The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-10-06
OILS AND RAILS
HAVE ACTIVE
WEEK
Bulls Forced Prices Up to At
tract Following in Order to
Sustain Advances.
By w. s. COUSINS.
Copyright, 1923. by Cosmopolitan
News Seryfca1

News Service)
NEW YORK, Oct. 6.-Speculative
purchasing of the low-priced oil
and railroad stocks, with occasional
short-covering on the market lead
ers in the Industrial and steel
groups were the principal factors
in causing number of sharp up
ward movements of prices in the
stock market this week.
The volume of trading was some
what larger than in the two or
three preceding weeks, and it was
generally believed that outside buy
ing of stocks, which had suffered
from the recent depression. made
up a fair proportion Of the weekly
sales.
Bears Confused.
The bears were thrown into mild
CONSERVATION by the wide publica-
ton of reports and Opinions that
the short interest in stocks was
unusually heavy, that practically
every trader in the market was op-
Grating on the short side,I that tests
made in the market revealed a
small supply Of floating stocks, and
that bullish pools were about to
squeeze the shorts in some Of their
favorite stocks.
In q rush OF covering Of short
contracts on Wednesday, prices OF
active stocks mounted swiftly from
two to six, points, and the market
closed with buyers still bidding
feverishly for stocks. It is probar
BILE also that the professional bulls,
sensing the trend of prices, marked
up the prices Of the stocks" in
which they are operating IN the
hope Of attractinn larger public
following.
It Is recognized there can be no
sustained upward movement in
stocks without liberal public partic-
ipation-so there is some one on
whom to unload when the pro-
fessionals are ready to take :heir
profits.
The irregular course of the mar
ket on Thursday with declines in
prices Of q number of active stocks
proved once more that the public
is not buying stocks in sufficient
volume to sustain an extended bull
market.
Oil Stocks Recover.
Most Of the low priced oil stocks
which broke badly under the ham.
mertng and forced selling which
characterized the middle of Septem-
Der when passing dividends seemed
q common thing have recovered
substantially from their low levels,
rejecting the more optimistic feel
ing OF the leaders In the oil indus
try regarding the overproduction
and distribution problems with
which they have been graphing.
The last three weekly statements
Of the American Petroleum Insti-
tute indicate a gradual decline in
the production of crude oil in the
midcontinent and California fields,
while consumption figures keep
steadily mounting.
The market record Of Cosden,
MARYLAND, Phillips, Texas, Pan-Amer-
lean and Sinclair Oil stocks showed
a turn for the better and even the
Standard Oil shares moved I'D the
scale.
The railroad shares continued
their movements to slightly higher
prices. Interest conversed on a
number OF stocks on which the
prospect OF resumption or charging
Of dividends seemed promising.
Southern Railway. which is now
earning at the rate of $40 a share,
and on which it is believed a divi-
uen0 Will De declared this month,
was the leader Of this group, selling
within 2 points of it's high for the
year. st. Louis-San Francisco pre-
ferred gained a few points on the
same stimulus.
Investors in railroad stocks. it is
reported. have been attracted to the
better grade of divided rails by the
extremely favorably record Of earn
1ngS this years. a record which
may be maintained we'll into next
year.
The irregular movement in the
last full session OF the week can
celed many Of the gains registered
In the first three sessions, and pro-
fessional pressure against active
stocks was again in evidence. Thus
the week ended as it began. dull
and irregular. with professional &C.
ttvity dominating most market
movements.