New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-03
Gain i'm Rails
lis Feature of
Short Session
Market Active After Fire
Causes Suspension;
Rally Continues to the
End; Bonds Stronger

/ Fire in the Stock Exchange BUILDING
yesterday temporarily stopped the ma
chinery of Wall Streets primary mar
ket in securities, causing a suspension
of activities until h o'clock in the
afternoon. On the resumption OF
trading, after the three-hour recess
while the fire was being extinguished
and the exchange was put In working
order again, vigorous market sprane
up and the abbreviated session saw a
rather spirited and cheering demon
straticn in the railway department. Al
the same time the industrial list, with
the exception. of few issues affected
by special influences, exhibited bet
ter tone and the market carried the
rally through to the close. In the two
hours $4,000 shares changed hands, a
much more active pace than was ex-
perienced the preceding day.
| The movement in the railway shares
was naturally the most important mar
ketwise development. Sentiment to.
ward the rail issues has been. steadily
improving since railroad wages were
reduced and better operating condi.
tions have begun to be reflected in
more favorable monthly operating
statements. The principal factor caus-
ing che Street to look with greater
favor upon the rails, however, is the
prospect Of the government making
available shortly $5oo,0Oo,ooo in cash
to the carriers. With these influences
combining to create a better senti-
ment, there has been steady &C.
emulation Of old line dividend
paying rails for fortnight, reduc-
ing the floating supply and max
ing the group more responsive to con-
structive effort Yesterday when buy
ing became active the tape at times
recorded long strings Of transactions
in the rails, making 1t look like one OF
the old-fashioned railroad markets
The Hill road stocks-Reading. New
York Central, Southern Pacific, Union
Pacific and Canadian Pacifc-were
among the leaders, although the low
priced rails also Joined in the general
movement What happened to the rails
as whole is shown in the average
price Of the twenty railroad stocks
used in the Tribune's daily table
which rose from 65.15 to 66.40 in the
two hours.
The industrial department., while
exhibiting underlying firmness, with a
number of issues moving upward
rather sharply at the close, did not
reflect the same degree Of vigor that
characterized the rail group. However
Mexican Petroleum and United Fruit
were strong, while United States Steel
moved up largely on purchases for the
short account. United Drug sold off
on limitations that further holdings of
distressed stock may have to be alb
sorbed by the market.
Although dealings in bonds were
conducted with some difficulty, owing
to the water thrown into the exchange
to extinguish the flames earlier in the
day, the turnover was large and prices
were we'll maintained. United States
government issues were strong, while
convertible rail bonds moved up in
line with the Improvement in railroad
shares. The investment market gen.
orally is exhibiting a stronger ten
dency and new issues that are making
their appearance from day to day are
being we'll taken. Indicative Of the
demand for prime securities was the
unusual oversubscription of the latest
Offering of Treasury certificates of in
debtedness, which has necessitated q
scaling down of allotments to not much
more than 10 per cent Of subscriptions
in the New York district
Money rates continued to reflect
slightly firmer tendencies, and after
renewals had been made at per cent
the call loan rate went to SIX per cent
The foreign exchanges were Irregular
with sterling slightly higher and
francs trife lower. German ex.
change made new low for the year
In the comm dity markets cotton closed
slightly lower, while wheat prices
finished slightly higher.