Evening star., 1921-10-04
OIL STOCKS LEAD
NEW YORK MARKET
Advance in Prices for Crude
Reflect Unimprovement.
Sugars in Slump.
a nm Nryvrcn,
BY STUART p. WEST.

NEW YORK, October 4.-The most
important incident today affecting
both the general business situation
and the Wall street movement was a
further advance in crude oil prices,
which was followed this time by rails
ing in some localities of quotations
on refined oil. The Pennsylvania dis
trict had been the pioneer last week
in proclaiming the turn. 1t has been
the first to mark up crude prices rs
cents a barrel. Texas and later the
midcontinent field fell into line
Then the Texas producers tackled on
another 25 cents, bringing their scale
up from 81 to $1.50 a barrel.
1t was this second increase which
was followed today by the Pennsyl-
vania operators, and at the same time
gasoline and kerosene prices were
marked up in the Texas district to
correspond to the advance in crude.
This abrupt change in the oil sit
uation within week-a change
which means an increase in the value
of oil on hand of SO per cent-has
taken not only Wall street, but the
whole country by surprise.
1t is more emphatic sign OF trade
recovery than has appeared in any
quarter, with the exception OF the
textile industry and the boot and shoe
business. which turned their corner
six months ago.
That this violent change in oil trade
conditions should have been reflected
very strongly in the mar ket for OIL
securities is not surprising. A 5O
per cent addition to inventory values
in less than weeks time certainly
affords an abundant basis for the
revision of calculations regarding the
worth of this class of stocks. The
oils were again today the most promi-
nent group in the market.
Sugar Stocks Weak.
Their strength was, SO far as the
general list was concerned, however.
counterbalanced by the extreme
weakness in the sugar stocks.
IA Following the reports of impending
even the preferred dividend would be
passed. American Sugar stocks had
another severe plunge downward:
Cuban American made a new low and
so did Manati. The Cuba cane sugars
were bid up sharply early in the day for
the puYpose-so it, is suspected-of Sc
curing a better foundation for further
liquidating sales. At all events, these
stocks broke again later on.
Outside of the developments in the
oil trade and the various cross-currents
of the speculative movement. there was
no great amount of interest in the days
proceedings. The excitement in cotton
dwindled and prices seemed to be steady
ing down, with the same dilema that
there was before the monthly govern
ment report, namely, whether the snort
age in the new seasons supply will be
allowed to show an advance might easily
check opera tioEs at the cotton mills.
The foreign exchanges were generally
firm with the exception of Greek and
Norwegian rates which were quite weak.
III, Of ION ld mi iph
have been the conversion of German
credit incident to the next reparatfons
payment.
A similar thing happened in Spanish
and Dutch exchange when Germany
was preparing to meet the first billion
mark payment Of August 81.
Minneapolis and st. Louis.
Previous to today the low on Min
neapolis and st. Louis stock had been
9. Dropping below this figure. as it
did this morning, seemed to call for
some special explanation, in view OF
the fact that other rails We're strong.
The only apparent reason for the
weakness in Minneapolis and St Louis
lies in it's earnings position. For each
month, from January to July inclus-
i've, the company reported an operat-
ing deficit. In August this was
changed into an operating income OF
$132,134. The point is, however. that
this was very small return on the
big gross earnings of $1.500,62S. Au-
gust being the month of heavy grain
traffic, this gross revenue must be re-
Garded as rather exceptional, and 1t
is this that makes the meager total
of net income particularly disappoint-
ing. Even with the August result
reckoned in. the road lost $6S1,07
during the first eight months of 1921.
Missouri Pacific.
Missouri Pacific preferred was bid
up sharply and was responsible for
moderate revival of interest in the
railway shares generally. The street
has been quite bullish on this stock
for some time, because of the marked
Improvement in the earnings of the
company. But there does not appear
to be any basis for the talk of a
dividend.