Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-07-11
LINE IS DRAWN BETWEEN
RAILS AND INDUSTRIALS
DcmarCation Will he More Clearly
Indicated This Week by Int.
portant Developments.
REVIVE CoNFIDENcElN STOCKS
Proposed Plan to Pay $500, 600
900, Owed Railroads by Admin
istration, and Increased Earnings
Having Salutary Effect

NEW YORK. July I0-A limo of.
d"marcation between tho railroad
shares and industrial stocks viii bs
NOR clearly drawn this week by Inn
p"rtant developments In certain IN
dnstrial companies which have been
Iirtlhg with reccivcrship Tor weeks
These developments viii! also empha-
size the difference between efficiency
and iDcffcicncy in the oil business
The proposed plan 20 pay the $780,
100000 owed the railroads by the
administration and the Increased
earnings being reported by the trans
portation companies. is r"VivinE con-
fdence in those securities as invest
m"ntS. The acceptance of bonds hy
IN" soycrnmaut in place OF money
WIZ also enable the railroads to pur-
chase rolling stock and motive power
and expand their business. On tho
other hand. the financial pains being
experienced BY some OF the indus
trial companies are about to cause
tho sufferers to>ask for friendly court
rocecdinCs. 1t ia this latter de-
lNelopncnt, and the cNpcC tation OF an
Iounccment Of other unfavorablc de-
|Ne!opmcnts. that is causing prospec-
tive purchasers OF stocks to hesitate
! efprc placing their funds 20 work in
Industrial issues.
severe Competition Going On.
going on In tho oil business is cx-
ircctcd to east some dcrelcts on the
/ business shores, specially those com
1 anios which have had the tcmerity
publicly 20 fight the Standard oil
interests. Standard oil Companies
arc In excellent financial position.
They are well supplied with cash and
are situated 50 that they can wage q
successful price cutting war, Being
in possession of considerable cash, the
Standard OIL Companies can prac-
( tically name their own prices in max
! ing purchases OF oil from those COM
pagies which lave been storing the
/ ] roduct on huge scale.
/ Talking machines are working ever
. time in the financial district in an cf-
/ fort 30 put up the Industrial shares,
Tut the demand for photographs is
such that the talking machine busi-
Ircss has fallen off materially one OF
/ tlc pioneer companies being forced
| II close its plants for the first time
liz history. It's stock is not listed in
| Wall Street. but the shrinkage in
! is business is Indicative of what has
happened to other similar companies
=, hose securities are dealt in publicly.
! Pooling Plans Work Ont Well.
/ The land under which the large cop
Ter companies pooled n considerable
amount Of their surplus copper for
export and issued securities against
I the metal stored for that purpose, is
Working out well. Bankers who were
Instrumental in creating this pool say
The copper is steadily being reduced
! 81 sufficient volume to provide for the
rtnturing obligations.
] Private bankers are not expected
u participate in any pools formed for
the storing OF cotton for expectation.
,'hey do not care to do the same in
cotton that they did in copper, in rs
] uch AZ cotton is pcrishahle and It's
output cannot be controlled. Bankers.
/ however. commend the acion or the
VAR Finance Corporation in endcav-
ing to finance cotton. because 1t will
improve the banking situation in the
South.
| An cXpa nding demand for bonds,
especially speculative rails. is report
/ cl by the largest investment houses.
! The ovcrsupply of issues which oc-
! Cured several weeks ago is grahu-
ally. but steadily, being worked OFF
/ the shelves OF dealers into the safe
deposit boxes OF individual investors.
The inquiry Tor new issues was dem
! onstrntcd by the sale, in about two
hours, of S25,000.000 Canadian Ma
| tional Railway bonds.