Evening star., 1921-08-02
H|GH-GRADER RAILS
FEATURE MARKET

ftAlURt MARkEl
Trading on the stock exchange to-
day was delayed three hours by \ hre
which was cnused by faulty tnsuia-
tion of wires In the stock EXCHANGE
annex. now under construction. This
affected the annuncistOr mechanism
by which the trades are dispatched TO
the tfckers. The exchange met at ~
Am. but Immediately adjourned to II
and then rendj0urned to 1 p.m, when
trading was begun.
BY STUART p. WEST.
NEW FORK. August When
trading was resumed for a.. Two
change today. after a delay until |
o'clock because of fire which caused
more inconvenience than 1t did dam
age, the market showed a generally
Arm tone, which later developed into
some irregularity.
The high-grade rails. especially the
shares of the Hill roads. were strong.
Northern Pacific selling up to new
high for the month. The steels also.
led by Bethlehem Steel B, maintained
the gains of yesterday and in some
cases improved on them.
There was no reason to believe that
anything else than the technical posi-
tion was responsible, the trade situa-
tion remaining as uncertain and con-
fused as heretofore, which uncertain
ty and confusion apparently are shared
by the speculative community.
Motor stocks were soft and gas
stocks strong. Call money renewed at
per cent. the rate later rising to 5h
Hide and Leather Profits.
The second quarter report Of the
American Hide and Leather Company,
covering operations for the three months
ended June 80, were about as antici-
pated. Surplus after charges and taxes
amounted to $251, ,644, equal to 81 a share
ON the 125.4S3 shares of preferred stock,
compared with a. deficit OF over $1,000
600 in the first quarter Of 1921 and a
deficit Of approximately 100000 In the
corresponding period last year. For the
half year the deficit was $685. after
taxes and charges, compared with
deficit of $572.563 in the first six months
last year The change in the hide and
leather position is due TO the turn for
the better in the industry.
Latest reports from the Lee Rubber
Company are that the company Is
operating at 100 per cent capacity,
turning out 1000 tires a day and is
considerably behind on it's orders. For
the first half-year earnings, after all
charges and taxes, were approximate
ly $25O,0O0, or $1.66 a share on the
10000 shares of no-par stock. 1t is
fully expected that, even should
ings will exceed last years profits of
$3z6.63S, or s2.1s a share, and at
least equal the record showing of
1919, when net profits were $471,S06.
Middle States OIL Plans.
The Middle States Oil plan of increas-
ing the interest in the new s per cent
United Oil Producers Corporation
first lien bonds which it Is offering to
it's stockholders and also the holders
of Imperial OIL stock with any ad-
vance in the selling price of oil. is a
interest on the bonds is guaranteed
by both of these companies with oil
selling at SS S-9 cents a barrel, but
should the price of oil climb the in
terest also climbs.
In the circular sent out, it is stated
that If Mid-Continent Oil sells at 81
a barrel the interest on the bonds will
be 8 per cent and so on until oil sells
at $2.25 a barrel At this figure the
interest rate on the bonds would be
20K per cent. The United Oil Pro-
ducers Corporation has a settled pro-
duction of 5000 barrels daily.
Cotton futures opened with some
decline after the sharp advance fol-
lowing the publication yesterday of
the government report, which was SO
important question remains unan-
answered as yet: What will be the
effect on the mills? Spot markets
were Influenced to some extent at
once, and 1t naturally would be sup
posed that the prospect Of rising
prices would have the usual result
on impending buyers. All this Is a
matter for the future. Meanwhile
the outlook. commercially and fnan-
cially. in, the hard-pressed south is at
least not any worse.
The situation abroad with regard to
cotton is the same as that in grain, sugar
and other commodities. Needs must be
cut down to the measure Of ability to
pay.
More important still Is the foreign ex-
change factor. As the managing director
Of the War Finance Corporation points
out. fluctuations In exchange during the
past year were greater than the present
fluctuations in cotton. 1t seems safer to
the foreigner to take a chance on cotton
prices rather than on exchange.
Study Of the June railroad reports
show a curiously spotted situation. Prog
ress has not been SO uniformly favorable
as in May. Probable deductions are of
little value until the effect Of the wage
cuts are shown in the July returns And,
underlying everything, there remains the
Industrial depression. While the railroad
situation is distinctly better than a few
months ago. unrestrained optimism is not