Evening star., 1921-11-28
BONDS AND RAILS
!. LEAD IN TRADING
Investment Demand Respon-
i sible for Strength in
Dividend Payers.
BY STUART r. WEST.

NEW YORK, November 2s.-The
seasons high prices were surpassed
again today, both in bonds and In
stocks.
There were not as many features In
the bond list as there had been on the
average day last week. but there was
not the slightest sign of slackening
In the demand for investments.
Victory bonds sold for the first time
IN a full lot at par. The rest of the
onlted states war group continued to
work higher. and so did many Of the
Ioreign government issues. which still
oner high return measured by the
standards of two months ago.
on the stock exchange the invest
ment factor was Of much more conse-
Dtvident-paying rails led the upward
way and here there was no question
that the buying was coming largely
from investment sources. which had
missed the rise in the bond market.
October traffic statements are
scarcely fair picture of the railway
situation, so far as gross business is
concerned, because they covered the
period when grain shipments were at
their maximum. Still the important
point is that the roads have shown in
October, no less than in the previous
penses well under control
Reduction In operating costs has not
been enough in the case of a number
OF the weaker roads to put them In q
safe position. But with most Of the
stronger carriers it has been suf-
ncient to assure the maintenance of
dividends, even with the volume of
business offered no greater than 1t
is. and this is the essential considera-
uon from the Investment standpoint.
Rails Move Up Again..
One after another the standard
Fails pushed through the seasons
high. Union Pacific above 100, Cana
dian Pacific above 120, Southern Pa
cific at 50. Atchison around 80. and
Northern Pacific crossing its former
high of S0A-these were the leaders.
The recent buying in Northern Pa
cific and Great Northern preferred
has been founded on the belief that
the Burlington dividend will be sub
stantially increased and that enough
extra will thereby be brought into
the treasures of the two allied roads
TO assure the maintenance of the Z
per cent dividends.
Even at present prices Northern
Pacific and Great Northern preferred
are quite out of line as 7 per cent
stocks. If this rate of distribution can
be regarded as permanent.
Investment buying was largely re-
sponsible for this movemSnt in the
rails. as was indicated by the fact
that it was the dividsnd-paying is
sues that were in demand.
Industrials Irregular.
Industrial stocks were more irreg-
ular than the rails, but still there
were few instances where at one
stage or another prices did not go
higher. The special strength Of Amer
lean Car and Foundry. Baldwin Loco
motive. SPressed Steel Car and other
members Of the group were evidently
further recognition that the railroads
which have been skimping for the last
three years in their purchases of
equipment are beginning to place
their orders, The railway attitude
has been influenced by thSstate of the
investment market. which will render
il possible, without the aid of any
action by Congress, to raise money
for the funding of past expenditures
and for the purchase of new supplies.
1t was perhaps worthy of note that
United States Steel common should
upward movement without drawing
with it the stocks OF the independent
steel companies.
Steel common which had gone
through s3S on Saturday, its previous
high for the autumn, opened with
flourish this morning at "a and soon
got well across that figure.
Baldwin Locomotive also broke into
new high ground as 1t crossed 97h.
The contention of those who have
been talking reaction all this month
has been that the general run Of
stocks was not making any headway
and that while numerous specialties
were rising they were being put up
to facilitate distribution elsewhere.