The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-08-09
Trends
Big Shots Now On
Stock Markets
Firing Line.
by VINCENT LYONS
Times Financial Editor

TWO slgnihcant items Tor ioi-
l. lowers Of the stock market to
null over came to pass in the
last few DAYS. Number one was
the disclosure that John j. Ras-
kob and Arthur D. Cutten. two Of
the ,ountrvs famous market oper-
atol ;. are nack on the firing line.
Nun. Der two was the announce
ment that the short interest on
the New York Stock Exchange in
creased a bit during July.
Back in the hailoWed DAYS Of
1929, days which are mentioned
with reverential awe in the flnan-
cial canyon, the simple phrase
"Raskob Is buying Steel galvanized
Wall Street into action. The
small trader. whose flyer n the
stock market acted as a narcotic
on him. fell for these intermittent
reports like a ton Of bricks. The
information often was noised about
that "Raskob was buying but rare
we're the occasions when II was
stated that 'Raskob was selling"
Mr.. Raskob. along with William
Grape Durant. the former motor
magnate. Mike Meehan. special
ist in Radio. Jesse Llverm0re. the
Boy Wonder grown old; the Fisher
brothers Of Detroit and others OF
their ilk. we're thought to have
supernatural powers IN the field
of stock market trading. Runners
that any of these glamorous fig
ures were acquiring certain issue
attracted numerous odd-lot traders
to the buying side.
THE Securities and Exchange
Il Commission earlier this week
reported a number of large flnan-
cial transactions in the securities
markets during June. The more
important Of these disclosures was
the information that John j. Ras-
kob acquired $3.50 shares of Gen
eTal Motors Corp. common stock
during the month and that Arthur
w. Cutten sold 24OO shares Of
Loose Wiles Biscuit Co. common.
In these last few years Mr.. Ras-
kob is believed to have displayed
no more than a perfunctory in
terest in the stock market Cbut
then who HASN'T. Some verlficatiOn
for this belief is contained in the
fact that prior to the June trans
action Mr.. Raskob'S interest in
General Motors common was linn
tied to a measly Is shares.
Mr.. RaSkob. director and mem
Der of the finance committee of the
General Motors Corp. always has
been rather partial to his own COM
pany's stock. If he still has the
shares purchased in June hand
some paper profit stares him IN
the face. This. Of course, would be
in keeping with the legend which
has been built up around the for
mer chairman of the Democratic
National Committee.
Turing June the highest level
II General Motors m m o n
reached was 81. Assuming that the
purchase of the 16,540 shares was
made at the top level, the cost to
Mr.. Raskob was s562, 800. Today
the stock was resting around the
years peak quotation of 49,, which
would make Mr.. Raskob's commit
ment worth S719,490, or a paper
profit of S157130 This is sizeable
figure and is sufficient to pay Sam
uel insult his annual pension for a
period of seven years.
In addition to the appreciation
which has taken place in the mar
ket value of his investment. Mr..
Raskob. assuming again that he
still retains the stock. will pick up
a few more dollars as the result
of the recent dividend action taken
by directors of the General Majors
Corporation. The board this week
ordered a 50-cent quarterly dis
bursement in addition to an extra
Of IS cents, both payable Sept II to
stockholders of record Aug. Is. This
step will net Mr.. Raskob an adj
ditional S12.405.
The New York Stock Exchange
disclosed that the short interest
existing on the Exchange increased
0.276 shares during July to a total
of 870,813 shares. The fact that the
short interest is moving up close to
the 100000 share mark would
tend to indicate that the profess
Sional element Is not entirely of
one mind in regard to the markets
future trend. However. at the
same time the existence of this
condition aids the technical posi-
ton of the market.