The New York herald., 1922-04-08
FINANCIAL NEWS
AND COMMENT
Speculation Turns to Rail and
Traction Stocks - Many
New Highs Scored.

Speculative endeavor switched rather
abruptly yesterday from Industrial
stocks to the railroad and the traction
groups. but in the first and last hours
of trading a pace almost as rapid as
that of Thursday was maintained, and
many prices were carried forward to
new high points for this year. Manu-
means neglected and such issues as Mex
lean Petroleum and Gulf States Steel,
in which the floating supply was limited
and the short interest substantial, gave
pronounced demonstration of strength.
Net gains ran from point to points
among more prominent shares, one or
two doing better than that maximum.
The easy position of money continued to
be an aid to operations for the rise., as
adequate supplies of funds fxr call loans
were available at ~ per cent. rate
which. near the end of week Of tre-
mendous buying of stocks. carried its
own suggestion Of recent accumulations
of money in New York.
Inc overnight NEWS tHdL the lHtcI-
borough Rapid Transit Company had
STAYED off receivership through arrange
ments to scale down fixed charges on its
Manhattan Elevated lease was naturally
forecast of what would happen when
the security market opened. So anxious
were buyers to acquire Interborough
Rapid Transit s per cent. bonds that the
first purchasers were willing to pay tx
and sA points more for $4,000 Of them
than their price OF Thursday. 1t was
not surprising that that extraordinary
movement should bring out heavy offer
ings, and before the close the initial
advantage was reduced about points.
The significance Of concessions between
opposed interests in the Interborough
situation, however, was not lessened
marketwse by the reaction Of the bonds.
and local traction stocks gave brilliant
performance of strength, especially
point advance. Holders of the B. r. It's
securities have been impressed with the
growth of its earnings in the last three
months, and. although full reorgan-
ization is. presumably. far off. the
growth Of its revenue points toward a
less arduous and expensive process Of
rejuyenating the property than was
thought possible during the depressing
days Of last summer. B. r. 7. per
cents went forward 81 points and spec
uIators were sufficiently willing to take
a chance on the future of Interborough-
Metropolitan 4hs to bid them up
points to Is.
The marked demand for Reading,
Pennsylvania, Southern Pacific, Union
Pacific, Chicago and Northwestern,
Norfolk and Western and other rail-
shares of the investment class showed
that the public was taking due notice OF
business Improvement and of railroad
plans for enlarging their facilities. 1t
is such developments as the Union Pa
cific's decision to spend $29,00O,0O0 for
new equipment and additions to its lines
which describe the business outlook al
most as completely as actual figures OF
growth Many rail shares which do not
carry dividends went to new high levels.
and 1t was only in the last hours out
break OF activity among the oil and steel
issues which prevented yesterdays ses-
sion from being pretty well monopolized
by transportation stocks. The turnover
of 1,555,000 shares was much less than
that of Thursday, but large enough to
put it in second place for this year.
The wheat crops condition on April
showed it to be nearly per cent. under
the ten year average. but, at that, Its
yield promises to be within 14,0o0.ooo
bushels of the final estimate for 1921.
Wheat prices were slightly firmer yes
terday than they were on Thursday.
Cotton moved through very narrow
range, speculation being decidedly
LIGHT