Evening star., 1921-12-17
RA|[WAYISSUES
LEAD THE MARKET
IndustriaIs Generally React
After Steady Advancing
Trend.
BY STUART p. WEST.

NEW YORK, December 17.-Indus-
trial stocks. as q rule. went lower in
the market this morning. Their de-
cline of a point or SO had no signifl-
canoe beyond the customary realizing
sales at the close Of a week of rising
prices.
There was no news to account for
the movement. 1t did not imply any
change in sentiment.
While recent favorites like the
equipments. the steels, the oils and
the ooppers were falling away. rail-
way shares which had previously
been doing very little, were taken up.
The report Of an impending extra
dividend on Delaware, Lackawanna &
Western made this stock the leader
In the railway group. Atchison made
a new high for the year and its special
strength seemed to suggest an in
crease in dividends. certainly war
The first Of the November traffic
statements-that Of Kansas City
Southern-disclosed an expected re-
suit. There was more than seasonal
falling off when comparison was made
with the October figures.
The explanation lay in the fact that
October was unduly stimulated by
the fear Of a strike and that conse-
quently some Of the traffic which
would ordinarily have fallen in the
November movement, went to swell
the October totals. However. the
itself. with It's net operating income
of $269,6S5. only $S2,236 below the
same month last year. is satisfactory.
Exchange Strong.
Both sterling and continental ex-
change were strong, showing that
yesterdays decline had no great
meaning so far as the latest develop
ments in the German reparation sit
uation was concerned.
American Sugar stocks were partic-
ularly weak on the revival of last au
tumn's rumors of a new financial plan.
These rumors were denied at the time.
but it was not disputed that financing
might have to be done later on.
American Linseed stocks were very
strong and so was Royal Dutch, but
there were no new reasons in either
case.
Atkinson Rail Leader.
Atchison is selling SO far out Of line
with most of the other rails-that is.
so much above the average on the
comparison of interest return-that
its starting up in what is apparently
q fresh upward move seems very sig
nificant. 1t could not well be justi-
increased dividend. unless such an in
crease is entirely reasonable. as any
examination of Atchison's earnings
position will readily show. Atchison is
earning between { and 9 per cent on
its property value as against per
cent allowed by the transportation act.
1t must therefore, have to pay large
ly into the federal Treasury under
the requirement that on everything
over per cent one half must go to
the government. But even with this
allowance Atchison is now earning
what 1t is distributing in dividends.
Kansas City Southern
Kansas City Southern is the first
Of the railroads to publish its No
vember report. AS was expected,
gross earnings show a decrease of
$325.797 over the same month a year
ago, and operating income dropped
$S2.2se. Compared with October.
net loss Of .se.14o. November nor.
mally is a month of smaller gross and
net earnings than October. but the
falling of is greater than the sea-
sonal average. The only effect of the
decrease in the case Of Kansas City
Southern Is to lessen the amount
aside for the government and q re-
serve fund. The road Is earning we'll
over s per cent on property value
allowed.
Ajax Rubber.
b The reason for the weakness in
Ajax Rubber on recent days was
fully explained by the announcement
that the company had sold $3,00O,O0O
ffteen-year 8 per cent notes, and that
an additional issue Of 5000, 900 shares
of common stock Is contemplated.
This stock will be offered to present
shareholders at $3.50 a share. All
of this financing follows story that
such thing was in the wind, but
which was denied just as often as 1t
appeared