Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-03-25
POOL TACTICS
. ARE DENOUNCED
Railroad Situation Still Too
Complex for Making an In
teIIigent Deduction

The behavior of what are called the
pool stocks yesterday was roundly de-
nounced in the financial district. One
broker termed IL disgraceful There was
report from New York that a no.
torious plunger was selling stocks right
and left under q fictitious name.
In connection with the annual report
OF the United States Steel Corporation
well-known broker remarked that he
would not want to 60 short on a stock
$loO share working capital and $50 a
share Of Liberty bonds. That, he
added, is United States Steel.
When call money was quoted at 10 on
the New York Stock Exchange yester =
day before the close it was said that
the Federal Reserve had probably ap-
piled the screws again, but a banker
explained that the government has been
withdrawing the proceeds Of tax collec-
tions to quite an extent and the addi-
tional pressure of commercial demands
has compelled the banks to resort again
to the rediscount counter.
Practically the same thing occurred,
he said, last year. At that time, he
added, the payment of taxes was ac-
companied by the paying OF of certifi
Gates Of Indebtedness which, in turn
created contraction Of rediscounts,
which was followed at once, by renewed
expansion in borrowing.
A prominent fnancier remarked that
4 in his opinion there will be little activ-
ity in railroad stocks in the near fu
ture, or any appreciable advance in
the prices of railroad bonds
| He said he had been discussing the
subject with banker who is largely
interested in railroad securities, and
he gathered that on account of the enor
nous amount Of new financing which
must be accomplished to place the roads
and equipment in proper shape that the
effect will be to depress railroad securi
ties below even the present quotations
For that reason, he said, he hat
changed his mind, as he was prepar'
ing to take advantage Of several bar
gains which are being offered in rail
road bonds, but he was convinced tina
il will take a long time to realize an!
profit which would tempt him to plac'
any considerable amount in such sc
curities.
That the above view is not general!
held was evident from the opinions o
some fnanciers who later expressed
themselves on the subject.
One of these said. while his firm deal
\ very little in railroad bonds. except II
some terminal issues. il a custome
should ask his advice as to the propri
ETY. of buying some good railroad bond
at present prices, he would unhesltat
ingiy advise him to do so. He said tha
while the new railroad bill is not every
thing which every one could wish for.
was the most progressive railroad leg
islation which had been enacted TO
many years.
OF course, he said, everything depend
on the liberal spirit in which 1t will b
interpreted and carried out by the In
terstate Commerce Commission. but II
to the present. he remarked. all til
statements published about their view
give evidence of n desire to be fair to q
i concerned.
Others said tho keynote to the situa
tion lay in the method Of valuatio
which will bc adopted by the commits
sion, and they hoped the hook account
Of the roads would finally he adopted n
basis, but they should he checked an
compared with other information on th
subject in the possession of the com
, mission.
For instance. said one banker. il
well known that in the figures submit
ted by tho Valuation Bureau Of th
commissions they have been in eXces
of the companies own book vanes
many instances. On this importar
phase of the law, he remarked. th
commission is allowed very wid
latitude.
Another banker said he did not he