Evening star., 1929-01-01
CHAPMAN PREDICTS
HEAVIER TRADING
Hartman & Co. Partner Sees
Greater Activity in Move
ment of Securities.

According to G. Bowie Chapman,
resident partner in Hartman & Co.,
it will be necessary during 1929, again
TO appraise the security markets by
groups and not as whole. For that
reason, in looking into the future, he
mentions certain groups of stocks and
draws the conclusion that this year will
see such heavy trading that 1000 600
snare days are a possibility" Although
conditions have been so changeable dur
ing the year just ended, Mr.. Chapman
still believes that stocks will eventually
settle down pretty close to their real
values. Regarding the outlook, the
Washington broker says
In expressing an opinion as to the
coming year. it seems to be most
difficult one because of the more or less
eXtravagant and exotic conditions which
have existed in the security market in
the past few months. To be judge of
mass psychology has proven a more
valuable asset than that of values. How
ever, in the long run values will win
out and be appreciated. 1t seems that
the rule which 1 expressed several years
ago, that it is best to take the market
not as whole. but securities by groups,
basing your opinion on the prospects for
the near future, should be your guidance
for the coming year.
"AS an illustration, the oil securities,
for the past several years, have been
going through a period of oVer-produc-
ton, but it does seem that if we apply
the rule OF common sense we know each
barrel of oil taken from the ground
leaves one barrel less; therefore. owners
of oil properties are disposing of their
oil at low figures, which is not likely
to continue for much longer period.
IT we consider that most industries are
dependent upon the use of oil, we can
see how basic this industry is.
mo automobile could be manufac-
tured or run without the use of OIL Our
public utilities could not furnish us with
heat and light; our manufacturing con-
Germs could not manufacture their
products without the lubricants that are
made from OIL no railroad could move
its cars without petroleum products; no
street cars could run without the use
OF petroleum as a lubricant; no steam
ship could leave our shores without oil
either as a lubricant or as fuel 1t
does not SCENE probable that another
year will pass before this industry will
fall into line and modernize it's methods
Of producing, refining, and distributing
its product, as the copper producers and
| refinerS have done in recent months.
Another department of the security
market which has also been neglected
takes in the railroad securities of this
country. An examination will prove
that most railroad companies today
have unusual surpluses and also are the
holders of securities appraised at far
below their true value. How impossible
it would be to duplicate our great sys-
TENS. Consider the value of their real
estate, their terminals and their facili-
ties for the handling of passengers and
freight.
'The consensus of opinion suggests
that gradual liquidation should take
place in securities which have had un-
usually rapid advances based on future
prospects, particularly chain store and
| automobile stocks. These securities
have probably discounted the major part
of any further distribution of their
assets or of their earnings for some
time to come.
In conclusion, let me leave with you
the thought, in answer to the many
critics of the security market, who have
INDUCED In Incorporate phrases, such
as the market Is committing suicide, -
and SO forth, that behind this great
security rise which has taken place is
fundamental change on the part of
the American public which has also
attracted the foreign investor, and that
| IS that the American public today is
not willing to be only a worker. but
wishes to be partner in the enter
priSes in which it is laboring and other
enterprises in which feels 1t there is
future"