New-York tribune., 1920-10-07
Industrial Stocks
Resist Pressure:
Rails Irregular
Better Glass in This Group
Move Higher, but the
Weaker Roads Decline:
Strength in Covering

Lacking the stimulus of an important
new development in tho world outside,
the stock market yesterday Welded al
most exclusively to internal influences.
The vicisstudes of the days fuctua-
tions were confusing Movements even
among closely related groups Of secu-
rites were contradictory. and the ir-
regularity that prevailed vitated the
days transactions as useful indications
of the future trend in industry.
What strength was revealed was es-
sentially of defensive character. Floor
security prices, and, although some of
them moved lower, The industrial stocks
held up against the attacks fairly well.
The impulse TO rise, however, which re-
fected insistent short covering for sew
cral days, yesterday plainly became
weaker.
In the railroad department there was
more clearly defined cieaverage be-
tween the securities Of high grade roads
end those of the carriers Of less favor
able standing, the former rising and the
lstter declining. The collapse of the
common stock Of the Texas G. Pacific
Company was the immediate cause of
unsettlement which radiated in various
directions. The stock, which on Tues
cxy closed at 37A, yesterday tumbled
to 23 Il, and then recovered to 25h.
Many unfavorablc rumors accompanied
the dramatic shrinkage of the market
va uc Of the security, but all of them
were subsequently denied by an officer
of the road.
The action Of the stock indicated that
tlo hoe tad
speculative position, and consequently
raided it. Short selling depressed the
issue to a level where innumeraole stop
orders were releN7 d, and the gains Of
many weeks were quickly etfaced in
| few hours. The previous low for the
year was 25, and the high is AZ Pro-
fessional operators for the decline have
been in quest of vulnerable places in
the railroad list because of its steady
rise since mid summer.
Simultaneous with the decline in
Texas & Pacific, Reading moved con-
spicuously in the opposite direction
and rose above 100 for the first time in
three years. The swings of the stock
thus far this year have been exceed
ingly wide, and the latest upturn was
based on the suggestion that further
developments in connection with the
segregation of the coal property was
imminent. Despite the action or kead-
ing. commentators on the market in
commission houses became more dl-
vided in their opinions as to the i'm
mediate future of the rails and not
few who had been recommending them
enthusiastically ever since the rate in
crease advised profit taking and some
became definitely bearish for the short
pull. AS for industrials, the recent
temporary strength has originated
from short covering mainly, and the
outlook for the next few days IS re-
garded as uncertain.
In the commodity markets the work
ine of familiar economic forces caused
recoveries from the low levels attained
earlier in the week. Holders of cot
ton. grain and corn became less in
clined to raise their products at pre-
vailing quotations and shorts had to
bid them up some in order to cover
their commitments. The speculative
sellers became somewhat scared over
the recommendations of Governor Al
len, Of Kansas, in respect to Investigate
inc bear pressure at the Chicago Board
Of Trade and also regarding the limita-
ton of imports of wheat from Canada.
In the three principal groups of specu,
lative commodities, quotations showed
Gains for the daV,