Evening star., 1922-12-15
GERMAN LOAN TALK
FACTOR IN MARKET.
Boost to Copper Industry
Foreseen-U. S. Steel and
C. & O. Strong.
BY STUART r. WEST.

Special Dispatch to The Star.
NEW YORK, December 15.-The
principal point of interest In the
financial situation today was the re-
action OF the markets to the over
in which America will assume the
initiative.
This report had its effect very
promptly upon German marks. which.
having hung for over month at
.00lA rose approximately to .001k
French francs were still more re-
sponsive. selling we'll above the .O7sO
cents. as against the low of .06s5A
a week ago.
Loan Talk Helps Coppers.
On the stock market Of the day the
German loan story had some influence
upon the shares of copper smelling
companies to which the restoration of
German buying power would mean
great deal In the way of new busi-
be set down as the reason for the
strength in the s'eel stocks. which
was the other outstanding incident
Of the day. Here the explanation was
threefold-tHe revival of the rumor
which did service two months ago of
United States Steel common stock.
the fact that steel and iron produc
ton is holding close to maximum.
whereas. ordinarily on the approach
Of the holidays there is lull. and
finally the presence of short inter-
stand its ground.
Chesapenke and Ohio Jumps.
The report that the Van Sweringen
nj
Chesapeake and Ohio was confirmed
by Chesapeake and Ohio officials. who
admitted that the Cleveland people
had conferred with them. The over
night news regarded the effort to
link the important eastern road with
the Nickel plate. Lake Erie and
Western and Toledo. st. Louis and
Western brought a rush of buying
orders into Chesapeake. Opening at
SOS, point and a half above the
Thursday close, 1t moved up to Tx
before much stock was offered for
sale.
Phillips Petroleum Lower.
Phillips Petroleum stock. selling
ex dividend. continued to decline on
intima tionS that the company con-
templated some new financing. Ru-
mo- to that effect have persisted. de-
spite the fact that people particular
ly interested in the situation see no
basis for such action. The company
has outstanding about 100000 shares
of stock and its funded debt amounts
to s3.500.0O0. Bank loans are report
ed to aggregate about $4.000.O0O. Net
operating income before taxes and
deprec.ation has been running al the
rate of $500. .o0o month. and the esti
mates of current net earnings are
nlaced at least $40 a share on the
stock.
Premiers' Speeches Cnheeded.
The markets of the day paid little
or no attention to Thursdays speech
of the British premier. in which he
asserted England's inability to pay
her American debt unless she was
al BILE to collect what was owed her
declaration of the French premier to-
day that France proposed to occupy
the Ruhr. If this was necessary. and
that she could not possibly pay with
out getting what was due her from
Germany. These attitudes had been
clearly understood at the time OF the
break of the London conference
! at the beginning of the week. They
were, therefore, treated in the nature
Of old news.
point in the early afternoon. In the
last hour the buying movement in the
industrials slackened. Tobacco shi"es
we're run up. and SO were one or two
of the oils. but weakness developed IN
some of the railway shares. and this
had the effec: of bringing about
general reaction.
Great Northern Breaks.
Wall street had had all sorts OF re-
ports regarding the Great Northern
dividend. which is TO be decided on
presumably at the meeting on Mon
day next Today it was disposed t"
look for 2 cut. Great Northern pre-
ferrcd stock t:oke sharply. and car
ried with It others OF the rails. es-
pecia,Iy the stocks of the northwest
ern carriers and Union Pacific.