The Washington times., 1925-02-07
PRICES HIGHER
DURING PAST
WEEK
Oil and Railroad Shares Led
Stock Market in Strong
Forward Movement
BY w. S. COUSINS,
International News Service Financial
Editor.

IT, Il.
Editor.
NEW YORK, Feb. 7.-OiI and
railroad stocks constituted a strong
and spirited team which led the
stock market into higher price
levels this week. At times the
speculation in these stocks was
equal in volume. and accompanied
by as spectacular price movements
as has been seen in any part Of
the bull market thus far. while
developments in the respective in
dustries have been as favorable as
any that have come to light since
the first of December. Public par
ticipation in the stock market was
on broad scale, indicating that
profits acquired In the early stages
Of the advance are being employed
to enlarge the commitments of
public and professional traders.
Bonds Active.
With Junior railroad bonds and
convertible industrial bonds follow
Ing the market course OF their re-
spective stocks, spectators in the
bond market increased their opera
tons, and resultant heavy buying
sent prices to new high levels since
1923, in some cases in a decade.
The adjustment and income bonds
of railroad companies, interest on
which comes before the payment
of dividends on preferred stocks
have furnished a very promising
field for the activities OF bond
traders and their market action
is seen in the advances OF from
1924.
Reactionary price movements :n
the grain, cotton and foreign ex-
change markets served to empha-
size the strong position .,f the
stock market. Wheat and rye and
other grains lost from 10 to Is
cents q bushel of the sensational
gains acquired in the hectic trading
OF the latter part Of january; cot
ton prices were generally reaction.
airy and foreign exchange QUOTA
tons showed modercte declines.
The advance in prices OF crude oil
and gasoline which started two
weeks ago went merrily along.
prominent buyers of crude oil and
refiners of gasoline bringing prices
into line" and meeting the ad:-
vances" of their competitors in the
struggle for oil supplies. Prohiki-
ton fell off nearly $4,000 barrels q
day and no new wells were forth
coming to take the place OF those
reported on the waIe.
Oil Prices Higher.
Pools pushed up the prices IF oil
stocks in the first part OF the
week and when profit taking APP
peared inevitable, the railroad
stocks were taken in hand. The
speculative district was flooded with
reports of gigantic traffic move.
ments, the largest in the history OF
American railroading for the first
month OF the year, and new merger
rumors were used to good effect.
Railroad stocks started TO soar,
with Southern Railroad, Missouri
Pacific, Katy, Wabash and other
stocks which in Wall street opinion
have not fully discounted the
favorable prospects of 1925, in the
lead.
The week furnished another good
example Of the expansion Of all
around activity to embrace some
sections of the market which have
been comparatively quiet OF late.
The equipment stocks, the shipping
shares, the motors. coppers. Cuban
sugars, public utilities and high
priced industrial leaders enjoyed a
good demand in every session Of
the week with an unusually small
volume of profit taking.
Industrial news of the week was
almost uniformly favorable The
high rate Of domestic railroad traf-
fic means not only larger earnings
for the railroads, but increased
consumption of commodities of all
kinds. The steel corporation was
reported operating at better than
81 per, cent Of capacity, with inde-
pendent steel manufacturers light
ing up additional furnaces. The
strengthening of the oil market
was carried one notch further
Commodity prices were slightly
higher; in good supply with call
rates settling back to per cent.