The Washington herald., 1920-07-25
STOCK MARKET
TONE VARIED
Evidence Of Pronounced
Strength Underlies All
Different Movements.
ISSUES ACCUMULATE
! Demand Becomes Broader
When Prices Reach
Low Levels.
ISSUES ACCUMULATE

: The stock market during the past
week was one OF mixed movements
and varied tone, but underlying all
the different market movements
there was evidence of pronounced
strength and even where substan-
tial losses occurred because of spe-
cial influences, the demand broad
ed when lower prices were reached.
Taken all together, with the excep-
ton OF liquidation in the stocks Of
sugar producing companies. the
week was one OF accumulation of
stocks because OF hopes that an
nouncement OF action by the Inter-
state Commerce Commission giving
the full measure OF rate advances
VIII be an incentive TO both invest
ment and speculation in the railroad
list and with these stocks and bonds
from the low level in which they
have rested for so long a time. The
labor point of view was interjected
into the situation early in the week
when the Railroad Board announced
the advances agreed upon in wages
TO railway employees OF practically
all classes. 1t was insisted in some
quarters that as the advances grant
ed amounted to only one-half of
what the railroad labor organiza-
tions demanded that they would
prove unsatisfactory and not be
accepted by the representatives of
the railroad employees. This belief
was used as a reason for selling
railroad stocks in the first half of
the week. but the recessions caused
by this selling did not last long,
and advances were recorded in the
later part Of the week. What labor
-xrHN L. i -
creases can hardly be called a mat
ter OF conjecture. With business
conditions as they are II must be
assumed that railroad employees or
any other employees will be pleased
TO receive any amount of increase
over the high wages already pre-
vailing, but as a matter of politics
the labor leaders may naturally be
expected to belittIe the increases
and pretend that they are dissatls-
hed.
II is not to be expected that ran-
road stocks will discount rate ad-
vances to a material extent. but the
action OF the Interstate Commerce
Commission. which is looked for
early in August will exert its full
influence after the rate advances
are a matter OF record.
The coal stocks came into greater
prominence during the week chiefly
because Of the persistent accumula-
tion Of Reading. One house. repre-
senting Philadelphia banking inter
ests identified with the company
since its reorganization in 1896.
bought 30. 900 shares during the
past week and made IL at times the
market leader, forcing its price up
to a new high since the week in
which the Supreme Court decision
was rendered. Delaware. Lacka-
wanna & Western was the strong
est Of this list as far as the extent
OF advance is concerned. moving up
over 10 points on one day and
trengthening the belief that the
company will soon announce de-
velopments that are expected to
Justify the stock selling at a far
higher level Southern Railway was
the feature Of low priced railroads
being bought by the same interests
that were so active in Reading and
II was generally understood that a
strong syndicate has been accumu-
lating Southern Railway and which
is in a position that could easily
justly the placing Of the common
stock On the dividend list. although
in these times Of improvements and
AASA NpEl u NOuAO seem redSOnaD
70 put back all earnings possible
into TIE road until labor and fnanc-
ing positions improve.
The steel industrials moved with !
In q narrow range with pressure
against those stocks at intervals.
but they were not materially chang
ed during the week in their market
position Petroleum issues had in
teryals Of strength with an advance
in this group Of stocks at the end
Of the week A feature OF the
weeks trading was the development
OF sudden pressure against the
stocks Of sugar producing compan-
les causing these shares to fall from
to 10 points. This movement was
in harmony with the unsettled con-
ditions Of the sugar trade, raw
sugar sustaining a further loss and
now being cents below the high
range prevailing earlier in the year.
Call money was steadily held at 3
and "a. Time money was quoted
at 3 per cent bid on all industrial
collateral without a supply even at