The Washington herald., 1921-03-13

ing at around Sll5 a share. United
Fruit stock also has been loaning at
a substantial premium for some
time past. A Httfe over a year
ago when General Motors common
was selling above 400 there was
stfn premium charged for this stock
And yet all of these Issues in turn
have receded from their higher
levels, and many are wondering IL
the existence OF premium on
stocks actually indicates anything
except an artificial situation. 1t
would appear on the face, in view
OF the foregoing. that Il Is a per-
tectly easy mstter for insiders" to
bring about situation calling for
a. premium on a given issue. par
ticularly II the stock involved in
closely held. Therefore. the rank
and file has become decidedly bear
ish on these very stocks which now
carry a substantial premium in the
loan crowd.
Railroad Fight UpPermest-
Some OF those who have main
Il tanned that the time was not right
for purchasing stocks now feel that
the situation is gradually changing
n Nt1dl CAPCItaAA1FtA VI -
decided turn within a comparatively
short time. The railroads of the
country just a. the moment are In
the midst of one of the biggest
fiehts that has confroned them in
many years, namely. that of read
justing conditions which were al
lowed to creep in upon their operat-
ing affairs during the period Of the
/ ,ror and povarnnart oWnerShin
That the men will not strike appears
to be a foregone conclusion II is
not a time when strikes are popular,
because there are thousands OF un-
employed individuals all over the
| country awaiting an opportunity tc
| fill the places left vacant by any
/ group of men that may see Mt to
take a vacation as was the case
with the so-called .outlsw" strike
of railroad employees about a year
ago. At that time, the roads were
in great difficulty because there was
an actual shortage of cars and 3
large volume of business was In
transit with more awaiting ship
! ment at central points. The Labor
element knew that IL had railroad:
IT its mercy ard did not hesitst Il
to stop work notwithstanding th'
unold suffering and Inconvenience
that resulted therefrom. Therefore
the public would not be in sympathy
with any such move on the part oi
railroad operatives at this time, anc
the general belief is that the initia
II tion of a walkout would prove on,
of the most fatal steps that railroad
employees could possibly take. Thes,
are all factors having an important
bearing on the stock market, ant
have Influenced unsettlement dur
ing the past week to an appreciabl'
extent, most of the rail issues il
particular. sustaining sharp reac
tions as compared with the previ
ously prevailing quotations, an
many of the stocks included in thi
|. group have. not only touched. bu
gone through their low levels o
last December.
As soon as the financial clou,
has partially cleared. careful oh
servers of market conditions be
lieve that the first signs of better
ment stockmarketwisew will be in tn
motors and oils. The motor situa
ttion has been in the dumps 70
| past anu NO" - gNcN oS
ginning to emerge from a perio
of inactivity which has covered
considerable length of time. order
having first commenced to fall OF
in substantial volume last August
Many OF the factories have bee
closed but are gradually reopen
ing, first one and then another de
: partment with a result that tn
: outlook today is improving. Thi
should not be interpreted as indi
eating, however. that the presen
calender year will be a satisfactor
one for the producing companies
because Il will not. It is not plaus
ible to expect that With pronounce
labor unemployment all over tn
country and the resultant reduce
absorptive power of wage esrneri
there will be any substantial buy
ing of pleasure cars and IL is tn
, purchasers OF this character whic
really make the motor trade bouy
! ant. The oil situation is showin
, signs OF betterment following tn
, extensive price cutting era whic
has entunder way for a couple o
months past The large and lead
ling on corporations ofSthe countr
are buying oil and storing II In tn
belief that within . reasonable tim
there win follow q liberal deman