The Washington herald., 1920-05-06
HIGHER PRICES
AGAIN SCORED
Many Specialties Swing Up
ward, Due Largely to
: Short Covering.
aEPLoGLE coRNERED'
Action Of Stock Exchange
Leads to Conclusion Shorts
Are IN Tight Place.
aEPLoGLE coRNERED'

New York. May 5.-A continua-
hon of the higher price range
marked proceedings on the New
York Stock Exchange today. due to
, large extent to the partial cover
ing Of commitments by those
heavily short OF stocks. and In
some instances to very good long
buying by so-ealled inside inter-
ests.
Temporarily, . more cheerful
feeling 10 taken relative to the i'm
mediate speculative situation. and
substantial financial interests are
now Of the opinion that the stock
market will rally much higher be-
fore Q downward trend IL resumed.
These opinions are based on what
would seem to be = reasonable
foundation. inasmueh a. 1t IL
pointed out that not only are most
Of the speculative stocks In strong
technical position. due to their
seemingly oversold condition and
the. fact that the short interest ex-
listing is said to be larger than
Tor months past, but mainly for the
reason that the larger element 10
stock market to reach a demoralized
state They are still large holders
Of speculative securities, II II
pointed out, and being in this po-
sition. they viii naturally do every
thing possible to create optimism.
ut least until they can see their
way clear to liquidate.
New Financing Resumed.
Another phase of the situation.
Rs pointed out in this column yes
terday Is the fact that many rail-
road and Industrial Companies will
necessarily have to be financed, and
that Wall Street believes this un-
aertaking should be made as
quickly as possible. Under these
conditions, II is only natural to as
sumo that q so-called bull market
tor speculative stocks will be in or
der until this new financing has
been accomplished The initial step
In this direction was taken by
Kuhn, Loeb & Co., who. at nine
o'clock this morning, officially an
9ounced the fotation of s1o.000.o 900
Per cent bonds of the Delaware
Hudson Railroad Co. II the sue
sss Of this fiotation can be taken
. criterion OF what will happen
the enormous additional new Of
srings, Wall Street would seem to
correct In its prediction Of
'mporary bull market. The entire
sue Of Delaware and Hudson bonds
as absorbed within a period of
rty minutes after the official pub
Offering. However, there are
ore ways than one to construe this
emingly favorable investment
tuation- 1t might be that inasmuch
= Wall Street is using every effort
2 influence optimism, s6me favor-
Ole infiuencs could also have been
arought to bear in order that these
onds might be snapped UP quickly.
way must be paved for the 10
htion of considerably more than
Oo.oo0,O00 Of new securities, and
permit a small fiotation of s1o,-
1000 to show the least hesitancy
going big would mean financial
Iieids at this time.
RepIoEle Cornered.
The action Of the New York Stock
Exchange in requesting members to
sport all transactions in Replogle
teel from April 10 to May 4, In
Isive. naturally leads to the belief
at something out OF the ordinary
under way. In fact in some cir
les II was said that the committee
business conduct had come to
He conclusion. after a preliminary
vestigation. that Replogle was in
fair way to follow the course of
Sutz Motor. In other words, Rep
egle has reached, or Is about to
each. the stage Of being cornered.
The fact that Allan A. Ryan, who
, heavily interested in Replogle, had
an important bearing on the situ-
alton. 1t may be said, however,
thst interests far stronger than
Ryan are Replogle's real hackers,
ltf are Of a type to stand ready to
ostk up anything Replogle or the
Replogle companies may do. There
hfs been no secret of the exceed-
l1gly large short interest existing in
Replogle for weeks past. II these
interests have been caught in a tran
Of their own making, they should
hsmade to stand by their contracts
At any cost.
The New York Stock Exchange
cannot hope to permit the continue
ton Of short selling and at the
same time endeavor to create the
impression that it is opposed to a
hIuAtlOu over Wnlcn IL mas no con-
troll It must either abolish short
selling or permit those responsible
for these sales to fight their own
battles. To abolish short selling
would mean the death of specula-
ton
Texas OIL.
There has been good buying of
. Texas Oil for the past few days.
This buying. 1t Is said. has come
from so-called inside sources, or
from sources generally we'll inform
ed on conditions existing in the af-
fairs of the company. The strength
Of the Texas Company stock today
was said to be largely due to buying
on the part of those who foresee
much broader operations for the
I Company, and also on reports that
est50, ,000-barrel well had been sue
esssfully brought in. Texas has been
q thorn in the side OF the short
seller for some years past. and IL
predictions come true those who
went short when the new stock first
made its appearance will shortly
80 t. kaA