The New York herald., 1920-01-21
ADVANCE IN A DULL MARKET AND CLOSE STRONG
News and Gossip
of
Wall Street
MOTORS, PROGRESS.

GENERAL MOTOHS PRoGhEsSs
General Motors made further progress
in its recovery yesterday, after an early
irregular movement Around current
levels it appears to be receiving support
on dips. Buying is due 10 the large earn
inss. For the first ten months Of 1913
these amounted 10 Ssi ,0o0,0o0 before taxes.
Total earnings for the year were ap.
proxmately SOS, 900 COO before taxes. while
those for the current year IL is estimated,
will reach the new high volume OF
Sl4J, 600, ,O00. Earnings for 1918. before taxes,
amounted 10 S45, 900, 900. These comparisons
indicate how tremendous has been the
growth OF the General Motors Corporation.
Gross sales for 1920, according TO the com
panys estimtes, will reach $l,WOW0Wo.
Those for 1919 approximated 500 10000.
These figures are equal to the average
gross annual sales of the United States
Steel Corporation for the five years prior
to 1915.
FURRY IN SUGAR STOCKS.
Sugar stocks were quiet until the last
hour, when a furry of activity was created
by an Unexpectedly large buying move
ment. The group was led by Cuba Cane
Sugar which was bought on current re-
ports that half of the companys new issue
of debenture per cent bonds have been
lodged in the hands of permanent inves-
tors. This news coupled with the prospects
for large earnings this year was used with
effect in advancing the stock. American
Beet Sugar was less active, but was even
stronger than Cuba Cane. The fact that
an open market exists in sugar ana that
companies will be free to make "hat they
can. unhampered by restrictions, is re-
garded as very bulish on all sugar stocks.
FAMOUS PLAYERS WEAK.
Bears feeling around for weak spots in
the market discovered a vulnerable stock
in Famous Players. It broke points
making a maximum loss of 10 in two days
Sellers said that the syndicate which un-
derwrote the new issue of preferred stock
recently will be dissolved tomorrow. IL
is understood that this syndicate was not
very successful in disposing or the stock
and that il has a considera BILE amount left
on its hands This rumor accounted Tor
a bearish feeling regarding the common
stock Announcement OF a. new issue OF
theatrical stock also had sentimental
effect 1t is believed that the investment
market is being overloaded with new is
sues of all kinds, some of which have
been put out at prices which appear to DC
out OF line with seasoned securities.
RAILROAD EARNINGS.
Anent the discussion among conferrees
on the railroad bill over clause which
provides for division of railroad earnings.
attention was drawn yesterday 70 the
fact that Congress has no control over
income of roads derived from outside in
vestments There can be no division of
such returns. \ number of railroad COM
panies have large outside investments
which yield an excellent income. Among
these roads are Union Pacific, southern
Pacific. Reading, Atlantic Coast Line, st
Paul. New York Central and Chesapeake
and Ohio. While these stocks were mac
tive yesterday they received better support
than they have in the past because oil
realization of this difference between them
and other railroad stocks which cannot
figure on outside income for dividends
SHIPPING ISSUES RALLY.
Selling Of shipping stocks has been q
little overdone. in the opinion of interests
who have been following these issues. Yes
terday they showed g rallying tendency
This was particularly true of Internationa
Mercantile Marine preferred. IT was ar