Evening star., 1921-12-06
MOTORS ARE FIRM
IN A SLOW MARKET
SpeciaIties Interesting il
Their Action and Outlook.
>. Exchange Higher.
BY STUART p. WEST.

l NEW YORK, December 6.-Ine
stock market today was less active
| and interest narrowed down to
dozen or so Individual stocks, while
i the rest of the list was comparatively
neglected.
These speciality movements We're
nearly all upward.
Motor stocks and the rubber and
tire shares were the favorites. and
the leaders of these groups. like
Overland preferred, United States
Rubber and Goodrich, all went
through their previous high points
for the present swing
The principal significance attaching
to the move in the motors and re-
lated stocks was that it went ahead
despite reports that the motor COM
panies are not as busy as they were
in the early autumn. This is merely
another illustration, among many that
the stock market is not Interested So
; much in immediate trade conditions
the forecast for next year for the
automobile business is altogether Up-
timistic.
Action I'm Exchange.
German marks were prompt to re-
spond to the report over the morning
cables that Germany might be al
lowed three years grace in it's cash
payments upon reparations account.
This story came as surprise in
view of the supposed opposition of
France to any proposal to concede
anything at all in the matter. The
suggestion was that in return for
Frances yielding on this point Great
Britain and Belgium would be ready
to turn over some of the billion mark
Loo E,t
cording to the original agreement, the
French are not to share. The mark
had closed last night at .0O44. 1t sold
this morning as high as .0056.
French francs at the same time
continued their recovery, which now
amounts to over half cent in little
more than a week. They sold today
at the highest in three months. This
! is sufficient proof that whatever
! modification may be made in the mode
of German indemnity payments will
not be prejudicial to the financial po-
, sition of France.
Sterling rose to 400. new high.
Lehigh Valley. :
The action of Lehigh Valley in the
stock market gives every indication
that some new and favorable an
nouncement regarding the company's
coal property segregation plan is
about to be made. The plan, as an
nounced by the Lehigh Valley several
months ago. met with federal objec-
ton, but the belief is general that the
rough spots are being smoothed out
and the way set for the melon cut
ting. Under the segregatr,n plan. as
it was first made public, the railroad
would receive preferred dividends of
S2.1OO,0O0 annually, or practically the
average of the amounts received in
dividends from the Lehigh Valley
Coal Company and Cox Brothers for
the three-year period, 1911-19l9. Last
year, in anticipation Of segregating.
the coal properties paid dividends
amounting to S15.532.000. AS a result
strong cash position and has been
able to make heavy charges to main
tenance.
Heavy Selling OF st. Paul.
The heavy selling of ST. Paul stocks
yesterday and again today has nat
urally started discussion as to the
ability of the road to coyer interest
payments. There can scarcely be
much doubt that such deficiency as
there was would be made up by bor-
rowing. if necessary. But, in the
meantime. the fact is that st. Paul
is not earning it's fixed charges. At
the present rate 1T would only earn
55 per cent of them during the twelve
calendar months of 1921, while even
under the new regime-that is, the
fiscal year ending June 80, 1922-it
would be earning 95 per cent. The in
crease in net operating income from
$2.3s2,000 in September to $2.510.0OO
in October was less than the seasonal
gain called for. Under these circum-
stances the ST. Paul stocks are made
to look quite unattractive from a
speculative standpoint. to say nothing
of their attractiN as investments.
Pennsylvania soft.
Pennsylvania sold below 81 for the
first time since last spring, when it
reached 32A This selling reflected
the anticipation of further unfavor-
able action on the dividend, in view
of the fact that the road. even with
the change for the better since the 1st
lof July. can scarcely be said to be
towering it's fixed charges.