The Washington herald., 1920-08-31

IRREGULAR END
! Fairly Strong and Active
Market Reacts in Face
Of 1919 Money.
RAIL STOCKS STRONG
B. & o. Leads List Account
Of Scoring Heaviest on
Rate Advance.
RAIL STOCKS STRONG

New York. Aug. 3O.-StOCks closed
irregular today after a session in
which some Of the rails were par
ticuIarIy strong. The whole mar
ket was fairly active and strong
in the afternoon in spite of an
per cent renewal rate. But in the
last hour call money went to 10
per cent and the market closed in
the midst Of a slight reaction
caused by this rate.
The fact that the market could
be so strong in the face Of such
a high money rate Ittra-ted much
attention. 1t was ND that the
group Of spectators hnOwn as the
Waldorf crowd had ma la consider
able money IN cotton on he short
side and was accommodating stocks
again
strike Of the Brooklyn Rapid
Transit men. the threatenea coal
strike and the indictment OF forty
steamship companies failed to
dampen the optimisJ of the 'eet.
Wall Street believes that eN-ry-
thing bad has been discounted.
Rails.
e. < o. was strong because as
a freight road il will be the chief
gamer from the rate advance.
Railroad statisJicians expect that
the company will earn n per cent
on its common stock in the next
twelve months. Besides it owns
lot Of Reading.
Union Pacific was another strong
Southern Pacific. Erie first preferred
was almost buOyant. There is good
buying quietly Of such stocks as
Missouri Pacific preferred, Texas and
Pacific and St Louis and Southwest
ern because of the improved outlook
in the territories they serve. Specu-
latOrs have asked many questions
regarding the outlook for preferred
stocks of the big railroads. Those
stocks are not favored SO much by
traders. because they really become
bonds under the new laws passed by
Congress. They can never pay more
than what they are paying. The big
money will be in the common stocks
except in those few cases where the
preferred stocks hav passed their
dividends. St. Paul preferred looks
good to traders.
failure of a New York Stock EN-
change firm. There is no excuse for
any New York Stock Exchange firm
to fail. The only reason such firms
fail is that their patrons speculate.
The New York Stock Exchange pro-
tocts its members from such failures
by making them preferred creditors
Of one another.
Atlantic Gulf.
There promises to be a lively fight
over the attempt of the Atlantic, Gulf
and West Indies Company to seize
oil lands in Mexico already held by
American companies This is what
the company is accused Of doing.
The seizure Of these lands is per
fnctIy regular under the new Mexi-
can constitution, but it is done with
the knowledge that the American
owners Of the lands and the Ameri-
can government have both protested
against the law as being unfair. Mr.
funey, president Of the company.
has promised to explain his action
within day or two
Montgomery Ward was one of the
few stocks to show good buving
Yesterday among the industriaIs
IniS buying is in anticipation Of d
declaration Of a dividend.
Another rather important export
ing company that grew out of the
war excitement was being U0ui-
dated privately by the banks he
cause of the action Of the Federr,
Reserve Board in making the ex
panslon Of American trade imDos-
slnlc- The mortality among this
class Of companies is very great.
The banks simply put in their men
wind up the business and write off
the losses The British are getting
tne business that Americans arc
losing
Tn" Fedora Reserve Board is the
best business gctter the British ex-
porter ever had
Sinclair is being accumulated
again by an important banking
pool The stock is widely scattered
and most OF the people now renur-.
chasing sold out well above 50. Tho
widely advertised raid on sugar
stocks was frustrated by the pUb-
lIcity given to the pool plan.
IL is understood from bankers
that the French will send their gold
TO America before attempting To
make a public fotation Of their new
loan.