Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-05-27
STEEL COMMON LEADER
WITH MEX. PETROLEUM
Shrcwd Trader Predicts Mar
kct Advance for al Least
Two Years.
GARY SPEECH STIRs STREET
Bankern Avnit Rcnding Decision
From the Supreme Court on Nom
day-Erie bonds Are ia Good De-
mnnd,
GARY SPEECH sT1ns STREET.

NEW YORK. May 2G.-Au OF to-
Gays news and comment by promi-
nent men In financial and Industrial
circles was favorable and construc-
i've consequently prices Of stocks
opened higher and continued very
strong. under the leadership OF MeNi-
can petroleum.. Studebakcr and steel
common. There was much week lend
short covering on the part Of profess
sional traders. Il majority OF whom
all OF this week have been short Df
the market Naturally there was
much en,husinsm on the part %:
'hoso who for days have been talk
Ing higher prices.
Tho stock market Is going 10 adj
vance for at least two years one
/ OF tho shrewdest traders In Wall
Street. who usuaily keeps his head.
h remarked today. adding with "A wave
Of his hand like the air OF telling
~aitor TO keep tho change. what
IS tho uBo of talking fractions?" Many
people who have been in Wall Street
my length OF Time DO not like the
long side OF the stock market when
every development appears favorable
md tho big public Is specializing FOR
riae. II suggests strongly that
d!str!bution Is going on
Gnry Speech Interest. Street.
Much was made In Wall Stree, to-
day OF the remarks OF r.. H Gary.
chairman of the United States Steel
Corporation. before the American
iron and Steel Institute. Il has
not been very long ago .!uuo tho
judge himself was saying al one OF
4 these same dinners what Wall street
understood him TO mean that he failed
TO see the Improvement in general
\ trade, and In his line. which tho
A stock market sccmcd 10 he discount
Il Ing. But that waH once when he
4 should have gcen talking his usual
4 optimism. Since then the stoci; mar
kct has more than discounted the
Improvement he now sees. He sa!a
today that the country now seemed
4 nearer real prosperity. although at
times Il seemed obscur"i, That the
volume OF business IN his line was
i larger and increasing with profits
not satisfactory. but with few. II any,
Il who should he making losses. lie
q hopes that there VIII SOON bc re-
- Adjustment following tho fre!ght-ratc
reductions that vii! place the stcc!
- trade on n fair competitive basis
And In the meantime. Wall Street
Understands that the 10 pct cont re-
duct!on IN freight rates WllI lower
1 stccl production costs by Sl.2J ton
the Rock Island Frisco system. has
been elected president OF tho Rem
inSton Typewriter Company. rElg is
y not the hrst case OF where an out
= slider has been brought In to settle
an internal row IN an important cor
rorauon. when large shnrcholders
OF Westinghouse were making "A
il Eight on George Westinghouse. Rob
II ert Mather. then president OF ROCK
- Island. gave up a 10000 job ia be-
come the executive head o! ;hc West
inRhouso Company. That aad sub
sequent good management settled the
row.
Good buying was Witnessed In the
81 bond market today, Liberty ard Vic
tory bonds advancing with those Of
Il foreign governments. The ncw (,
per cent bonds OF the New England
Fl Telephone Company sold three
FL eighths OF a point above the sab
i scr!ption price. Eric bonds were IN
very good demand The company re-
ports for the first quarter OF the year
II net operating Income % sG.GlV.OU0
against a deficit for the first three
months OF 1921 OF SI.ii2.00O This
Fl increase was due partly 10 very heavy
coal shipments In anticipation ot the
strike. Eric handles both ha.! ana
EOit COdi. ness rhTHliSS explain
FL Erie's recent strength. making IL un-
~ necessary to crcdi,, the merger
- rumors now being widely circulated.
- Bankers In Wall Street would not
be surprised to get Reading de-
cision Monday from the Supreme
81 Court. and would not De surprised II
- the court decided that only the com
mon stock could share In the distribu :
Iy nS u,
the Union Pacihs- Southern Pacific
dissolution ordered by the Supreme
o. Court for breaking the Sherman law
Union Facihc's preferred sharchold-
78 ers were not allowed to Join in tbs
distribution OF assets
with large offerings OF now &C.
II curitles on an incomt return basis
as low as per cunt and small
fraction being quickly oversubscribcd
= and with the prevailing rates on
time and call loans plainly indicating
that there Is an enormous amount
:. of idle capital In the country 1t is
"a not surprising that the interest rate
81 on the new offering of Treasury notes
Is as low as gle per cent. wall
= Streets only surprise is that the new
offering was not larger than $780,
= 900, 900.
Youngstown dispatches announce
= that President Campbell of the
Youngstown Sheet ana Tube Com
pany, after having declared he was
all through with merger talk, had left
town to consult with officials OF In
80 land 90 effect consolidation. Wal
Street had about concluded that all
prospects for mergers included the
one between Lackawanna and Beth
l"hem. ana one between Republic
2R Mid"nie and Inland. However. some
I'd time ago Wise men in the financial,
y district concluded 90 have no pre-.
III conceived ideas about what was o,
was not going to happen In the Yro.
posed consultations OF the moe.
,lcmG-nt steel companies hut to take
IL" news as II came daily, or ever
iso' ;an once day.
GREATER ACTIVITY