The Washington times., 1924-01-26
ROUTED
DURING WEEK
|NST0CKS
Market Rallies When Short
Sellers Are Forced to
Seek Cover.
BY w. 8. COUSINS.


News Sefvice.)
NEW YORK, Jan. 26.-The stock
market displayed an Irregular tone
this week. and its activities were
again dominated by operations Of
professional traders. The bear con-
tingent was not as successful az It
had been In the week previous In
forcing down prices OF market lead,
ers, and realizing their failure, they
inaugurated . covering movemsnt
which resulted In q general rally.
Pool operations very clearly DOM
mated major movements in specu-
lative stocks, with the public TAX
ing only q nominal interest. It is
probable that many spectators have
turned their attention to low.priced
bonds which have richly rewarded
those fortunate In selecting specula-
tive issues. Gains Of ten to fifteen
points have been registered In a
number Of the second grade Indus
trial and railroad bonds since the
turn Of the New Year.
Less Action I'm Dawson.
Trading in some of the old pool
favorites, like cast iron pipe and
Dawson Chemical, diminished as
new mediums appeared. These In
cluded General Electric which ad-
vanced to a new high point. Corn
Products gained twenty points and
registered q new high for all time,
United Fruit, National Lead and
others. Chemical stocks reRained
some Of the favor which charac-
terized their market course q few
weeks ago. and the copper stocks
tnaugurated simultaneous ad.
vance, as the price for red metal
showed q strengthened tendency.
Interest In some of these high
priced stocks was stimulated by re-
ports and rumors Of :'recapitalixae
ton" and the probable splitting up
OF the shares into smaller units with
extra allotments to present stock
holders. Such a move would COM
pei shorts in these stocks to buy
In q correspondingly larger number
OF shares in order to cover on
steadily rising quotations.
The latter sessions of the week
were featured by a moderate re-
covery In the active steel, equip
ment, leather and copper stocks.
due in part to short covering. Eenti-
ment was greatly improved by the
flood of favorable industrial ana
commercial reports confering on
Wall Street, and relating in main
to expansion Of facilities for larger
domestic business. Steel common
has wider investment appeal In
the prospect Of the continuance OF
the small extra dividend, putting
that stock on a s per cent basis.
Public utility issues, with q local
following, were favorably affected
by the decision of the federal mas
ter in declaring the one-dolIar gas
decision unconstitutional.
on Stocks Affected.
Improvement in oil stocks was
doubtless retarded by sensational
disclosures In the Senate investigar
ton Of Government oil leases. Pan.
American was most erratic. After
advancing q few points on the
strength OF President Wylie's state
ment Of the value of California
leases, this stock declined rapidly
under the influence Of Chairman
Doheny's testimony concerning the
100000 ''cash loan'' to ex-Secretary
FAN. Sinclair was stronger in later
sessions, as were Marland, Pro
ducers and Refiners and others Of
the active independent and Standard
OIL issues. Gaining in strength
and momentum as 1t proceeded,
firm market closed the week.
The money situation remains ex-
tremely bullish. There Is q pie
thora Of funds In Wall Street and
1t is inevitable that q good portion
Of It should find its way to specu-
lative channels. This Is Q powerful
factor in speculation and one that
is relied on by the pools.
Commodities markets were firm
and generally active. Sterling and
franc exchange dipped to. slightly
lower levels, the first part Of the
week, but recovered. Speculative
trading In foreign exchange IN not
In large volume, according to ex-
perts who maintain that buying ana
selling Is confined mostly to actual
commercial bills in the market.