocks were the feature of the mar
ket in Wall Street again today.
Professionals were buying them
all day and part Of the day the same
people were selling industrials. But
the strength of industrials in the
afternoon caused considerable re-
purchasing Of this class of stock
also. The result was that the whole
market closed strong, although the
rails showed the most gains. OF
the rails. Northern Pacific, Great
Northern and Erie attracted most
attention. Money loaned at per
cent.
Cotton Estimate.
The cotton report of the govern
ment showed condition of 60
compared with a lO-year average
Of $50 on August %. This means
a crop Of slightly under 100000
bales and a surplus of the staple.
Before the report was issued,
cotton had a bad break but the re-
port showed less of a crop than
the street had expected and for
that reason there was a quick ad-
vance Of 100 points. The advance
was ule 10 d SNORT tON Ntl llAB VI
short contracts, but the fact that
the supply Of cotton will be in eX-
cess of the probable demand at
current prices caused heavy selling
which broke the list from $50 TO
200 points in the last hour. The
close was from % to 1913 points
net lower.
This selling of cotton is based
largely on the theory that banks
will hesitate to lend money on it
at current prices.
Some optimism was injected into
the textile world by announcement
that the American Wooden Com
pany would resume operation of
its mills.
StceIs Also Strong.
steel stocks turned strong in the
afternoon when trade authorities
reported that restrictions regarding
the use of cars would be lifted
soon. thus furnishing more rolling
stock for the delivery of steel that
has piled up at factories awaiting
delivery. I. ). Steel moved up
sharply on this report.
All the tobacco stocks were
strong and even American Sumatra
recovered quickly from the break
of two points resulting from the
tornado and haiIstorm that visited
the Connecticut Valley where it has
large plantations.
Some time ago it was stated
here that the LackawanHa Rail
road would soon announce a
distribution of coal company
stock to its shareholders, thus
COmplyin- with the decision OF
the supreme Court handed down in
the Reading case. The report was
in circulation again today. Jersey
Central is expected to announce a
distribution. most Of which will go
into the treasury Of the Reading
company, which is the leading
stOCkhOIder. Then the big distribu-
tion OF Reading assets will be made
as ordered by the Supreme Court.
Wall Street gUeSses that Reading
may sell al anything from 500 to
$3.50 a share on This.
The Sinclair Oil Company got an
other 10000 barrel well N Mexico
today through its affiliated COM
pany. the Mexican SeaboaTd Oil
Company 1t is announced that the
Mexican Petroleum Company will
buy the oil.
There has been unusually good
buying recently of Pittsburgh and
West Virginia stock. The compan,
is one Of those that would fit in ad-
mITaUIy with "a larger system.
The Gold Situation.
Gold in very large quantities must
come soon from France and Eng
land in settlement of the Anglo
French bonds. Official announce
mrnt has been made oC the French
shipments that are planned Today
il was reported that considerable
gold would come here from Canada.
1t will be remembered that several
months ago great shipments of gold
were mado to Canada presumably
for New York. but they never ar
rived here. This raised a doubt as to
whether the shipments were ever
made. but the writer OF this column
was Informed at the time and pub
Hshed the statement that the gold
actually did arrive AID was placed
in storage at ottawa. 10 be subse-
uuentIy shipped to New York. The
reason it was not sent here at the
tim was that the British govern
men was buying AngIO-FrenCh
bonds in the open market. 1t is