The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-06-21
PRICES.
GAIN DURING
WEEK
Recessions Under Profit-tak-
ing Easily Made Up by
Forward Movements
BY w. s. COUSINS.
international News Service Financial !
Editor.

By w. s. COUSINS.
international News Service Financial
Editor.
NEW YORK. June Consider.
ing the large volume OF unfavorabIe
industrial reports converging on
Wall Street this week, prices Of
speculative stocks held quite firmly,
and recessions under profit-taking
were more than made up by for
ward movements under the impetus
of pool operation. The trend of
prices differed in different markets
on practically every full session Of
the week, bonds advancing under
enormous demand and subsequently
lreceding under profit-takfng; wheat
acting in q similar manner follow
ing the publication of the Govern
ment's crop report, and stocks be.
ing intermittently strong and re-
dictionary as the speculative wind
shifted from one corner to another.
AS II in reinforcement of the
cumulative reports of declining
operation in important industrials,
such as steel, textile, ETC., a num-
Der OF the larger Industrial con-
Germs announced the passing of
divldends this week. In some cases
this was the result of greatly di.
minished earnings; in others a de-
termination on the part of man.
ayers to conserve cash and quick
assets even when dividend require
lnents had been more than covered.
Upward Trend.
| There was considerable addi-
ton to the list of big commission
houses which changed their posi-.
ton from the bear to the bull side
Of the market, and strongly ad.
vised the purchase of stocks at
current levels. Coincident with
these developments were evidences
Of pool activity in number-of
the Industrial and speciality stocks
like Colorado Fuel and Iron, Cast
Iron Pipe, Tobacco Products, Ma
rine preferred, Schultz Retail
| Stores and Industrial Alcohol. The
marking upward of prices of these
stocks was accompanied by flood
of reports concerning new and
prospective developments either in
| the industries they represent or in
the individual companies, such as
the renewal of merger negotiations,
the signing of leases or the broad
ening of the market for special
products or services.
Concentration of selling pressure
on Atlantic Refining Company stock,
| together with increasing productioR
of crude oil, accounted in large pare
for the continued weakness pin the
oil stocks, few of which made morn
| than fractional gains over last
weeks closing prices. The return or
seasonable weather has doubtless
| aided in the sale and consumption
| of gasoline, but, despite the opu-
mistic statements OF prominent lead.
ers in the oil industry market specu-
lators are still far from satisfied
| that the oil companies are in sub
stantial basis. The heavy liqui0a.
| ton OF oil shares in the last three
months has, of course, improved the
technical position of these stocks IN
the general market, but the specu@
lative community does not see any
special responsible for a speedy rise
in value of oil stocks.
Rails Gain Ground.
The investment rails" again at
tracted attention by their ability TO
break through into higher price
| ground, and a number Of new
highs were recorded in this section
Of the list. Recent railroad reports
emphasize the effect of the many
economies in operation, which have
added materially to the net income
Of the roads and strengthened their
| financial position.
AS against dividend requirements
Of from five to eight per cent
annually, some Of the prominent
roads, like Atchison, Atlantic Coast
Line, New York Central, Southern
Railway, etc., are earning from 10
| to 18 per cent on outstanding CAPT.
| tai, after making reasonable de-
auctions for depreciation, recap.
| ture fund, etc. The better showing
| IF the so, called weaker roads, like
New Haven, Seaboard Air Line
and Missouri Pacific has also at
tracted large speculative follow
ing.
Money Plentiful.
The super-abundance of money
and the failure of the low redis-
count rates Of the reserve banks
| to attract new business to these in
| situations are the outstanding fac
tors in the financial situation. Fur
ther reduction Of time loan rates
to 3h per cent this week empha-
sized the extent of the competition
of the banks to find employment
| for their funds. There was not q
large volume of new financing this
week, and competitive bidders for
new security offerings, both indus
trial and municipal, were unusually
keen. The foreign exchange mar.
kets. were firm and commodity
prices were generally lower.