Evening star., 1920-03-13
CLOSING IS STRONG;
RA|lSPROM|NENT
BY STU ART y. WEST.

WALL STREET n. Y. March 13--
The speculative faction working for
lower prices did not have today the
assistance of a tight call money mar
ket as they had yesterday. The polit-
ical upset in Germany had no effect
because aside from it's possible tenn
porary effect on sentiment it was
not at all a bad thing from a con-
servative financial point of view \
new short interest had been built up
yesterday and had not covered at last
nights close because. according to
theories of reaction. prices were sup
posed 10 work lower. Therefore when
it became apparent at the opening
this morning that no stocks were
pressing for sale the bear contingent
were made extremely uneasy. Their
anxiety was increased toward the end
of the first hour by the appearance
of heavy buying orders in Reading
and Texas and Pacific.
Reading had been one of the par
ticular- favorites of short sellers yes
terday because. having had a larger
advance than the rest It was assumed
to be more vulnerable The diScom-
future of the Reading shorts had its
effect upon the whole market. but
particularly upon the other rails.
buying Movement Spreads.
Reading and Texas and Pacific to the
rest of the railway group. Great
Northern and Northern Pacific were
conspicuously strong. and there was a
suggestion that certain international
houses had gone short of these stocks
a month ago, when exchange was SO
! demoralized, expecting more invest
ment liquidation from abroad and.
disappointed in this, by the turn in
exchange, were finding themselves
compelled to cover.
The renewal of the upward move
ment in the rails was the more signifi-
cant in view of the effort to arouse
msgivings as to whether the new
railway bill will prove as salutary as
in the first outburst of enthusiasm it
had appeared. Today's market gave
emphatic answer to this skepticism.
In the course of the second hour
short sellers in the high priced indus
trials were given another proof of
what it meant to go short of stocks
| that are so closely held, and where the
distribution of Treasury surplus is in
prospect. Crucible Steel and Chandler
Motors were the leaders of this group.
[ The idea that the market would hold
back because of uncertainty as to
! what the week end bank statement
| would show was another of the days
! theories which was rudy upset.
Street stin Optimistic.
| Wall street continued to be bullish
| in the outlook today, but was not so
| bullishly inclined on the imm ediate
market movement feeling that stocks
! will be cheaper some time next week.
| One writer of market opinion said in
| his letter this morning before the
! opening that There will be lots of
! bargains next week" Hardly letter
sent out from the big wire houses to-
! day advised the immediate purchase
| of stocks. all taking the stand that
| the market would work lower arl
| that stocks could be bought at lower
prices around the middle of next
| week. Several of the big commission
| firms which have been so bearish on
! the general outlook have completely
| turned around and now look for high
| er prices.
! In fact. it is hard to find market
| letter writer who does not feel that
the spring bull campaign is really
under way. but that it will back and
! fill for several days more until the
, credit situation is Strengthened out.
| American Locomotive.
! Probably the most striking features
| OF the six-month statement Of Amer
| lean Locomotive for the period to De-
cemher 81 is the revelation Of it's ex-
ceedingly happy treasury position.
says faNden stone * Co, IN its week
! ly maErket letter. At the close of
last year the company had in it's
treasury total of 32,765.000 of gov
! srnmeQt securities. consisting of S25,-
500, 900 of United States certificates of
!fndebt edness. S5.9S5.000 liberty and Ca
madam victory bonds and S4S0,00O
, United Kingdom three-year convert
| ibles. AS of juno 30 last the com
pany had but s4.043100 liberty loan
| bonds and s542. 900 Canadian bonds
| The moneys owed it by the Railroad
Administration in payment for loco =
motives completed last year have ap-
parently largely gone into United
States certificates of indie edness.
In keeping with the declining vol
ume of its business. American Loco
inventories. On June 80 materials and
supplies and work in construction ag-
eregated Sl0.S59, 900. On December 81
the total was S7.170.O00. The net
quick assets at the close Of the year
were S35.6S6.011. a sum sufficient to
Offset the subsidiary bonds and S25,
000. 900 preferred stock at par and
leave a balance of $S.754 OIL, or s35
a share for the common.
American Locomotive carried over
into the new year S7.S62.157 of un-
filled orders and at the time the six
month figures were issued il had
booked $12.S00.000 of additional or
ders, so that it seems fair assump-
ton that in the six months TO June 80
the company is assured of minimum
gross business Of $20.S00,