La Grande evening observer. (La Grande, Or.) 1904-1959, May 19, 1923, Image 7

Historic Oregon Newspapers

La Grande evening observer., May 19, 1923, Image 7

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Newspaper Page TextSaturday, May 19, 1923. THE LA GRANDE EVENING OBSERVER ! PAGE SEVEN SHORT SELL1NS IS DANGEROUS WARNS BABSQN Millions -of Dollars Threat ened in Present Market, States Statistician. 19. The recent bear raids In the stock market have led a lurg-s uum ber of mull speculators to believe that good stock market days arc over. Popular fancy In this quarter 1b turning to short selling. Since ie technical position of the market is being1 undermined by this move, Jtoger W. Bubson's warning nguiuet this practlco issued today is partic ularly timely. ."1 do not pretend to be ablo 1o forecast the short swings of tlio stock market," says Mr. IlnoHou, "but I do know that the short Inter est developed since the recent bear raids probably tho lurgest In re cent years has reached a point where it is very dangerous. This It largely due to the fact that epttcu Jatoors all over the country have been curried uway by the prevailing bearish propaganda and have gone 'short' just as they buy stocks when surface conditions look opt:mtdt:e. It looks as easy to sell as to buy and It Is my guess that the major it v of these speculators do not understand the position that short selling places them in. "You Stand tlio IiOss." '"Let us see what happenu. if you gave your broker an order to avH J00 shares o fsome stock nho't, he actually borrows the stock from one o fhis other customers who owns it, or from some othor broker. He actually sells this borrowed stock for you. You put up tho cash to guar antee Its present vulue or a margin deposit to protect your broker, if the stock happens to go MP you arc called on for more margin. If you can't cover it, the broker buys the stock in at the market and returns It to the original owner. You stand the loss. So far short selling pre sents only the dangers aattendlng or dinary marginal buying a few points in the wrong direction and you are wiped out. "It must also be borne In mind, however, that you borrowed tho stock and that you did not borrow it ofr any given time. The owner can call on you at any time for it and you must return it. If your broker can borrow some more for you some where else, all right; but if he jcan't, you must buy tho stock In tho" open market and return it no matter how high its price nor how much cash you httvo to protect your margins. Moreover, if these 1UU shares pay a dividend which you are short ot then you muBt also pay that. - ''"Multiply your own short position by sevoral thousand -and the greatest danger of the practice Is upparcnt. Tho short Interest is very soon larger than the number of shares of the given stock - that - are for sale. Prices ad van co two or three points and a few of the shorts cannot put up the increased margins. Brokers go Into tho market to buy the stock, to return it. The demand raises prices a bit, then there arc more shorts .that are forced tocover. The market strengthens and brokers rush ; in to get tho securities they must re turn behold, there are no more for sale. Prices skyrocket and t hu speculators who were short are wiped out. It is interesting to note here that there is no limit to your losses on a short sale; if you buy a stock at 60 you cannot possibly loso moid than 60 points, but if you sell it short at 50 it may go to 100 or 500 or even to 1000 and you must cover' and stand the loss. Short Interests. "The short interests, for instance, were caught in Htuts in April 11)20. The stock had been selling between inO und 145. Tho moment the short sales exceeded the floating or avail able supply prices started to climb and went to 724. Tho N. Y, Stock Exchange then stepped In but the short interest had to settle at tho rate of $551 a share. The same stock nmy .be had today around lit.. "More recently ho corner in Plgff ly Wlggly has illustrated once more the extremely weak position of the speculator who is short. This stock had been trading between 40 and Hi. The majority of tho short interest probably sold it around 50. When the stuck was called for there wns none to be had. Prices soared and It was taken off tho exchange. Set tlement was finally mado at tho rate o floo a share. "Thnwe sprctuculnr ruses lllustfite our point but do not represent tho great losses resulting from short selling. Millions of dollars are en dangered today on tho short side or the present market,' a growuiK ac cumulation that gets shakier as K piles higher. A rise of three to five points, would start the drive that would practically wipe this interest out. . Moreover, fundamental condi tions do not indicate that busmens has gone to pot. Business is still good. Conditions are against the short sellers and their chincos to win dwindle aa the short Inturout grows. "In fact general business, aa re flected In tho Busbonchart, I still above normal by 4 per cent," con cluded Mr. Bubson, "and will doubt less continue Into 19 14. Therj Is nothing in ono fundamental situa tion to. indicate thut the stock mar ket has reached its top. Short nelhrtg at best is dangerous short soiling against fundamental conditions - Is apt to bo suicidal,' Waldo Stoddard Nominee For 1924 Junior Class Week-End Management COnVALUS, May 19. Waldo Stoddard of 1m. Grande, sopho moro In commerce at Oregon Ag ricultural college, has been nom inated for the office of junior week-end manager of next year's junior class. The meeting wus featured by numerous withdraw als 'and declinations. An amend ment to the constitution provid ing for having class nominations In the future follow student elec tions was passed unanimously by the class Stoddard Is a member of Phi Delta Theta fraternity. Stafford Sadler of Corvallis and Max Turner of Pasadena, Cul., are tho other nominees for junior week end manager. Valor and Hope Winning Back Homes in France 10 U) IF PRESIDENT David S. Beach, Of a "New Party," Has it All Planned Out; belects Cabinet (By Associated Press) SALT I.AKIi CITY, May 19. Da vid S. Beach, of Bridgeport, Cou:i aspires to be president of tho Unit ed States, and Mrs. Beach wants the Job as vice president. He has at- reudy selected his cabinet. In a le: ter received by state authorities hers Mr. Beach stated that he and Mrs. Beach plan to run on the "People's National Independent Corporation ticket," and requested that tho Utah ballots for the 1924 election be nv-ide accordingly. Among tho chief principles of tho new party is tho elimination of isll Btato governments and governing the land under one central government. In anticipation oil occupying tin Whlto House, Beach informed thot Utah state officials that his cabinet llnc-up will bo as follows: secretary of stato, Charles E. Hughes; secre tary or uio treasury, nenry i- orn; secretary of war. General John J. Pershing; secretary of tho navy. Theodore Roosevelt; secretary of commerce, Kobert M. IaKo! let te ; secretary of agriculture, William J5. Borah ; secretary of labor, John J. Davis; secretary of the Inturior, Hi ram Johnson; postmaster general, Josephus Daniels; attorney general, Samuel Untermeyor, Blind Man Sponsors City Beautiful Plans r ' (By Associated Press) ' TOPKKA. Kan., May ID. Tho first campaign Inaugurated by A. 10. Van Paltrn, the newly elected president of the Chamber of Commerce here, who is totally blind, was one for the beau tification of this city. IVsplte the fact that President Van Petten is destined never to look upon the beauties of nature his campaign may bring out, he declares he apprec iates his new honor as president of the local civic body mainly because ll gives him the opportunity to sponsor movement that has always been close to his heart. A systematic organization for beau tifying the city was perfected by Mr. Van Pettcn and includes ward and precinct committees, hrded in each instance by someone vitally Interested In the campaign, and also includes every school child in the city. ANOTHER HEALTH CKANK Louisville Courier-Journal: "I wish .to ret a cocoa nut." "Yes, ma'am. Here's- one that's full of milk." "Rut is it sterilized?" ROAD CONDITIONS IN . EASTERN OREGON According to the weekly report on the conditions of Eastern Oregon Etate highways, by the Oregon State highway commission, the roads in this section are in the following condition: Oregon -Washington Highway Pendleton-Washington State Line: Paved: Pendleton-Pilot Rock: 5 miles good earth road; 10 miles nwcudam. Pilot liock-Vinson: 15:7 miles ma cadam in good condition. Vinson-DuUer Creek-Jone Hill: Hill: County road. Very rough and rocky but pas:-able. Jones Hill-Heppner:: Standard crndo in nrod condition. Hcppner-Gilliam County Line: En tire distance macadamized ana in ex cellent condition. Gilliam County Line-Heppner Junc tion: Fair condition except on tours. Head down Willow creek to Heppnrr Junction is better than cut off at Rhea Siding: careful driving required- Construction work under way. y. Old Oregon Trail East of I'cndMon. Ontario - Huntington - Baker La - PARIS, .April 84 (By Mail). Of devastated Franco, It may be said to day that, due in no small moavwro to tho dogged fortitude and tenacity i itq re turn rd Inhabitant, tho nrvt has rai ry passed the crVs in its recovery from the wounds tuff.'ie.l through mole than four years of aystomatle destruction. Atvo-;h j; to estimates of various i i-coii.-tt motion agencies tho end of next yeur. If ,all goon well, should sus this vast sore in tho side of Kranco practically healed with tho exception of course, of some of tho cathedrals und other historic irtonumeiua ivhtth nevci ci.n be replaced. , Work Progressin;;. A general Idea of how the work is progressing may- bo had from the fact that 653,977 of tho 741,99.1 dwelling; houses which -wero crum bled by cannon have now been com pletely restored. Other forms of re construction are going "forward, and In less than ftvo yearn after the greatest' military struggle tho world has ever seen, more than 4,000,000 of the 6,000,000 terror-stricken peo ple who fled from the German in vader are tmck on the soil they love. and are beginning to catch a glimpse of normal, undisturbed contentment. While the world talks of reparations, ana mo political aspects or itie oc cupation of tho Kuhr, theso weather hardened refugees aro plugging away from sun to sun to restore their cottuges and replant their gar dens. . . Ideal Exists. This Is their one object. True to tho temperament of the average pro vincial Frenchman, theso repatriated men and women want only tho op portunity of remaking homes for themselves; places where they will no longer be patronized as refugees; places where they may till the soil and enjoy ita fruits. They waste no lime dismissing the Ruhr, and ars willing to leave such things to their political leaders if only they them selves may be left unhampered In their efforts to prosper the land which onco formed such a fertile part of Franco. A correspondent of the Associated Press who has mado a tour of tho devastated regions comes away with tho outstanding conviction that, or all tho elements entering Into tho work of reconstruction, tho greatest lactor of all has been and still .u tho sheer will on the part of tho people to restore. Contrast Startling Although there aro still many vi vid signs of war, the con trust be tween tho wartime aspect of the countryside and that of reconstruc tion is startling. Thoro nro great stretches of rolling, sun-kissed fields still bo full of lead and steel and yawning shell holes that cultivation so fur has been Impossible; but there aro even greater stretches which have responded to- tho plow4nrrd""nin" now carpeted with a fuzzy growth of green spring grain. Thoro are mllca of weed-grown hillsides still matted with barbed wire, but there are also great piles of It that have been combed out, particularly from the Chomin-dcs-Damcs region, liko hug's tangled skeins of hair, and are rolled up along the roadsides to rust and ; disintegrate. I Iliisincssi Prevails Everywhere everybody is at work, j Adolescent striplings, who were mora children when the great exodus oc- j u rred a nd who are yet too young ; to do tho heavy work of building, i aro following ox-drawn harrows over the fieldswhile their sturdy, horny-i handed - falhors ure lifting heavy beams .mil stones into place while I heir wrlnhh'd but wiry moljiers r washing clothes, cooking meals and doing other household duties. This metamorphosis from desola tion to reconstruction Is particularly noticeable In cities and .towns that were most: completely destroyed. Montdidier, for example, which bore tho brunt of some of tho most ter rible bombardments of the war, looks utmost liko u now city. Chauny also, tho llttlo village in the So mine which completely disappeared, has boen al most entirely restored. The large chomicat factory thereone of tho 2:',!) 00 that were wiped out la again humming with business and is much more modern and better equipped than the old one. More than 19,000 similar factories In the devastated re gions have been completed. Practic ally everything in the village has been restored, except the church. ThU Is true almost everywhere; the church apparently is tho last thing to be re built. Absoluto necessities must como first. Kheims, Stoissons, Lille and other citlea of that typo are making pro gress, but their destruction was so eolossnl and the amount of debris to be removed was so much greater, that restoration necessarily must bo slow. HIS MOVE Ladies' Home Journal: Willie "Wonlt your pa spank you for stay ing out so late?" Tommy (whosn father is a lawyer) "Naw, Pll get an injunction from ma postponing the spanking and then I'll . appeal to grandma and she'll have it made permanent." Well, anyway, it enabled Europeans to borrow money to carry on their wars. How to Buy Insurance Properly Vacated Means a Policy Voided. Select an agency thut will ad viao you and keep you out of trouble. Jtemeinbor that If you vucuto your property without , notifying tho agent your Insur unco policy will bo void by tho conditions of tho contract. Let This Agency of Tlio II Alt'l I'Oltl) IlltU INSlltANOlO COMPAKY Advise You. Security Insurance Agency ( HAH. II. UKYNOI.DS, Manager. ! la Ornmle - . Oregon I "Insurance WtUi Berries" ; 1 4&J Send the soiled linen HKKK and ; Of 1 l2il 11 ''u l""!ull',t''1 h'-'tter and lust I 'oKer because of our careful meth- I ' tire distance anil in excellent condi tion. Meachatri - Dcadman s I'ass: Ap nroximately five miles new (trade; remainder excellent macadam, iocm inquiry should be made at La Grande or Pendletcn before attcmpsinj? trip over Blue mountains as rains may cause road to be blocked at any time. Dcadman s Pass-raidlcton: excel lent maendam. La Grande-Joseph Highway. La Grande-Island City: Paved. Island City-Alicel: Excellent con dition. Alicel-fmblcr: New grade in fair condition. Imbler-Elgin: Old road over hilli very rouirh but passable. Elirin-Minam-Ixistine: Macadamized and in excellent condition. Ixtine - Enterprise: Under con structieii; turn off at. Wade's cross inir ami take hill road to Enterprise. Enterprise-Joseph: Excellent ma cadam. ' ' Baker-Cornucopia Highway. Bak?r-Halfway: li miles macadam; 21 mile graded roadbed; balance fair countv raad. New grade on low er Powder Jtiver between Love , Bridge and Black Bridge, now open LA GRANDE MAN NOW ENROLLED IN CLASS CORVALLIS. May Ted Hun sen of La Grande, vocational student at Oregon Agricultural college, la ono of the fifteen nion now taking trulu ing at O. A. C. undor tho state In dustrial commission, according to Professor Krnnk II. Shepherd, direc tor vocational rehabilitation. All tho men taking training under this com mission wero partially or totally dis abled and ure bolng trained fdr work to enable thorn to tako their places aguliy In Industry at good salui-les. The men aro nearly all registered In the school of agriculture. A great many of tho courses ure purely voca tional. One Btuiient, It. W. OolT of Forest Grove, has been graduated from pharmacy, and K B. Greono of Portland and JjVlIx Kngllsh of Hnlem expect to be graduated this year In civil engineering. ... "The purpose of the lndustrlul ao cldont luw Is to return victims to In dustrial accidents to tlie Industries, ' suys Mr. Khopluiril. "Tho money for uio. work is derived from u certain sum set aside by employers and em ployes In Industrial linos. For more than th.-co yoara the work has boon carried on successfully In Oregon, wiucn holds tho leudlng place In Uio milieu suites in returning men to re munerative employment." 10 Year Forest Grazing Permits Are Approved Beginning In 1923 a new nollcv Just approved by the secretary of ag riculture will enubto stockmen uslnir tho national forosls to secure ten- yenr permits for growing their stock, In Its own cotintr according to notice just received at the Portland forest service office. A large numbor of tho user ot the na-u' tional forests In Oregon and Wash Ington will qualify for practically all of tholr stock under this new term permit arrangement. The plan will affect approximately a million head of shoep und ovor 200,000 head of cattle und horses, In i those two ' states. ' This period . of assured use Is double that . -heretofore allowed. " The longer torm permit Is being grunted lurgely for the purpose of cnubllng stock men who are depen dent upon national forest rangov to uciior rinanco their operations, for est officials state. It will ulso encour ago bettor management which will I possible under tho certainty of a longer period ot rango uso. A dollar Is not without honor, save y. Wft'A ' '.'I'V-.. )) Conserve 1 '''' 1ff(i Money No Measure 1 Of Value The value of tefqihone service cannot he measured in dollars and cents. No community without telephone service can exist in competi tion with another community that has telephone service. Home Independent Telephone Co. Examine C-T-C Cords Then Make Your Own Driving Tests THE . beautiful, custom-made appear ance of C-T-C Cords immediately ap peals to the experienced motorist. Superior quality is apparent from the heavily fash ioned bead down the specially constructed -aidewalls to the powerful, clean-cut, heav ily buttressed tread. And behind that appearance is a quality in materials and hand-workmanship never before seen in tire building, Then drive C-T-C Cord. ucin 30 less than the usually ftreicribed air pressure for cords, if you care to make rid n more comfortable and to keep down car upkeep ex pense, and' measure mile for mile the lonf -distance performance they will deliver. Rough roads, steep hills and slippery pavements hsld no terrors for C-T-C Cords. Traction and auction are both built in with the specially compounded road-gripping rubber in that massire tread. , t . , ? . ' C-T-C Cords 30x3 Vt to 35xS; Fabrics 30x3 and ,.. 80x3'i only. C-T-C Inner Tubes are the heaviest, ' strongest standard tubes on the market. Harris I'Veneh, llnincli Manager. , 1113 WbsIiIukIoii Avenue, I,ii (iriinilu, Oregon Dealers Throughout u,u County. Columbia Tire Corporation PORTLAND, OREOON - General Sales Offices! Broadway and Burnside. Factory! Columbia Blvd. and Mississippi Ave. Why Rebuilt Franklins j. Offer You Big Value for Your Money Many Franklin owners drive their cars five, six and even ten yjiars. h ; s Some others trade in their Franklins every year or two. The cars which are traded in after one, two or three years use, possess the same performance qualities and durability as the 'ones which remain in the hands of orig inal owners for long periods. They have all 'the unusual characteristics which have made the Franklin famous v air-cooling, which eliminates all radiator trouble; comfort in riding, ease of handling and road-ability which is un- equalled. They are capable of renderng to someone a most satisfactory service for years to come. ... .-; , : j . ' '.: . : .V'5 They possess the economy in. operation for which -. Franklin cars are noted big mileage on gasoline and tires i The used Franklins which we trade in are put in first"' ' ' class condition in our shops. The purchaser of a used : Franklin receives the same attention and courtesy and" service from us that is accorded the buyer of a new car. ; : We have for sale these two models just out of our shop: r. 1919 SEDAN All new tires, new paint, license, upholstery like new. $1350 1919 4-PASSENGER ; , Five wire wheels, all new tires, license, new top and paint A won derful road car for , . ' v ' W. H. Bohnenkamp Go. Grande-Meacham: MucaHwnized en to trallic . j .