The Washington herald., 1920-09-30
RAILS FEATURE
IN WALLSTREET
Purchasing for Rise Causes
Stocks to Close with
/: Net Gains.
UTILITIES ARE REVIVED
Heavy Selling Of Industrials
Hammers that Stock to
Net Losses.
UTILITIES ARE REVIVED

,New York, Sept 29.-Price huctu-
afions in the stock market today
reflected the belief prevalent in the
Street for the last ten days that the
rails were a purchase and the in
dustrials a sale. A surprise of the
session, however. was furnished in
the revival of interest and specu-
lation in public utility securities.
Industrial issues closed with net
losses ranging from a fraction to
nearly points in the most active
issues while the final figures for
railroad issues showed gains or from
a fraction to . points.
Expectation that the independent
steel companies would shortly an
nounce reductions in the prices of
their products together with fur
ther cuts by the automobile com
panies impaired heaviness to the
industrial issues, some of which
touched new low prices. Some steel
products have already been shaded.
according to one trade authority.
Prices being charged by the indie
pendents are from s5 to SO a ton
above those at which orders are
being taken by the United States
Steel Corporation.
Rails.
Railroad shares were bought for
the rise. a canvass of some of the
large commission houses shows that
while there has been some buying
of rails for cash by investors these
concerns are carrying relatively
small amount of railroad issues.
Those persons who have the rails
have purchased them with a view
to holding until they obtain large
ppofits.
Call money which has ruled for
several days around per cent. but
has loaned as high as 9 per cent
after the end of trading rose to
per cent today during the hours of
trading. The higher rate was at
tTibuted to an increased demand,
mOnth-end readjustments and with
drawals by the United States gov
eminent.
Public UuIIties.
The increased rates for gas and
larger fares that are being granted
in different parts of the country to
public service corporations began
today to find reflection in an in
creased demand for those securities
which have been in i'll favor ever
since the beginning of the war when
materials and operating costs began
mounting. The advances scored by
some Of these companies were sub
stantial.
Tires.
With price reductions becoming
general among the automobile COM
panieS the financial district is now
looking forward to a reduction in
prices by the tire manufacturing
companies. With the exception of
one company practically all the
large concerns have in reality been
reducing prices quietly to dealers
through the subterfuge of sending
the dealers more tires than they
ordered for the total cost of the
number billed. For instance a dealer
orders geo tires and receives 22O.
dealer shows his bill which stipu-
lates the payment FOR 200 tires.
This has been going on for some
time and many persons are of the
opinion in the financial district that
It is about time that the tire manu-
faCturers took the public into their
confidence and came out openly
with u reduction in prices. Impor-
tant men who know the tire manu-
featuring business state that there
is about three months 'overproduc-
tinn Of tires in the warehouses and
factories.