Evening star., 1922-10-13
BIG STOCK DIVIDEND.
FULLY DISCOUNTED.
Standard Oil of N. J. Drops
Twenty Points-GeneraI
Market Is Firm.
BY STUART p. WEST.

BY Special Leased Wire TO The Star.
NEW YORK, October 10 An
nouncement of the recapitalization
plan of the Standard OH OF New Jer-
sey. with its 400 per cent stock divi-
dend. was the first consideration be-
fore the stock market today.
The discovery that the Split-up OF
the share capital would mean moth
ing extra, at least Immediately, for
shareholders seemed to occasion
genuine disappointment. The street
promptly drew the inference that the
so points advance in the stock within
overdone things, and there was a rush
to sell. which caused a ten point break
right at the opening and a total drop
of more than twenty points later on.
lnasmuch as the incentive for a
good deal of the recent speculation
has laid in the supposed stimulus OF
this and similar plans for capital
readjust stment the collapse in Stand
ard Oil shares furnished pretty Sc
we're test for the market as a whole.
II did hit the oil shares rather hard.
putting stop to further attempts
d
quarter But it had surprisingly little
disconcertinS effect elsewhere.
Picking Favorites.
There was a half hour or SO OF
uncertainty at the start, but then
special buying operations were re-
sumed. following the usual practice
of singing out dozen or so stocks
and concentrating all efforts upon
these.
The days highly irregular move
ment in the share list had little sig
rifcance for the financial and busi-
ness situation at large.
All the individual advances were
inspired by conditions In specific In
dustries and the expectations OF
these leading to favorable dividend
action.
AS the heavy oversubscription to
the new s5OO.o0O. 900 government loan
had been clearly foreshadowed all
sponsive to the formal announce
ment of the result. The decline in
liberty issues-all but the Si2s-
quite likely meant that a certain
amount of switching was going on
from the old tc the new. because of
have to run.
Foreign Issues UninterestinE.
With the Turkish question removed
ropean government bonds and in the
exchanges were the most uninterest-
ing of any day in some time.
United Kingdom issues were slight
1y higher and SO was sterling.
French bonds were unchanged while
francs were up a trif1e.
AS expected, last weeks expansion in
both English and French note circula-
ton, being due to the temporary in
crease in demands over quarter-day,
were promptly undone during the pres
ent week.
News that arrangements had been
made for the first $50.000.00O payment
for interest and sinking fund on the
British war debt to the United States
had no effect, because the purchase OF
had been completed nearly two months
ago
Comment ON Marks.
as at all conclusive. the punitive meas
ures adopted by the Berlin government
to bring about improvement III the mark
will not accomplish much.
1t Is all very we'll to stop specula-
tion and forbid the exchange of marks
for foreign currency But these have
not been the primary causes for the
decentralization In the German paper
money.
The most drastic expedients will not
avail with the volume of outstanding
notes jumping the way it has been.
more especially since the 1st of Au-
gust. The latest reichsbank state
ment shows another increase of 27,-
ooo.000.0O0 marks in the circulation
item. following the 26.000.000.000 in
crease of the week preceding.
Alcohol Stocks Higher.
The run-up in Industrial Alcohol
across 10 today had number of
causes behind it. Industrial Alcohol
Is a Standard Oil concern. and there
is the likelihood of a profitable deal
panies for the sale of the fuel alcohol
American Can Crosses 20.
Getting above 20, American Can
for the present year but for all time.
The last previous top was In the
great speculative boom of 1919. when
the stock reached 6S1a. These COM
parisons fit in with what has already
been said about the company's earn
ings position, that 1t is having the
hest year 1t has ever had.
Sugar Stocks Firm.
The continued strength today of
Cuba Cane Sugar preferred and the
better tone in other of the sugar
stocks were in response to the steady
Improvement in the sugar trade. Raw
sugar, which Is the key to the situa-
tion, sold at as a pound today for
both immediate and later October
shipment.
The buying Of the raw product was
particularly large. Cuba Cane pre-
ferred, as was pointed out recently
is In an unusually good position.
The Rubber Situation.
The imposition of a high expor,
duty by British colonial authorizes
on all exports of rubber from pres
ent producing companies has brought
about a fundamental change in the
rubber situation practically over
night. Crude rubber jumped Thurs
day In London from II cents to 20
cents a pound, and the understand
ing in Wall street Is that the export
tax will be kept in effect until crude