New-York tribune., 1920-07-13
Rails Are Strong.
But Industrial
Shares Give WAY
Sharp Line Between Two
Groups; Features of Last
Week Under Profession,
al Pressure; Money at 8

There were two distinct parts to
the stock market yesterday. One COM
prised the industrial shares, which dis
played more or less weakness through
out the session, with practically no rail-
lying power; the other the railway is
sues, which rose buoyantly at times
sharp line of cleavage between the
two groups gave the market an ap-
| pearance of pronounced settlement,
| despite the fact that the sellin. of the
lndustrials was not especially impress
| sive, since it originated mainly in pro-
fessional quarters.
! With the Street primed for a con-
tinuation of the recovery begun week
ago, the depression in the industrial
list was disappointing to say the least
Two main influences were held ac-
countable for the unsatisfactory ac-
tion of the industrials. There was the
per cent renewal rate for call loans
for one thing, which represented an
advance of ! per cent over renewals
last week. This and the less favor
able showing made by the local banks
measure to check buying and induce
selling both for profit-taking and for
| the decline.
The other factor which worked to
the advantage of the short selling con-
tingent had to do with the extremely
serious situation confronting steel and
other basic industries because of the
transportation blockade. The prospect
that number of steel mills may have
to suspend operations because of q
shortage of coal and raw materials
figured prominently as a bear argu-
ment on the whole industrial group
Besides this the widespread reports of
crisis in the wooen industry and
allied lines added to the pressure of
unfavorable items.
Naturally the sudden and unexpected
check applied to the industrial share
list after several days Of advancing
prices had the effect Of dampening the
bullish enthusiasm of the trading ele-
ment. Traders began to wonder if.
after all, the rise of last week had
been only flash in the pan. Indus
trial shares certainly appeared to have
lost most of their vigor, and the mere
fact that the upward swing had halted
stimulated selling.
Stocks which were leaders on the
rise last week were among the weakest
yesterday. Baldwin Locomotive lost 4
points, Mexican Petroleum, IN; Cruel
BILE Steel. 41s; Atlantic, Gulf & West
Indies, 6; Replogle Steel, AZ; United
States Rubber, 3$s; Vanadium Steel,
Az; Houston Oil, 8, and Cuba Ameri-
can Sugar, 214. American Woolen
showed signs of real liquidation, break
ing to s6A, new low. The stock has
been weak ever since it was an
nounced that the Offering of new stock
had not been successful and had neces-
STATED the underwriting syndicate tax
ing all but a small portion of the 200.-
900 shares.
Strength in the railway department
saved the day, for the buoyancy of the
rails let in gleam of hope and helped
to revive the dropping spirits of the
market following. The rails cot into
action around midday and thereafter
held the center of the speculative stage.
Low-priced issues were among the
leaders, but the old line seasoned divi-
dend payers also joined in the general
uplltt Stocks like Southern Railway,
leader in point of activity; Reading,
Canadian Pacific, Chesapeake & Ohio
and Wabash came to the front, display
ing vigorous tone.
Gains were not held to the close,
Tor the unsettlement in the industrials
caused selling in the rails in the final
hour, but the tone of the latter con-
tinued firm to strong. The Street has
been buying rails for several days on
expectations OF a decision in the rate
case in the near future. 1t was rumored
yesterday that the decision might come
down before the end of the current
week, granting advances ranging from
70 to 30 per cent over existing freight
rates. This was enough to bring new
buying into the rails.
The advance in the call loan re-
nlewal rate was in keeping with the
less favorable reserve position of the
local Clearing House banks as revealed
in the Saturday statement. TODAY the
government will withdraw $1,000 900
from the banks, transaction which
had to be prepared for yesterday by
the depositary institutions. Gold to
the amount of $3,150,o0O bought in the
open market in London for local bank
ing account arrived and additional
shipments arc on the way, amounting
approximately to 100000. The for
eign exchanges showed comnaratiual,r