Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-10-06
SALE OF RAILROAD ISSUES
FEATURES STOCK MARKET
Persons Who Purchased Shnres at
Bargain Prices Thought Time
Ripe for Selling.
EXPECTED TO JUMP HIGHER
Industrial Group Firm, and Here
and There We're Distinct Signs Of
Strcngtll-Urgcnt Buying Con-
tinucs I'm Mexican Petroleum.
ny Dl,OADAN WALL.

NEW YORK. Oct. 5.-Stocks dis
played strong undertone during
inc greater part OF todays session.
Dut protit-takiny appeared IN the rate
dealings In the railroad shares. This
selling resulted in reactions OF about
one point from the best In the most
active Issues. Many persons who pur-
chased railroad issues at bargain
inc Dropltious for taking profits and
thls accounted for the offerings.
Most persons, however. believe that
the shares OF the transportation COM
panies are destined 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 preference for industrials. 4
moderate setback in the quoted mar
kct values for the railroads is,
therefore, expected to bring In n
fresh crop OF buyers.
Bankers 10 Revive Credit,
The chief reason for the cxpecta-
tinn OF strength in the rails In that
important banking interests are de-
tnrinined to revive the credit Of the
transportation companies In order to
accomplish the financing which must
F" De done to Improve the physical con-
ditions of the transportation conf
panies and enlarge their facilities to
i point where they can adequately
The industrial group Was firm and
mere and there were distinct signs
OF strength. The shrinkage which
mas occurred In the quoted prices OF
manufacturing company shares is be-
tievcd To have discounted the back
wardneas OF trade.
Urgent buying continued In Mcxi-
can Petroleum which at one time dur
more THAI points The pcrsisteut
strength OF this issue is a source OF
much discomfort to the shorts who
cannot bring themselves into con-
bright outlook for the company un-
der the changed conditions In McxI-
20 General Motors continued the
leads OF the motor issues. 4 man
. VINO is director or AT least two
prominent motor companies states
that he believes these companies
In 1890
Good buying of Southern Pacific
stock has not had it's share OF tho
advance In the railroad group. Com
Hcrvative spectators were buying tho
o"n'ettib!e per cent bonds which
sell about . points above the stock
~, are convertible into tho shares
. par. Improvement In Mexican con
hitions and the company's owner
snip OF valuable oil lands are also
points IN favor Of the expectation OF
hlsher freight rates.
siny Pay Lnrg~r Dividends.
enthusiasm with regard to the
idhroad group has developed to IN.
point where much discussions liz
heard with regard to the possibilities
~ larger dividends by those corr.
iah!cs which during the last i've
. y"ars were forced TO reduce or
abolish distributions to stockholders.
BHHhcrs consider that larger pay-
in"ntS To shareholders would do much
io improve the credit OF the trans
purtatlon companies and expedite the
nHahc!nE That, mast b. done In the
iiturc TO catch up with the growth OF
tn" nation
Improvement I'm the Inquiry FOR
tobacco stocks found reflection in
higher prices for those Isst,s
American Tobacco and Lorillard M
one time showed gains OF more than
5 points.
Missouri, Kansas and Tcxas shares
were under pressure throughout the
session. the common declining more
IMAM one point and the preferred
slightly more than three
sears Rocbuck stock did better mt :
withdrawing announcement that the
company has about concluded ncpo-
uni!ons for the sale OF $50, 900. 900 or
notes 10 syndicate OF bankers which
y expected to offer the securities TO
~" public at prices yielding around
per cent on the investment.