The Washington herald., 1922-01-21
STEELS AND SUGAR !
STOCKS FEATURE
EXCITING MARKET.
Gulf States Drops 20
Points From Days
High Figure.
MERGERS A FACTOR
Rumors of Amalgamations
Help Market Movement
OF Both Classes. ..

NEW YORK. Jan. 2o.-with sales
running well over a million shares.
the stock market was featured by
excited speculative bidding for GER
tain groups Of industrial shares.
Steels and sugars furnished most
Of the excitement. the movement
being helped in both cases by ru-
mors Of mergers. During the early
trading the Independent steel stocks
were conspicuous, Gulf States con-
tinuinE its spectacular run-up for q
while and then dropping 20 points.
The other Independent kept firm.
however and toward the close
showed gains OF from TO 5 points.
Steel common Joined the movement
in the afternoon and reached IS for
a net advance Of 3 points. Among the
sugars. gains OF from 2 TO 5 points
were made. Motor stocks and sew
eral other specialtles also were
strong. Rails. however, were quiet
and somewhat heavy. Bonds also
were quiet and slightly lower. CalI
money ruled at 5 per cent through
out.
At least one Of the other tndepcn-
dent steel stocks was as scnsa-
tionsl in the movement OF 'this
morning. as was Gulf States. That
was Repl6gle. Having closed at 3ON
yesterday. after a net gain Of "a
points, this stock opened this MORN
ing at 20 and rose TO 4l for a net
gain Of 10h points on a few urgent
purchases. Brokers ascribed this
phenominal overnight gain to a long
list of orders to buy the stock At
the opening without any price limit
knowledge that such a buying de-
mand existed caused traders a
withdraw their offerings until the
level OF 80 had been reached. After
lowering around 81 for a short time.
Replogle broke sharply. touching
53k before the end Of the first half
hour. Nanadium went up almost
points. Republic. rs: CrucibIe. 5Iz:
Sloss Sheffield. 3s, and Lackswan-
ma, ~. but all reacted sharply
on the break in Gulf States and
Replogle.
Brokers and traders who stood on
the sidelines watching the move
ment in steel stocks today were OF
the opinion that the rise was far
removed from any substantial mo-
| tive. One OF the facts which led
them TO believe that the movement
was purely professional was the
prominence Of Replogle. The belief
that this company is considered
least likely to be favorably con
sidered in the merger deliberations
| eliminates todsy's meeting Of the
Steel representatives as a factor
The only news on which the midday
move in United States Steel could
! be based was the American Iro-
and steel institute meeting today
Nothing as sensational as the
! movement in Gulf States Steel stock
up to noon today has been W.T.
messed in the market community
since the memorable Stutz Motor
incident Of 1890. To charactcriz,
the gyrations Of this stock as any
| thing less than a sensation wouIG
be under-estimstinE its relation L,
the normal procedure or the stocE
market. Gulf States sold as low a.
4ts last week, closing at SIi. Al
the close on Wednesday. Il stood at
65S and at the high point ycstcr-
day some traders thought il Wa
worth IS and paid that price for &
The closing price on Thursday Wa
So and the premium dcma nded ot
shorts who sought to borrow tho
| stock after the close yesterday va O.
l per cent The existence OF a largp
| short interest was attested to By
the sharp rise this morning.