The Richmond Virginian. (Richmond, Va.) 1910-1920, 1920-02-27
OGlS 60 sTRONe On
RAILROAD RUn0R


Nsv York. rAh. 7s.--stocks closed
strong today materially above the low
pxtces o. tia day because of report
that President Wilson would sign the
railroad hill Immediately. WALL street
construed this ~ something thst
would be very bullish for short Tune
anA even the bear party admitted ina.
n might cause . considerable rauy. ~
was considered huiltsh because IN tne
nrst place 1t would put the railroads IN
I nostt.on to 20 ahead with their BUS
inass On a substantial basis and In the
second place 1t would be reeuSe 10
fahcr and end the nationwide threats
OF strikes
the bad impression made by the re-
mort Of Republic Iron and steel was
~,nnhas,zed hy the report OF the Lack
aranra steel which showed only si.e3
a share earned on the common stock
on which II is paying dividends At the
rate OF Sc o share. These earnings
compare with $s3.7s share earned tns
previous year. Other staet companies
are believed 10 have done nuch ret
e. than Republic and I4scsswanna 30
~. nroha bly, the worst Is know re-
cprdinr that department of the mar
set Considerable short covering was
INDUCED in on that theory. The same
operators who sold so freely on last
saturday, Tuesday and "Wednesday DIS
snntiraed their aggressive operations
.oslay believing that rally tn the ralis
would give them s better basis for
ceiling
call morev WAS 8 pleasant surprise
b..cause II did net 60 above ten per
sent ali day. Sterling Exchange wss
weak Canada endsavored to correct
Yhe exchange situation between the
United states ard the Dominion by
z<e@ vSfxr hn
of securities in the United States for
cash ry Canadians. This embargo does
sscr affect margin accounts. The cash
business affected is so small that TX
will have no effect on the exchange
rate.
All the railroads felt the Influence
IF the improved sentiment due TO the
rarnor that the president would sign
TIE railroad bill. The high grade rails
trrrroved about as much as the little
ores although the theorists claim that
Tire low priced rails viii get relatively
yrare rourtshnent out OF the new stu
alton than will the standard companies
The tobacco stocks as group gave
a splendid account of themselves. 1t
was unoricialiy reported that the
United Retail Stores corporation had
earned about $4,000. cor in the first six
months Of its existence
Tobacco companies are Just now do
snl TIE greatest business on record
both in volume and in percentage or
profits,
In connection with the advance o:
IL points in General Motors Wall street
heard that canvass of the street had
aisciesed a short interest of some 40
no shares in tho new stock that la to
be issued ten for one for the old
There has been good buying In Mex
lean Petroleum and Pap-American .r~-
cei.tiy, but the purchasers have made
ZIG attempt to check tho decline ths
reason between that they wanted the
stock as cheapty as they can get H.
Regardless OF what may happen to
manufacturers Of fancy articles there
Stems TO be a general agreement that
basic materials will be in urgent de-
rslssnd fer several years and SO also will
railroad equipment. Therefore invss-
TORS are beginning to watch very care
fany high grade petroleum and steel
stocks and stocks OF the railroad equip
ssaent companies. Petroleum stocks
stand at the head OF the investment list
because 1t seems impossible TO imagine
situation in business that would re-
duce their earnings.
Disclosure in the Central Leather re-
port that the company carried in the
netghborhood of 225.o00.o00 worth of
finished products--carried them evil
Eantiy for the purpose OF prohteerfng
caused especial weakness In the Cen
trail eLather stock and in the stock OF
American Hide and Leather company.
HIDE and Leather. preferred, broke sh
points in a few minutes. but recovered
nearly FIVE Of IL later Whether justly
or uniustly the public has the leather
companies marked as protlteers and
This seems to be justified by the report
IF the Central Leather company.
Sugar stocks were strong on the
rally. The increasing ease with which
sugar can be purchased has softened
the public feeling against these Issues
which for time were on the profteer-
ing list