The Washington herald., 1920-05-22
STOCKS MAKE
FEEBLERALLY
Whole List Keen Disap-
pointment to Those Com
mitted to Short Side.
sTUDEBAKER COSTLY
President Erskine's Texas
Senator $ Speech Not Very
Profitable to Many.

New York, May Slater yester-
days Exceptionally strong close.
the stock market during today's
session was a keen disappointment
to those committed to the short
side. ,-...-..
For a time It looked as though q
rally Of some proportions would de-
vslop. but as soon as the short sell
J 1ers put out new lines the market
you'd show signs OF softenlng. This
as especially so with regard to
bose issues In which the shorts
ave been most successful OF late.
Studebaker.
studebaker has been the most dis
pointing stock on the list. 1t has
own little or no rally since it last
l25. At that time the stock was
center OF bulIish talk. and GER
I'm interests in Wall Street went
far as to say that Studebaker,
all speculative issues. would
Rove most Improbable to those
Iommitting themselves to the short
de- Just how much stock the pub
c. bit on between l25 and IFS is
roblematicaI. 1t was substantial to
ay the least, and then at the lower
tgure the pool behind the issue
hrew up the sponge. with the re-
fult that the price faded rapidly,
Itop loss orders caught were enor-
nous and the 125-ll5 buyers were
or the most part wiped out. But
hat little affair was mild compared
10 what has happened to Studebaker
tnd the Studebaker longs since the
FlS,0oe,o00 stock dividend was taken
Pm its market value. The day be-
lore the stock sold ex-dividend
President Erskine felt it his duty
70 Cheer up" Studebaker's common
|tockholders by making a speech
Pentting a Texas Senator-long and
Pullish-and as buIIish as il was
onS- The result was that Stude-
paker, which opened ex-stock diyi-
nend at so. was carried up above
81 on absolute outside buying.
The next day this same buying
carried the stock to above SO. For
the next few days IL fluctuated be-
tween 20 and SO. and then-well the
least said about what has since hap
oened To Studebaker the better. Suf-
nce II to say that there are now
quite few individuals who wish
President Erskine had saved his
Texas spaech for a more opportune
them. And IL might be
ndded that there are those who be-
feve that another Erskine Special"
would be Of little help to Studeba-
Ser common or to Studebaker's COM
non shareholders even at the stocks
present "pre-shrunk" market value.
Preparing for n Turn.
There are certain substantial in
|erests who believe that when the
pock market further eases off to a
POINT that will wind up with an
lther crash such as was witnessed
few days ago, 1t will then be the
signal for a turning point which
mould result in a substantial up-s
yard swing in many leading is
Iues. These interests are not only
|eavily interested in certain secur-
fies but their gigantic business in
frests cover all important sections
this country and parts OF Europe.
|hey are backing up this belief by
baking preparations along gigantic
inest which for the most part nat
rally should result in greatly en-
the market values of the
securities in which they are directly
concerned. To give out the names
II these individuals at this time
would be a breach of confidence, but
Is has always been the case in the
'Sst- readers of this column will get
he facts at the most opportune time.