Evening star., 1921-08-09
Trading in STOCKS
NEAR STAGNAT|0N
Broader Demand for Rails,
But Trend Is Down.
ward.
BY STUART p. WEST.

NEW YORK, August 9.-To say
that today's stock market sunk below
even yesterdays diminutive total OF
business was to tell pretty much the
whole story of what happened. 1t
was about as near a state of abso-
lutte stagnation as a speculative move
mefit ever reaches. For the greatest
Iart of the time prices simply dritted
without any tendency either way.
American Locomotive lost part OF
yesterdays gain because the favor
able showing for earnings Tor the
half year was counterbalanceo Dy
the slender volume of untitled orders
on hand. Railway stocks rose a bit
further at the start, but later sub
sided The marked improvement In
the earnings for June and July and
the prospect of much better returns
still, with the 12 per cent wage reduc-
I ion in effect, was sufficient eXplana-
ton for the recent strength in the
rails, without the other and more
widely advertised reason-namely. the
project for paying off the residue OF
the government debt under the war
time guarantee. The obvious fact that
the transportation industry has
turned sharply for the better is the
most hopeful feature of the entire
business situation at the moment.
Exchange Center of Interest.
After yesterdays. sensational rise
In the exchanges, this market
was naturally the center of inter-
est again today. Before the open
ing of business sterling had fallen
3 cents in the pound, and this decline.
begun on initiative from abroad. was
largely increased when operations
were started on this side.
The promptness and rapidity of the
reaction bore out the best judgment
haN
were a hurried covering movement in
an overSold speculative market rather
than the result of German indemnity
transactions or any other outside
cause.
The report that Germany was buy
ing up sterling exchange, to complete
additional payment on the billion
mark installment of the reparatlons
money was interesting and plausible
enough on the face of things. Bat.
after all. it was nothing more than
rUmor, brought forth by a swiftly rls-
ing market, which found no confirma-
tion in authoritative banking quarters.
Follows Speculative Market.
The exchange today followed the
usual course of speculative market
after heavy short interest had been
driven in. Little more was said about
Herman buying Of sterling drafts or
about the possible withdrawal of funds
deposited by German agents in New
York to the credit of Great Britain and
France.
As an explanation for the upturn this
second suggestion was rather thought
less. The motive which led the English
and French governments to establish
but of the first reparationS money an
account at the New York Federal Re-
serve Bank was obviously a desire to
Increase credit balances available for use
n this country. That the intention was
to open this fund in June and draw it
down in August is quite inconceivable.
Famous Players Surprises
Famous Players directors were sched-
fed to meet last week to take action
Dn the dividend on the common stock,
but at the last moment ii was announced
hat the meeting was postponed because
here was no quorum. In cases OF this
kind heretofore it has been the custom
o begin selling However, this did
not occur in the case of Famous Play
Ars. as the stock advanced instead of
rclinng and the preferred had a notable
Use. II is well known that Famous
layers has been and continues to be
,g money maker. but the company has
crown to such large proportions that it
must conserve all the cash it can get
IS hands on.
For every month so far this year
kansas City Southern has shown some-
thing earned for the common stock.
kIonthly proportion of fixed charges and
preferred dividends is roughly S25O,000.
while earnings have been running well
above S350.000. April gross of 81 1,S65, ,93o
reported was an increase of 21 per cent
bver the same month last year, Al per
cent over April. 1919. and 36 per cent
bver April, 1918 Gross for the first
bf the same period last year and over
A5 per cent for both the preceding years.
Worthington Pump Prospects.
Although Worthington Pump is
booking very little new business
these days and is operating at greatly
reduced capacity, it is said that the
next dividend at least on the common
stock will be paid. To do this it will
be necessary to draw upon surplus.
bt is hoped that business will pick
up in the closing months of the year,
lhus allowing the dividend to be con-
nued. Worthington earned only
k2T3.000 in 1919 after payments on the
profit and loss surplus on December
81 of s4.625.734. besides a general
reserve of S5.e00,0O0 set up during
he prosperous times from 1917
through 1919.
American Locomotive had dis
ounted whatever good effects lay in
lhe semi-annual statement, and the
took sold off sharply. The earnings
# $12.10 a share. or more than twice
he dividend requirements for full
year, were. of course, very salts
factory.
So was the reduction in inventory
rom SIS. $4,000 at the end Of Decem-
ber to $6,555,D00 at the end of June.
But untitled orders of S4,596,000 were
Eery small and the declaration by
he president that it was difficult to
forecast the businesses of the next six
o twelve months was not exactly in
bpiring.
Pacific OIL Cuts.
In the case of Pacific Oil. the
market paid less attention to the
;ood showing in the six months re-
,ort of the company than it did to
he announcement that prices of gas
line and crude oil in the California
istrict had been cut heavily to con-
orm to the reduced quotations in
ther sections of the country. These
uts followed the reduction of 25
ents a barrel in California crude oil.
which was made week ago, and
oreShadow a heavy increase in
harges for depreciation during the
urrent quarter and probably during
he whole of the second half year.
he profits for the first six months
mounted TO S2.S5 share on Pacific
iii stock, but it is a question whether
it'll the new price scale there will
{. any considerable addition to these
arnings during the second six