Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-07-22
VERY firm TONE
!. IN LOCAL MARKET
Steady Advance Of PsnnsyI-
vania Railroad Encouraging
to the Smalt investors

While trading in the local stocks was
not particularly active. the market re-
tained tone Of decided strength. The
continued frmness Of Pennsylvania
Railroad and American Stores, with
both making a strong comeback after
early recessions, was the outstanding
development Of the more or less lin.
tied dealings. Both issues closed at
the top prices Of the week and year.
Electric Storage Battery. also made
strong rally but surrendered most OF
the improvement again near the closing.
The early operations were marked BY
broader dealings in the 80 called New
York stocks. Of which the Independent
steel group was the leading attraction.
As this quarter Of the market was en-
tirely governed BY the gyrations OF the
New York board, the movements con.
sequently lacked local color.
On very small dealings the Philadel.
phia Electric issues showed unbroken
firmness. y. g. l.. on the other hand,
on light offerings dropped back to 52H
while the preferred held at the high fis-
The outstanding event of the week
from an investment point OF view 80 far
vance in the stock Of the Pennsylvania
Railroad to AZ. representing a recovery
Of $3.50 a share from the low quota
ton Of the year. In view Of the wide
distribution Of this stock, especially
among the small investors. the en-
hnncement of market value is signiti-
cant In more ways than one.
In the first place, It reflects the re.
turn Of confidence on the part Of the
investing public toward this favorite,
which was rudely shaken not many
months ago. because Of the ill-timed and
injudicious remarks Of certain interests.
who had not the slightest provocntion
for doing 30. regarding the dividend pos
radical change in conditions since then.
but there was never any reason for the
small investor in sacrificing holdings.
In the steady and consistent advance
in the stock the last five months, more
especially perhaps in the last two, there
is to be found n reasonable assurance
Of an early restoration Of the 6 per cent
dividend rate. This probably from all
accounts will be realized in the last
quarter. Not only has the manage.
ment succeeded in obtaining an upper
hand Of overhead charges, but they also
happily succeeded in ironing out all ex-
listing differences with the small army OF
employees.
lHe DeUpUClUl TeSultS lTOIi
the far reaching economies superficially
would warrant resumption Of the 6
per cent rate ut an early date. The
majority Of the board, however, are Of
the opinion 1t would be wiser and
safer course to defer change In the divi-
dend policy until gross revenue caught
up prorortionately with the net income.
A settlement Of the bituminous coal
strike would unquestionably result in q
material increase In gross earnings. as
the freight movement in the last two
months demonstrated clearly that ex.
pansion in general traffic was making
inronds into car supply. despite falling
off in coal loadings.
Fuel shortage, however. within the
last fortnight has caused considerable
slowing down Of industrial activity in
many regions traversed by the Penn
sylvania lines. which proves the wis.,
dom Of the board in postponing divi-
dend change until business and indus
trial affairs reach more normal
equilibrium.