Evening star., 1922-10-03
LSLEAD TRADE
ON WALL STREET
Standard Oils Set the Pace.
Rails and Food Shares
Strong.
by STUART p. WEST.

NEW YORK, October 3.-With the
Immediate opening the oil shares started
a rally that for a time monopolized the
attention of spectators. Yesterday and
for some time there have been strong
tips out on Standard Oil of California
and the response came in a 4-polm
rally to a new high Immediately
the other Star dard Oil stocks. of In
diana, New Jersey. and other states
On the curb the parent Standard Oil
of New York advanced IS points net.
opening at 365, a lO-point gain. and
then adding the bali nee to o13.
Gains of to 2i2 points were regis
tered by Standard Oil Of New Jersey,
Mexican Petroleum. Associated oils.
etc. with the advance reflected in lesser
degree among other oils.
Rails Also FirM,.
Rails too. came to the front in moder-
ate improvements as 10 values, New
York Chicago and St Louis preferred
advancing 2 points. while Lackawanna
duplicated it's high of the year with
The same gain.
Other rails were strong from fractions
to half-pointS.
National Biscuit scored another i l2
point advance and LooSe-Wiles pa in
sympathy.
Pubic Utility and Equipment shares
all scored gains. American Express
gaining 4 points.
Whether or no: today'S upturn in
variety of selected stocks implied
resumption of the movement which
eliminated soon after Labor day.
was still an open question. But there
was no reason why the market. hav-
ing taken a favorable view of outside
surroundings up to month ago.
should feel in any different frame OF
mind now.
During this past month the labor
Controversies have been disposed OF.
The autumn crop movement has got
we'll along without anything to arouse
misgivings that Wall street will have
to he cut down in its credit supply or
will have to pay materially higher
rates The steel t..ade has risen from
a so to ,5 per cent production and
the anticipated rush of traffic has be-
gun over the railroads. with the Ger
tainty that it will pile up unusual
earnings for the transportation COM
panies during the coming months.
In word. the outside situation. so
far from being any less hopeful than
it was at the start of September. is
distinctly better.
The sharp jump in Delaware, Lack
awanna and Western today followed
the windup of the liquidation of a
large block of stock. This stock. it
is believed. came from insurance COM
panies obliged under the law to get
rid Of speculative securities within
certain time limit Absorption of
this block having been completed.
plans for another melon cutting are
reported in progress.
The extra distribution to stock
holders probably will take the form
of dividend in Glen Alden bonds. of
which Lackawana holds in its treas
ury. s6".o0o.ooo. In addition to these
bonds H.. l.. & w. is also rich in
cash and other securities to the total
of S65.OU0.Gu0.
Strength In Rails.
The whole advance in the railway
list today seemed to hang around
D.. l.. x w. rise of which served to
call attention to the favorable out
look for coal company earnings dur
ing the next few months.
This provided the motive for the
upturn in Reading. Norfolk and
Western and c. d o.
Lehish Valley and E. & o. followed.
but at more moderate pace. Great
Northern preferred was again bought
a speculative investment.
Pere Marquette made good re-
sponSe to the analysis of the roads
earnings, suggesting between Sc and
81 share for the current year. Rock
Island showed the effects of the re-
accumulation around and just below
43 Of important speculative holdings
distributed on the rise to so. The
same sort of absorption occurred in
New Haven around 29 and the stock
gave evidence of this today
The. New York stock market. beyond
expressing satisfaction that the threat
of trouble in Europe had been very
much diminished, was plainly interested
much more in other matters 1t took up
the operations in Specia! stocks where
these had been interrupted by the gen.
eral market reaction which started
fortnight ago. The evident meaning of
this was that, according to expert judg-
ncut. this reaction had been sufficiently
thorough had fulfilled it's purpose of
eliminating such weakness as had crept
into the Wall Street situation during the
summer campaign and had rendered the
position comparatively strong again.
The notion that Mondays advance
had been nothing more than the
hasty dispersal OF a short interest
was disproved. Such upward move
ments as occurred today in the Stand
ard Oil stocks. among the industrials.
and in the anthracite shares and
shares of the northwestern carriers
among the rails could not be ascribed
in any degree at all to mere short
covering"
Consolidation of the express COM
panies is one of the things which is
looked for in the near future. 1t was
learned today that probably the first
Of these mergers will link Adams
with American Express. The price at
which Adams will be taken over is
reported to be above 500. With this
merger completed the domestic bank
ing business of the two concerns will
he sold to a syndicate and the for
eign banking business of the Ameri-
can Express. which is quite a profit
able enterprise. will be segregated.
Then the stockholders will come in
for siZable melon cutting.