New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-24
improvement i'm
Rail Shares, but
Industrials Sag
Signs of Accumulation of
Railroad Stock; Recov-
cry Elsewhere Hats

Entering upon the new week, the
stock market yesterday proved dis.
appointment in that the recovery in the
industrial shares, which had developed
considerable vigor in the closing days
of the previous week, came to halt
and this part of the list displayed in
creasing irregularity. The market
while extremely quiet elsewhere con-
tanned much of interest, presenting a
distinct line of cleaverage between the
rail shares and the industrials, for al
though the majority of the latter moved
in uncertain manner, the rails came
through with a rather creditable per-
Torrance.
Action of the industrials occasioned
little surprise in quarters where cur
rent market conditions are we'll under
stood Last weeks recovery was main
ly due to the covering Of short stock
by the professionals. With the demand
from the shorts falling fiat. as was the
case yesterday, and with no other de-
mand to take its place. the industrials
lacked the support required to main
tain the momentum of the recovery.
cervers predicted, the position being
taken that such rallies as occur in the
| industrials from time to time can only
be Of temporary nature in view Of
the general lack of confidence, and must
be followed by sinking spells. All
things considered. the industrials gave
q good account Of themselves, particu-
larly when it is recalled that this group
has had fairly marked recovery from
the recent lows.
Influences affecting the railroad
shares make it possible for this part of
the market to move contrary to the in
dustrials Not only have the rails
been we'll liQuidated during req ent
months. but the transportation compa-
MES have An exceedingly promising out
look before them in view of the rate
increases just granted. This is being
recognized more and more by the in
vestment public, with the result that
there has been of late steady accumu
laton Of the rail stocks. Such buying
factor as time goes on and it is seen
how we'll the different properties will
fare under the new rates Among the
strongest spots in the rail list yester-
day were Baltimore & Ohio, Southern
Pacific, Union Pacific. Reading, Chesa-
pcake & Ohio and Norfolk & Western.
The decline of more than a point
in Steel common naturally had an un-
favorable effect upon the rest of the
industrial shares. Other steels were
lower. while the railway equipments
also settled back in moderate re-
action. Mexican oils, which had quite
a vigorous recovery last week, declined
easily under leadership of Mexican
Petroleum. Reports from Mexico rela-
tive to action by the new government
in the matter of overdue tax payments
induced certain amount of speculative
selling.
Moving against the general current
of declining industrials. the interna-
tional oil shares Royal Dutch and
She'll Transport and Trading attracted
attention by their sudden revival of
strength. Both of these shares are ex-
tremely sensitive to sentiment on the
other sidc of the water and their i'm
provement here yesterday was accepted
as a reflex of a more hopeful feeling
in London regarding the European out
look
Borrowers at the Stock Exchange
paid Z per cent for call loan accommo-
dation. which was also the renewal rate
ing eased of on fairly heavy offerings.