Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-11-05
RA|LSARE STRONG;
|NDUSTR|ALS SOFT

NEW YORK, November SpeciaD.
On the stock exchange the proceed
ings were repetition of yesterday.
Numerous weak spots were uncovered
throughout the Industrial list. while
in direct opposition to these declines
there was demand. which AT times
became really eager. for railway
shares.
The high grade. dividend paying
rails. particularly the stocks OF COM
panies which have possibilities like
those of Southern Pacific and Bur
lington. for the distribution of treas
ury assets were favored in the buy
ing.
Northern Pacific and Great North
ern preferred both opened up sharply
on the publication of the tentative
plan for making the surplus in the
Rurlingtn treasury available for the
holders of these stocks
Atchson responded readily to the
reminder that it has oil properties
which might be segregated. Union
Pacific. Canadian Pacific and Reading.
all of which have been mentioned as
valuable interests outside of their road
| bed and equipment. were actively
bought at rising prices.
St Paul moved forward briskly on
the renewal of the discussion which
year regarding the oil possibilities in
the ST. Paul territory. Chesapeake and
Ohio. Kansas City Southern and Rock
Island also showed some special
strength.
Exchange soft.
The markets for foreign exchange.
for wheat. for cotton and for many
of the Industrial stocks continued
. their downward movement stimuli
tN- svr11
down TO the $40 level Italian ex-
change made another new low record.
France sold lower than at amy time
since May. and German marks reached
the lowest for their present move
ment.
The break in cotton options was
violent and indicated that severe as
has been the recent decline the mar
ket has not yet fully measured the
comb ina ton OF large harvest yield
with greatly reduced consumption al
home and abroad
How MELONS" Ripened.
The treasury assets of the Della
ware. Lachawanna and Western. for
which permission was sought to issue
extra capital. consisted of coal prop
critics. In the case of Burlington
it is an accumulation of surplus
earnings over long period of years
which. along with the fact that earn
ing power is obviously far in excess
of capital account that will form the
basis of the appeal for a capital in
crease.
Precisely wha; the Burlington
equity will amount to for share own
ers Of the Northern Pacific and Great
Northern is very hard to gauge.
1t takes the per cent dividend on
Burlington stock to pay the interest
on the joint collateral 4 per cent
bonds. which We're put out at the
ratio to the stock of two to one.
But Burlington earnings even dur
ing the bad times have been running
far ahead of this S per cent require
ment. There have been some years
where the amount earned has run be-
tween $50 and $40 share.
Presumably holders of the Hill
shares are entitled to receive the en-
tire accumulated surplus over and
above the per cent dividend on Bur-
fngton stock. but as the action of
Northern Pacific and Great Northern
preferred in today's market indicated
there was considerable doubt as to
what this would mean when trans
lated into terms of a stock dividend
that is. a dividend paid out of the new
stock to be issued in case the Inter
state Commerce Commission approves
the plan for capital expansion.