Evening star., 1922-08-31
ALTON SECURITIES
ARE MUCH LOWER
BY STUART p. WEST.

announcement of the Chicago and Alton
receivership was followed by renewed
collapse in the bonds and stocks of
the company. This brought about
some scattered selling in other rail-
way shares, particularly In certain Of
the low-priced non-divident payers.
The news had little effect on the
market generally, because 1t was fully
realized that the Alton was special
case, that 1t had no significance for
the railway situation in the main.
No doubt as the accompanying state
ment in explanation said. loss of
revenues through the coal and rail
strikes was an immediate cause Of the
troubles of the road. But this only
served to bring matters to a head.
The outstanding fact that has been
known all along is that Atoms
capital account is excessive in COM
parison with earning power even at
the best. y
Panic In Alton Securities.
Chicago and Alton preferred. which
closed Wednesday at 9k, and the
common at SIS, opened today at 5000
preferred at 4 and 5000 common at 3.
The preferred then had small rally.
but the common sold as low as 21s.
Meanwhile. the 3h per cent first lien
IL
pared with 40, yesterdays close. These
further violent breaks showed that
while Wall street, after Wednesday, S
decline. had been looking for trou-
bic. it was not fully prepared for the
receivership announcement. Regard
less of the explanatory statement. en-
phasizing losses from the strikes. the
real reason. it was felt. lay in the
piling up Of defaulted coupons upon
the $l6.000.000 general mortgage s
per cent bonds.
Special Issues Strong.
A number of specialties. mainly in
the industrial list, were taken up at
one time or another. California Pc
troleum responded to the revived re-
high as 81 share. Loose-Wfles had
another sharp run up on calculations
that the way present earnings are 60
ing the dividend arrears on the second
preferred will be cleared up and the
road left open for payments on the
common. Pittsburgh Coal crossed 20
on word that the company had signed
the agreement which will mean the
reopening of its mines.
Canadian Pacific.
The advance in Canadian Pacific is
set down by houses with London con-
nections to buying for London ac-
count. London is also said to be buy
ing Chicago and Northwestern. IL is
well known that London during the
war. sold most Of its American stocks
and is now buying back.
Foreign Exchange.
Another downward turn in the foreign
the recovery at the start of the week in
francs and marks was due to the closing
in of part of much-extended short DO
sition and did not mean any change in
the situation Itself. The impression that
feeling In banking circles was more
ratfons was either never warranted or
has been destroyed by developments
within the last day or two
The decision Of the reparations COM
mission is now rather expected to be
unfavorable to Germany's request for
a moratorium. or. If it is not, then the
idea is that France will ignore the ver-
dict and carry out her threat to collect
the indemnity alone
that the European financial situation
1t was hard TO detect any evidence
was factor in our security markets
today.
Some rather notable losses occurred in
few of the minor rails, obviously an
effect of the Alton incident.
Rubber and tire stock, for specific
trade reasons long understood, were Of
fered down and realizing sales made
theselves felt.
Mexican Petroleum had one of it's
characteristic jumps in the afternoon
trading for no other reason than that
the speculative element was looking
for new leaders and 1t was the turn
of the Mexican oils.
Equipments Firm.
Coal shares were strong. anticipat-
ing formal word that the anthracite
strike had been settled
oil 1xry{~
connective and other railway equip
ments were actively bought in the
final hour at new high prices for the
year. There was nothing new in con-
nection with any Of these moves.
They simply bore witness to the con-
troll which large market interests,
working for the rise, have over the
current Wall street situation.