Evening star., 1921-09-09
EQU|PMENT.S LEAD
RALLY IN SHARES
After Bear Attempts for Re-
action Market Again Be-
comes Fairly Firm.
BY STUART r. WEST.

NEW YORK. September s.-There
vas an interesting test in all the
| markets today. In cotton 1t was a
question whether the 800 to $50 point
decline between Wednesday and
Thursday night meant that the up
ward movement had been very much
overdone or whether 1t could be re-
lied upon as indicating a lasting
change, both in the cotton trade and
!! In the business outlook for the south.
In grain 1t was a question what the
response would be to the government,
report. published after business hours
yesterday.
J In stocks the point to be settled was
whether the downward turn Of tn.
previous DAY was to run into an iIE
portant decline or whether it .vas
SIMPLY normal reaction in a market
whlch has permanently set it's fac,
toward better things.
Sentiment Better.
The answer to all this was a brisk
snarp decline grain al the sta /.
followed by slump and then re-
covery, and resumption of the rise
IN STOCKS, with what was altogether the
most impressive and convincing exhibi-
ton Of an altered sentiment given since
the turn came a fortnight ago.
The upward movement began in the
copper group as the result of the
uniooked-for declaration of a divi-
dend by Utah copper. and the i'm
mas occurred within he last week.
The advances quickly spread to
other groups. Baldwin Locomotive.
American Locomotive. American Car
and f'a undry. and the other equipmen:
were eagerly. bought on be!ated
recognition that speculative Wall
street has entirely underestimated
the earnings Of these companies SO
far this year and has not taken
the proper account of their very
strong financial position. With the
equipment group selling at the best
prices in months. a following was
readily attracted to the steels. to
Studebaker and to numerous other
industrials in which initiative was
shown.
The Days Developments.
Cities Service Company announces
that as of August Is. when the books
were closed. the corporation had so.
900 shareholders. A larger distribu-
tion of the various securities of the
company az to the number Of share
holders was announced.
Lehigh Valley Coal Sales Company de-
payable October I, books closing Sep
tember Is.
American Sumatra showed cash as
per balance sheet of July /. $1.071.-
S93. as compared with $1.913,636 in
the July 81, 1920. balance, show
ing. inventories. $3.127.077. as against
s1,S62.497. Liabilities have increased
to $50. 023.000, as compared with $685.
100000.
creased S11,5s5.749. taxes increased
s5.729.S56. net operating income in
creased s5.207,394; for seven months
gross increased $3,780,065 and net
operating income increased $685.
2i2.
Equipments Take the Lead.
The borrowing demand for stocks
was very light, indicating a big reduc-
ton in the short interest. After some
irregularity, during which National
Cloak and Suit shares were off 5A
points on two transactions, when
some of the rails and food and chemi-
cal shares were singled out for fu-
rther raids. the equipments came to
the front with considerable show of
strength.
Northern Pacific, Sugar and Ameri-
can Drug were among the early
weaklings.
At midday Continental Can fell 3
points on the passing of the divi-
dend.
After this the balance of the list
strengthened, American and Bald
win Locomotive and Pressed Steel
Car leading with Pressed Steel Car
and Railway Steel Spring.
Motors and oils shares in the bet
terment