The Birmingham age-herald., 1912-01-26
TRADING ACTIVE IN
 EARLY PART OF DAY
Tone Distinctly Stronger,
 Trading Heaviest in Lead ing Railroad Stocks

New York, January 25.-With no ap- parent reason for a change in the course Of the stock market today, the tone be- came distinctly stronger. In the early art of the day trading was active and prices rose briskly until many stocks were established on a level of point or more sLove yesterday close. The latter half of the session was dull The market idly awaited word as to the action of the St. Paul directors in regard to the dividend rate, which came just after the close. The improvement in prices was well maintained. In the last few minutes there was a sudden outburst of activity principally ill St. Paul and Reading, bota of which sold off abruptly.
 Trading was heaviest in the leading railroad stocks, although there was better inquiry for some of the indus trials. Union Pacific showed more strength than for several days ana tne action of that stock as well as several other prominent issues suggested thu. short covering was largely responsible lor the upward course of prices.
 The action of St Paul, which rose point early in the day, exerted strength ening influence upon the railroad llst. Although the street was well satisfied that the St. Paul directors would reduce the dividend rate from ' to per cent, there remained an element of uncertainty until word was received from the board room that the expected reduction had been ordered While the earnings of the road have fallen considerably short of intao bn nov cent rate, the drain upon the company's g resources has been largely an account O. the extension of the system to the Pa- cific, so that todays change in rate does not necessarily imply that similar action may be expected by other western roads.
 Indications that earnings of the west ern lines have been comparatively poor during recent weeks were borne out by the December statement of Atchison, the first of the large western roads to report for last month. Cross earnings fell off S4oo,O0 although a reduction in operating expenses limited the decline in net to half that amount. The outlook for January is rot bright. Railroad officials said that weather conditions in the first three weeks of this month were more unfayorable than was generally recognized.
 Foreign exchange rates rose sharply to- day. Demand sterling touched $4.S7is, the highest point since May of 1910, when gold was Icing shipped to London in con sequence of the disturbance over the death of King Edward. No cause was assigned for the rise other than the in tiUenees which have been in evidence for some time. The continued abundance of funds here resulted in the placing of further loans abroad, with resultant in quiry for foreign bills. London today was offering 1 per cent better than local rates for money. Arrangements for the new German loaus, which will be. offered pub. licly on Monday, also were a factor in the foreign exchange market. ' American Tobacco common was taken lover today from the .tcurb'' to the stock SNxchange Opening at 250, unchanged from the last sals in the outside market, i1 rose to 2611z The fertilizers were strong. with buying based upon the in- creased business and the decline in the price of cotton seed.
 There was no dimfnution of the demand for bonds, which has been the important feature of the investment situation re- gently. Prices of bonds were firm with higher quotations for most of the popular issues
 Burlington joint As and Interbarough- Metropolitan 4ihs were heavy. Total sales, par value, s5772,000. United States 2s coupon declined F and the As A on call.