Evening star., 1920-06-18
SHORT Covering
AIDS THE MARKET
Gains After Dull and Lower
0pening-UsuaI Northern
Pacific Dividend.
BY STUART p. WEST.

Pacific Dividend.
BY STUART p. WEST.
NEW YORK, June 1s.-Despite the
continued dullness which characterized
most of today's stock exchange ses-
sion. it was quite easy to detect a
quiet growth of confidence first in
the soundness of the markets posi-
ton at present and. second, in Its
tendency when the present dull spell
Is over. All parts of the list were
stronger. with the exception of sor 9
members of the motor group, which
were still under pressure.
While the declaration Of the regu-
lar dividend on Northern Pacific had
been fully expected. the announce
ment, nevertheless, had a reassuring
effect upon other of the oldline divi-
dend-paying rails. The street liked
Presidents Elliot's statement, given
the outlook for business in Northern
Pacific's territory was much better
than last year, and that. with rates
which would allow return of per
cent on property value. Northern Pa
citic would have no difficulty in earn
guarantee, which. in turn. would be
sufficient to maintain the I per cent
dividend rate.
slump in RepIOgle.
AT the outset the market was some
what unsettled by a sharp break
in Replogle Steel. This had the effect
which had probably been intended. to
bring hurried unloading of stocks like
Vanadium, Bethlehem B and Republic
which would be apt to be sensitive
to an incident of this kind in
Replogle.
But this little furry was Of brief
duration.
1t was soon discovered that in the
list. as whole, no stocks were
coming out and as the day went on
this situation began to get on the
short side.
The buying on which stocks ad-
vanced at midday and in the early
afternoon came to a large extent from
bear sources. One house in particular
which has been identified with the
recent campaign on the short slde
was reported as buying all around the
room. But it was altogether covering
which was responsible for the display
of strength. Some fresh buying also
came into stocks like Baldwin, Amer
lean Locomotive. Sloss Sheffield, Corn
Products and Industrial Alcohol. whlch
are favored for special reasons.
Helps Liberty Bonds.
Interest in today's bond market was
chiefly confined to the various gov
ernment issues Liberty bonds having
adjusted themselves to the higher IN
terest fixed by the latest issues OF
Treasury certificates, are again point
ed upward.
They were helped by the prompt
subscription to the new certificates
which showed an entire willingness
on the part of investment capital to
take hold of government securities on
a So to per cent basis. AS the lib
erty bond market has been selling on
this basis, the favorable reception
given to the Treasury issues naturally
tended to strengthen confidence In the
stability Of this level. The second.
third and fourth loans were all up
from 25 to 40 cents.
There was heavy trading again In
the United Kingdoms. especially the
1925. Now that arrangements have
all been made to pay off the British
part of the Anglo-F French bonds
when they mature on October Is next.
the disposition is to begin to dis
count the similar retirement of that
which falls due next year. These
bonds sold today in large volume at
81 and above.
Among the corporation bonds the
equipment trusts were bit stronger.
particularly the Pennsylvania and the
Louisville and Nashville Is. Northern
Pacific appeared to be helped by the
declaration of the regular dividend on
the stock. The Northern Pacific prior
lien 3s while they were not up over
the prices Of the last week, represent
ed, where they were selling at % r,
gain of 2la points from the low OF a
month ago.
ReplogIe and vnnndium.
The weakness in Replogle Steel was
attributed directly to the pool which
is operating Vanadium Replogle and
Vanadium have always moved to-
gether, due to the fact that the same
men are interested in both companies
This showed today, when Replogle
was weak from the opening and rap
idly sold down to around so. This
weakness helped the Vanadium pool
to the extent that it was enabled by
this weakness to pick up some Vana-
dunn at prices where 1t could not
have been got last night. The situa-
ton in Replogle should be known to
the readers of this column. The stock
is very closely held. it being said that
about 90 per cent of it is locked up in
the strong boxes of a small clique
There was some profit taking in the
stock when it was selling above 80
and the men who sold this stock have
not come back into the market on the
buying side Of Replogle.
COaIers Make Gains.
High-grade coalers took the bit in
their teeth and scored good gains
in the middle of the final hour of
the session. Delaware and Lacka-
wanna gained S points. Reading
moved up ~ points and Chesapeake
and Ohio point. Southern Pacific
and Texas Pacific revived interest in
the cross-continent division and
equipments generally followed Bald
wins lead when it advanced 21a
points.
Crucible Steel Rallies.
Crucible Steel. which had dropped
off yesterday on a false analysis
of the dividend action. rallied vigor-
ously as it's significance was better
appreciated.
A large short account in Pan-Amer-
lean and Mexican Petroleum was forced
to take a severe beating. and the
abrupt rise in these two stocks at the
beginning Of the last hour gave a
new impulse to the entire market.
The last hour turned out to be the
iiveliest part of the day.
The upward movement had two con-
siderations in view apart from the
recognition that the market was COM
nlotaly sold ont First there was the