New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-09-01
Railway Shares
Continue i'm Favor
I'm Stock Market
Many Issues in Group Touch
New Highs for Movement;
Iaustrials Move Irregu-
larly; Money at Nine

Impressive strength OF the railway
shares continues the outstanding feat
ure Of an otherwise uninteresting stock
market. Again yesterday, as on re-
Gently preceding days, the rails gave a
vigorous demonstration, forging further
ahead in response to buying that
plainly represented accumulation Of the
best sort.
In general the stock market was DOM
mated by the same influences as the day
before, and it acted in much the same
manner. While the rails were respond
ling to the effects of confident and we'll
sustained buy ing, the industrials limped
along suffering from professional press
ure and liquidation.
For the moment the rails seem to
have attracted a substantial following
III the market and at the expense Of
the industrial shares, which heretofore
have been the speculative favorites OF
Wall Street The change in the atti-
tudc Of the average trader toward the
rails is not surprising. The railroads
apparently have entered upon new
era by reason Of the Federal lcgisla-
natural that railroad securities of all
kinds should react favorably, particu-
larly in view of the fact that railroad
stocks and bonds have been lately SELL
ing at the lowest levels in many years.
The wonder is that investors waited SO
long before recognizing the change in
the railroad outlook.
Industrial stocks, of course, are at
fccted by q different combination of
factors. The general unsettlement of
business, with falling commodity prices,
high labor and capital costs and q
slackening in consumption, obviously
accounts for the action of the indus
trial share list. Although many mar
stocks have already discounted in large
measure the effects of this realignment
of industry, the immediate outlook is
not yet sufficiently clear to afford a
proper basis for a resumption of con-
structive operations. Such being the
case, the industrial share list continues
vulnerable to professional bear efforts,
and will do so until confidence is re-
stored.
Motor shares comprised conspicu
ously weak group yesterday, and the
professionals made the most of the talk
Of forced retren chment in the motor
car industry. There is no doubt that
the pessimism over the automotivc in
dustry is being overdone. Still, there
is plenty of evidence of general slow
ing down. There was also pressure
against the steels, certain of the ship
ping shares and many of the special
ties, so much so that the list presented
an extremely irregular appearance at
the close.
The buying Of the rails was not con-
fined to any one group. Low-prced
issues shared with the old line dividend
paying rails in the display of strength.
Efforts to check the rise here met with
little success, and although the rail
group closed under the days high
prices the net gains were substantial
in many cases, and in some instances
new high prices for the year were
established. Improvement in railroad
bonds was noteworthy feature of the
trading in investment securities.
The Street experienced fairly high
call money rates again yesterday, call
loans moving to 9 per cent in the after
noon after renewals had been made at
s per cent. This was better than Mon
day, however, when the high was 10
per cent The government made large
Withdrawals from the banks yesterday,
but this had been prepared for the day
before.